New Delhi, Jan. 21 -- The union Cabinet has approved an equity infusion of Rs 5,000 crore into the Small Industries Development Bank of India (SIDBI) to strengthen credit flow to the micro, small and medium enterprises (MSME) sector and support employment generation, an official statement said on Wednesday here.
The capital support will be provided by the Department of Financial Services in three tranches, with Rs 3,000 crore to be infused during the current financial year 2025-26, followed by Rs 1,000 crore each in 2026-27 and 2027-28.
The equity infusion will be made at the book value of SIDBI shares as of March 31 of the preceding financial years.
The additional capital is expected to significantly enhance SIDBI's lending capacity, en...