New Delhi, Jan. 21 -- In a major push to strengthen credit flow to micro, small and medium enterprises (MSMEs), the union Cabinet on Wednesday approved an equity support of Rs 5,000 crore to the Small Industries Development Bank of India (SIDBI). The capital infusion, to be routed through the Department of Financial Services (DFS), is aimed at expanding MSME financing, shoring up SIDBI's capital adequacy and supporting job creation over the next three years.
Announcing the decision after the Cabinet meeting, the government said the equity capital would be infused in three tranches-Rs 3,000 crore in FY 2025-26 at a book value of Rs 568.65 per share as on March 31, 2025, followed by Rs 1,000 crore each in FY 2026-27 and FY 2027-28 at the boo...