India, Jan. 21 -- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an equity support of Rs 5,000 crore to the Small Industries Development Bank of India (SIDBI) to strengthen credit flow to the MSME sector.
The capital infusion will be made by the Department of Financial Services (DFS) in three tranches. Of the total amount, Rs 3,000 crore will be infused in FY2025–26 at a book value of Rs 568.65 per share as on March 31, 2025, while the remaining Rs 1,000 crore each will be infused in FY2026–27 and FY2027–28 at the book value as of March 31 of the respective preceding financial years.
Following the equity infusion, the number of MSMEs receiving financial assistance from SIDBI is expected to rise ...