New Delhi, Jan. 21 -- The Union Cabinet, led by Prime Minister Narendra Modi, has approved a Rs 5,000 crore equity infusion into SIDBI to bolster its lending capacity to Micro, Small, and Medium Enterprises (MSMEs).

The Department of Financial Services (DFS) will infuse equity capital in three tranches: Rs. 3,000 crore in FY 2025-26 at the book value of Rs. 568.65 as of March 31, 2025, followed by Rs. 1,000 crore each in FY 2026-27 and FY 2027-28, based on the book value as of March 31 of the respective preceding financial year.

Expansion of MSME Beneficiaries

Following the equity infusion, SIDBI is projected to increase financial support from 76.26 lakh MSMEs in FY 2025 to around 102 lakh by FY 2028, adding roughly 25.74 lakh new bene...