India, Jan. 21 -- the Union Cabinet, led by Prime Minister Narendra Modi, approved a Rs 5,000 crore equity support for the Small Industries Development Bank of India (SIDBI).

This capital will be infused in three tranches: Rs 3,000 crore in FY 2025-26, and Rs 1,000 crore in each of FY 2026-27 and FY 2027-28. This investment is expected to increase the number of MSMEs receiving financial assistance from 76.26 lakh to 102 lakh by FY 2028, generating an estimated 1.12 crore jobs.

To maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR), the capital infusion is necessary due to anticipated growth in risk-weighted assets from digital credit products and venture debt.

The phased capital injection aims to keep SIDBI's CRAR above man...