New Delhi, Jun 19 (KNN)  Nonperforming assets of Small Industries Development Bank of India (SIDBI) have increased from 0.34 per cent in 2011-12 to 0.69 per cent in 2012-13.

Net NPAs stood at 0.98 per cent up from 0.53 per cent in the previous year.

“It was a difficult year for the MSME (micro, small and medium enterprises) sector,” said Sidbi chairman, Sushil Munhot.

“We have seen NPA rise in both direct and indirect finance. Because large industries were affected, it trickled down to the small and scale sector as well,” he added.

He clarified that SIDBI was not competing with banks but trying to address the financing gap of the MSME sector.

“We are not in competition with banks, but are complementing the banks,” he said.

Meanwhile SIDBI which was created with the prime objective of lending to MSMEs registered a 14.6 per cent growth in net profit.

SIDBI made a profit on account of one-time refund of Rs 187 crore, including interest of Rs 45 crore from the income tax department. (KNN)