SIDBI reports 9 per cent net growth to Rs 630 cr in Q3 FY21

New Delhi, Feb 16 (KNN) Small Industries Development Bank of India (SIDBI) --- the principal financial institution focusing on Micro, Small, and Medium Enterprises (MSMEs) in the country has reported a 9 per cent net profit growth to Rs 630 crore in Q3 FY21 from Rs 578 crore in Q3 FY20.

According to SIDBI, the non-interest income for the bank was up 16.7 per cent to Rs 154 crore in Q3 FY21 vis-à-vis Rs 132 crore in the year-ago period. The net interest income grew 3 per cent to Rs 840 crore in Q3 FY21 from Rs 816 crore in Q3 FY20.

“The credit growth to the MSME sector has been strong despite the impact of the Covid-19 pandemic and this has helped us to achieve encouraging financial performance with a boost to our loan book,'' said V Satya Venkata Rao, Deputy Managing Director, SIDBI.

For the nine-month period ended December 31, 2020, SIDBI reported a 38.4 per cent jump in net profit from the year-ago period. The lender posted Rs 2,165 crore net profit up from Rs 1,564 crore while the operating profit (before provision) increased 14.6 per cent to Rs 3,301 crore in nine months of FY21 from Rs 2,880 crore in the corresponding period of the preceding year.

The bank also saw a 22 per cent jump in net worth to Rs 20,694 crore for the nine-month period of FY21 from Rs 16,941 crore for the similar period of FY20 while the Net Interest Income grew 22.3 per cent to Rs 2,898 crore from Rs 2,370 crore.

The Net Interest Margin (annualized) increased to 2.27 per cent from 1.94 per cent and earnings per share was up from 29.41 to Rs 40.70. SIDBI’s Capital Adequacy Ratio (CAR) also improved to 29.04 per cent from 24.79 per cent while Return on Capital Employed jumped to 10.45 per cent from 9.08 per cent.

SIDBI’s Gross Non-Performing Assets (GNPA) decreased to Rs 669 crore (0.47 per cent) from Rs 1,550 crore (0.97 per cent) during the nine-month period for the two years. Its Net NPA (NNPA) reduced to Rs 114 crore (0.08 per cent) from Rs 884 crore (0.56 per cent).