The Ministry of Finance (MoF) on January 21, 2026, notified regarding the equity support to the Small Industries Development Bank of India.
The following has been stated namely: -
• The Union Cabinet has approved an equity infusion of ₹5,000 crore into the Small Industries Development Bank of India (SIDBI) to strengthen its capital base and enhance credit flow to MSMEs.
• The infusion will be made by the Department of Financial Services in three tranches—₹3,000 crore in FY 2025–26 at the book value as on 31 March 2025, and ₹1,000 crore each in FY 2026–27 and FY 2027–28 at the respective year-end book values.
• The capital support is aimed at maintaining a healthy Capital to Risk-Weighted Assets Ratio (CRAR) amid rising risk-weighted assets due to expanded directed credit, digital collateral-free lending, and venture debt for start-ups.
• The infusion will help SIDBI sustain strong credit ratings, raise funds at competitive rates, and increase MSME lending. As an impact, the number of MSMEs receiving financial assistance is expected to rise from 76.26 lakh to about 102 lakh by FY 2027–28, potentially generating around 1.12 crore additional employment opportunities.
[Press release id - 2216724]
