Helped by a one-time tax-related gain and higher disbursal, Small Industries Development Bank of India (SIDBI) has posted a 48 per cent increase in its full-year profit to Rs 837 crore.
The financial institution, which provides loans to Micro, Small and Medium Enterprises (MSMEs), earned a refund of Rs 187 crore from the Income-Tax Department during the financial year.
Excluding this one-time gain, SIDBI’s net profit rose 15 per cent to Rs 652 crore (Rs 567 crore). Total loans outstanding grew 4.2 per cent to Rs 56,060 crore from Rs 53,785 crore.
Gross non-performing assets (NPA) ratio as a percentage of gross advances increased to 0.98 per cent in the year ended March 31, 2013 from 0.69 per cent a year ago. After accounting for provisions, the net NPA ratio increased to 0.53 per cent from 0.34 per cent.
The bank attributed to the rising bad loans to slowdown in large corporates, which in turn having an impact on the performance of small industries.
“It was a difficult year for MSMEs. Impact of economic downturn on large industries also affected small industries during the year,” said Sushil Muhnot, Chairman & Managing Director.
Total income during the year increased 17 per cent to Rs 5,401 crore.
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