Small Industries Development Bank of India (SIDBI) reported a 3.6 per cent increase in FY21 net profit at ₹2,398 crore against ₹2,315 crore in FY20 on the back of lower interest and finance charges as well as operating expenses.

Net Interest Income (difference between interest earned and interest expended) grew 11.5 per cent year-on-year (YoY) to ₹3,678 crore in FY21 against ₹3,299 crore in FY20, the Development Financial Institution (DFI) said in a statement.

Non-interest income declined 12 per cent YoY to ₹944 crore in FY21 against ₹1,069 crore in FY20.

Interest & finance charges were down about 15 per cent YoY to ₹6,543 crore (₹7,722 crore). Operating declined about 8 per cent YoY to ₹560 crore (₹607 crore).

Net interest margin increased by 10 basis points (bps) to 2.04 per cent as on March 31, 2021 from 1.94 per cent as on March 31, 2020, the DFI said.

Total advances of the DFI, which is engaged in creating an integrated credit and development support ecosystem for Indian Micro, Small and Medium Enterprises (MSME), declined about 6 per cent YoY to ₹1,56,233 crore as of March 31, 2021, from ₹1,65,422 crore as of March 31, 2020.

However, investments jumped 72 per cent YoY to ₹19,153 crore from ₹11,118 crore.

Gross Non-Performing Assets (GNPA) ratio decreased by 45 basis points (bps) from 0.63 per cent to 0.18 per cent, and Net NPA (NNPA) ratio decreased by 28 bps from 0.40 per cent to 0.12 per cent, as on March 31, 2021.

SIDBI said Provision Coverage Ratio (PCR) rose to 93.24 per cent as on March-end 2021 from 78.35 per cent as on March-end level.

There are 23 shareholders in the DFI including State Bank of India (16.73 per cent stake), Government of India (15.4 per cent), Life Insurance Corporation of India (14.25 per cent), National Bank for Agriculture & Rural Development (10 per cent), Punjab National Bank (6.37 per cent) and Bank of Baroda (5.43 per cent).

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