SIDBI's credit growth likely to dip to 21% this fiscal

The Small Industries Development Bank of India (SIDBI) might witness a dip in credit growth on a year-on-year basis at 21 per cent this fiscal, as against 25 per cent during year ago period.

The 21 per cent growth is however, marginally higher than the targeted growth of 20 per cent for this fiscal, said Mr N. Raman, Executive Director, SIDBI.

“We had achieved more than 25 per cent growth in credit last fiscal. This year, however, the growth is slightly subdued. We might be able to post a credit growth of about 21 per cent this year,” Mr Raman told newspersons on the sidelines of a conference organised by the CII here on Friday.

There were some issues with loan repayment, particularly in the MSME sector, and SIDBI was looking at the possibility of restructuring of accounts, he said.

MSME sector

“The quantum of non-performing assets is larger for the MSME sector than that of the corporates and repayment is an issue. We are looking into restructuring of loans wherever possible, it is an on-going process,” he said.

Meanwhile, speaking at inaugural session of the conference, Dr Anup Chanda, Additional Chief Secretary, Department of MSME & Textiles, West Bengal, suggested the need for development of different set of policies for the augmentation of all the separate segments within the MSME sector.