Sidbi Q3 results: Net profit grows 9% to Rs 630 crore

Mumbai: MSME lender Sidbi recorded a net profit recorded a growth of 9% to Rs. 630 crore for the quarter ended December,20 from Rs. 578 crore in the same period last year.

The lender was sanctioned a liquidity support of Rs 15000 crore in April as special refinance facility from the Reserve Bank of India at the repo rate in April, 20 to deal with the MSME funding during the pandemic besides government push for MSME lending. This is likely to have lowered its average cost of funds. Its net interest income increased by 3% to Rs.840crore in Q3'FY'21 from Rs.816crore in Q3'FY'20

“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. "We have also managed to keep our asset quality under check by. Our focus will be on sustaining the growth and scalability with various measures targeted towards recovery and strengthening of the MSME ecosystem.”

For the nine month period ended December 20, it recorded a 38.4 per cent growth in net profit to Rs 2,165 crore, from Rs 1,564 crore for nine month ended December 19.