Recently, the Union Cabinet approved an equity infusion of ₹5,000 crore into the Small Industries Development Bank of India (SIDBI).The infusion will be provided by the Department of Financial Services in three tranches over three financial years.The decision aims to enhance SIDBI’s lending capacity to micro, small and medium enterprises.

Key Details of the Equity Infusion
¨     ₹3,000 crore will be infused in the financial year 2025–26 at a book value of ₹568.65 as on March 31, 2025.
¨     ₹1,000 crore will be infused in 2026–27 at the book value prevailing at the end of the previous financial year.
¨     ₹1,000 crore will be infused in 2027–28 at the book value prevailing at the end of the previous financial year.
Expected Impact on MSMEs
¨     The number of MSMEs receiving financial assistance is expected to rise from 76.26 lakh to 102 lakh by 2027–28.
¨     Around 25.74 lakh new MSME beneficiaries are expected to be added during this period.
¨     The expanded credit flow will support enterprise growth and improve access to formal finance.
Small Industries Development Bank of India (SIDBI)
¨     The Small Industries Development Bank of India (SIDBI) is the principal financial institution responsible for the promotion, financing and development of the MSME sector in India.
¨     SIDBI was established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989.
The headquarters of SIDBI is located in Lucknow, Uttar Pradesh.