In a standout performance among Indian financial institutions, the Small Industries Development Bank of India (SIDBI) has reported a net profit of ₹4,811 crore for the financial year 2024-25. What sets this result apart is not just the profit figure, but the fact that SIDBI ended the year with zero net NPAs (Non-Performing Assets) — a rare achievement in the current lending environment.

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Loan Book Growth With Minimal Risk Revenue and Profit See Healthy Jump Margins Under Pressure, But Stability Maintained A Benchmark for MSME Financing

Loan Book Growth With Minimal Risk

SIDBI’s total loan book expanded to a massive ₹4.96 lakh crore, reflecting its continued focus on lending to India’s MSME (Micro, Small and Medium Enterprises) sector. What’s particularly impressive is that over 91% of this lending is done through banks and NBFCs, helping reduce direct exposure to high-risk assets.

“Despite its focus on MSMEs — a sector often seen as credit-sensitive — SIDBI has maintained one of the cleanest loan books in the industry.”

Its gross NPAs stood at just ₹183 crore, which is only 0.04% of total loans, and most remarkably, net NPAs were nil. This speaks volumes about the bank’s robust underwriting and risk management practices.

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Revenue and Profit See Healthy Jump

SIDBI’s total income rose to ₹38,511 crore, supporting a 20% jump in standalone profit compared to the previous year. Even after factoring in the broader group performance, which includes subsidiaries like MUDRA and SIDBI Venture Capital, the numbers remain strong.

On a consolidated basis, SIDBI clocked a profit of ₹5,596 crore, up 16% from the previous year’s ₹4,813 crore. The consolidated income stood at ₹40,753 crore, registering a healthy 19% growth.

“The consistent rise in income and profit reflects SIDBI’s strategic focus on low-risk lending and effective cost controls.”

Margins Under Pressure, But Stability Maintained

While profit and income rose, the bank faced some pressure on margins due to rising borrowing costs. However, the overall returns remained stable thanks to its low-risk lending model and diversified partnerships with financial intermediaries.

“Even with tighter margins, SIDBI’s ability to deliver stable returns highlights its strong fundamentals.”

A Benchmark for MSME Financing

SIDBI continues to play a pivotal role in India’s MSME ecosystem, which is often marked by limited access to affordable credit. That makes the performance all the more commendable — clean asset quality in a high-risk sector is not just unusual, it’s exceptional.

As the government and financial sector continue to push for greater inclusion and credit access for small businesses, SIDBI stands out as a model institution delivering both impact and profitability.