US EditionCabinet Boosts Credit for Small Businesses with ₹5,000-Crore SIDBI Infusion, Extends Atal Pension Yojana to FY31
- The Union Cabinet approved an equity infusion of 5,000 into SIDBI, with the Department of Financial Services providing funds in three tranches on Wednesday.
- The government said the move was needed to shore up capital ratios, helping SIDBI maintain a strong capital-to-risk-weighted-assets ratio as lending to MSMEs rises and protect credit ratings.
- Of the ₹5,000 crore, ₹3,000 crore will be infused in 2025-26 at a book value of ₹568.65 as on March 31, 2025, and ₹1,000 crore each in 2026-27 and 2027-28, tied to book values, as the government said.
- The infusion is projected to create about 1.12 crore jobs by 2027-28, with MSME beneficiaries rising from 76.26 lakh to 102 lakh, adding 25.74 lakh by FY2028.
- According to Ministry data as on September 30, 2025, employment for 3016 crore people has been generated by 6.90 crore MSMEs, with an average 4.37 persons per enterprise.
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Union Cabinet approves ₹5,000 crore equity infusion into SIDBI to enhance credit to MSMEs
The equity infusion will be provided by the Department of Financial Services (DFS) and will be divided into three tranches of ₹3,000 crore in 2025-26, and ₹1,000 crore each in 2026-27 and 2027-28
Cabinet boosts credit for small businesses with ₹5,000-crore SIDBI infusion, extends Atal Pension Yojana to FY31
The government said following the equity infusion that the number of MSMEs receiving financial assistance from SIDBI is expected to rise from 7.62 million at the end of FY25 to about 10.2 million by FY28, or about 2.57 million new beneficiaries.
Cabinet Approves Major Equity Support for SIDBI to Boost MSME Credit
Get latest articles and stories on Business at LatestLY. The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a significant equity support of Rs. 5,000 crore for the Small Industries Development Bank of India (SIDBI). This capital will be infused by the Department of Financial Services in three separate stages, starting with Rs. 3,000 crore in the 2025-26 financial year, followed by Rs. 1,000 crore in each of the next two yea…
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