Sidbi posts 21% rise in profit

MUMBAI, June 9: The Small Industries Development Bank of India (SIDBI) has posted a 21 % increase in its net profit for the year ended March 31, 1997. Net profit, which stood at Rs 261 crore in 1995-96, increased to Rs 315 crore for the financial year just completed.

The development bank’s total income during the same period increased to Rs 1,290 crore indicating an increase of 14 % over the previous financial year.However, while SIDBI increased its sanctions by 7 % during the year to Rs 6,485 crore from Rs 6,065 crore during 1995-96, the bank saw its disbursements fall by 4.5 %. While total disbursements during 1995-96 stood at Rs 4,800 crore, disbursements during 1996-97 fell to Rs 4,585 crore.The aggregate sanctions and disbursements of assistance for project related financing which stood at Rs 583 crore and Rs 187 crore respectively, recorded a growth of 118 % and 47 % over the previous year suggesting that while SIDBI has been quick in granting sanctions, it has gone slow on disbursements.

During the year, SIDBI tied up with Dun & Bradstreet India Pvt Ltd to offer credit rating and other export related information services