SIDBI expands with 71 new branches, MSME credit grows by 36.8%

SIDBI has opened 71 new branches nationwide. Its direct credit outstanding for MSMEs grew by 36.8% year-on-year to Rs 51,687 crore, while its refinance portfolio increased by 16.9% to Rs 4,50,571 crore, the Rajya Sabha was informed.

The Small Industries Development Bank of India (SIDBI) has expanded its nationwide presence by opening 71 new branches across the country while its direct credit outstanding portfolio for micro, small and medium enterprises (MSMEs) grew 36.8 per cent year-on-year, the Rajya Sabha was informed on Tuesday.

Expansion and Direct Credit Growth

In a written reply, Minister of State for Finance Pankaj Chaudhary said SIDBI opened 71 new branches between April 1, 2024 and July 29, 2026 following the Union Budget 2024-25 announcement. The new branches have been established to serve major MSME clusters and strengthen direct credit delivery to the sector. According to the reply, SIDBI's direct credit outstanding portfolio stood at Rs 51,687 crore as on March 31, 2026, compared with Rs 37,781 crore a year earlier, registering a year-on-year growth of 36.8 per cent.

Growth in Refinance Support

The minister said SIDBI also continued to strengthen credit flow to MSMEs through refinance support to Primary Lending Institutions (PLIs). Its refinance outstanding portfolio increased to Rs 4,50,571 crore as of March 31, 2026, from Rs 3,85,327 crore a year earlier, reflecting a year-on-year growth of 16.9 per cent.

Initiatives for Underserved MSMEs

The reply further said SIDBI has introduced several initiatives to improve credit access for underserved MSMEs. These include co-lending arrangements with Non-Banking Financial Companies (NBFCs) to provide affordable credit to smaller enterprises, while during FY2025-26 the bank also initiated co-lending partnerships with Regional Rural Banks (RRBs) to broaden financial access in underserved and untapped areas.

Among other initiatives, SIDBI has launched the Prayaas Scheme to facilitate affordable credit for informal micro-entrepreneurs, particularly women and economically weaker sections. It has also introduced the GST Sahay app, which provides 'on tap' invoice-based, cash flow-based small-value credit to micro enterprises using trade data and digital frameworks.

Government Support via ECLGS 5.0

The minister also said the government introduced the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0) in May 2026, under which eligible MSMEs can avail additional credit of up to 20 per cent of their peak fund-based working capital outstanding during the fourth quarter of FY2025-26. The scheme provides 100 per cent guarantee coverage to Member Lending Institutions for eligible MSME borrowers and envisages an additional credit flow of Rs 2.55 lakh crore for MSMEs, non-MSMEs and scheduled passenger airlines. (ANI)

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