India, January 21 , 2026: Today, the Union Cabinet chaired by the Hon’ble Prime Minister, Shri Narendra Modi has accorded approval for an equity infusion of ₹5,000 crore in three tranches (`3,000 crore in FY2026, `1,000 crore each in FY27 and FY28), aimed at significantly enhancing the flow of affordable and timely credit to India’s vast Micro, Small and Medium Enterprises (MSME) sector.
In the recent years, SIDBI has expanded its operations rapidly and its balance sheet as on September 30, 2025 crossed `5.8 lakh crore. SIDBI has opened 65 branches in the last two FYs and its present branch network is 161 branches covering 195 identified major MSME clusters by MoMSME, GoI.
The equity infusion is expected to significantly scale up SIDBI’s ability to serve MSMEs across the country by further reaching out to all major MSME clusters. The equity support will be leveraged by the Bank to scale its business further through expansion of its branch network, introduction of more innovative digital products for working capital, invoice discounting, specialized products for defence sector, machinery loans, etc., SIDBI shall also scale up its efforts in ecosystem development. Further, theme-based refinance support, co-lending with NBFCs and RRBs, equity support at incubation and Pre-IPO stage as well as anchor investments will also be scaled up.
Shri Manoj Mittal, CMD, SIDBI stated that “I would like to sincerely thank the Government of India for reposing its trust in SIDBI. I am confident that SIDBI shall play a significant role in empowering the MSME sector – as truly identified as a growth engine of the nation to achieve the goals under Viksit Bharat, 2047”.
The Bank would also enhance formalization process of Informal Micro Enterprises (IMEs) and support ecosystem development through energy efficient and cluster interventions in the form of financing as well as outreach programs with industry associations.
About SIDBI:
Since its formation in 1990, SIDBI has been touching the lives of citizens across various strata of society through its integrated, innovative and inclusive approach for all round development of MSMEs. SIDBI has directly or indirectly through various credit and developmental measures impacted the myriad Micro, Small and Medium Enterprises (MSMEs) in the country, whether they are traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, or high-end knowledge-based entrepreneurs.
For more information, please visit: https://www.sidbi.in/.
The official press release issued by the Press Information Bureau (PIB) is available at the following link and is also attached herewith for your reference:
https://www.pib.gov.in/