A Study on Performance Analysis of Small Industries Development Bank of India

Abstract

Small Industries Development Bank of India, SIDBI was set up with the aim of promotion, financing and development of the small scale sector, and co-ordination of the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector. SIDBI also refinances institutions such as state financial corporations (SFCs), state industrial development corporations (SIDCs), and commercial banks against loans granted to the small-scale sector. SIDBI also acts as financier for small-scale projects directly on a selective basis. The prominent role of SIDBI is to ease the credit supply in its endeavors to support Micro, Small and Medium Enterprises sector. SIDBI as an development bank plays a vital role and as an integral part of financial ecosystem it plays a linchpin part in the overall economic development of the economy. Bank is establish to support Micro, Small and Medium Enterprises  and make this sector globally competitive so that MSME can serve better to both domestic and international market demands. The most challenging situation Covid Pandemic demanded for more robust approach meticulous efforts to support MSMEs in this situation It encourages Entrepreneurship to broaden the ecosystem of regulators. In order to provide adequate credit supply to MSME sector Financial Institution like SIDBI should have adequate resources. Profitability of Bank is one of the indicator which can bring into lime light the sources and applications of Banks funds. With this backdrop, this research studies aims to find out the performance of SIDBI in terms of Net worth, its portfolio size, Net Income, Assets Based, Profits. Loans and advances and NPA. The study is conducted from year 2005 to 2020 data extracted from Annual Reports of SIDBI. In order to study and examine the performance of developmental bank multiple regression was used in the study. In depth review of the available literature and apt peer-reviewed research studies was conducted followed by the statistical analysis of collected data of SIDBI.