• What? Equity support of Rs 5,000 crore approved for SIDBI.
• By Whom? Union Cabinet chaired by PM Narendra Modi.
• Implementer: Department of Financial Services (DFS), Ministry of Finance (MoF).
  Tranches: Three installments (FY26 to FY28).

• Tranche 1: Rs 3,000 crore in FY 2025-26
• Tranche 2: Rs 1,000 crore in FY 2026-27
• Tranche 3: Rs 1,000 crore in FY 2027-28

SIDBI Equity Infusion Plan:
Infusion: The equity capital of Rs 5,000 crore will be infused into SIDBI by the Department of Financial Services (DFS), Ministry of Finance (MoF), in three distinct tranches in Financial Year (FY) 2026-2028.

• Tranche 1: Rs 3,000 crore in FY 2025-26 at a book value of Rs 568.65 per share (as of 31st March 2025).
• Tranche 2: Rs 1,000 crore in FY 2026-27 at the book value as of 31st March 2026.
• Tranche 3: Rs 1,000 crore in FY 2027-28 at the book value as of 31st March 2027.

MSME Growth: Financial assistance will grow from 76.26 lakh MSMEs in FY25 to 1.02 crore by FY28, adding 25.74 lakh units, generating 1.12 crore new jobs, while 6.90 crore existing MSMEs have created 30.16 crore jobs (as of 30th September 2025).
Capital Adequacy: The equity infusion will help maintain SIDBI’s Capital to Risk-weighted Assets Ratio (CRAR) above 10.50% under stress and 14.50% under Pillar 1 and 2 norms, protect its credit rating, and provide a higher capital cushion as directed credit and venture debt increase Risk-weighted Assets (RWAs).
Support: The new capital will enable digital and collateral-free lending, support venture debt to startups with higher RWAs, and allow SIDBI to raise resources at fair rates, passing lower interest benefits to MSMEs.
About Small Industries Development Bank of India (SIDBI):
Chairman and Managing Director (CMD)- Manoj Mittal
Headquarters – Lucknow, Uttar Pradesh (UP)
Established – 1990