Cabinet approves ₹5,000 crore equity support to SIDBI
The Union Cabinet on 21 January 2026 approved equity support of ₹5,000 crore to the Small Industries Development Bank of India, to be infused in three tranches up to FY 2027-28.
Summary
The Union Cabinet chaired by PM Narendra Modi approved ₹5,000 crore of equity capital for SIDBI. The Department of Financial Services will infuse it in three tranches: ₹3,000 crore in FY 2025-26 at the book value of ₹568.65 per share as on 31 March 2025, and ₹1,000 crore each in FY 2026-27 and FY 2027-28. The number of MSMEs receiving financial assistance is expected to rise from 76.26 lakh at the end of FY 2025 to 102 lakh by the end of FY 2028, adding about 25.74 lakh new MSME beneficiaries and an estimated 1.12 crore jobs. The capital will help SIDBI maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR) as directed credit, collateral-free digital products and venture debt grow.
Key facts
- Approved
- Union Cabinet, 21 January 2026
- Equity support
- ₹5,000 crore, via Department of Financial Services
- Tranches
- ₹3,000 cr (FY26), ₹1,000 cr (FY27), ₹1,000 cr (FY28)
- FY26 book value
- ₹568.65 per share (31 March 2025)
- MSMEs assisted
- 76.26 lakh (FY25) → 102 lakh (FY28)
- Estimated jobs
- 1.12 crore
Practice MCQs 3 questions
How much equity support to SIDBI did the Union Cabinet approve on 21 January 2026?
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Correct answer: D — ₹5,000 crore
PIB (Cabinet): the Cabinet approved equity support of ₹5,000 crore to SIDBI.
Consider the following statements about the SIDBI equity infusion approved in January 2026: 1. ₹3,000 crore will be infused in FY 2025-26. 2. The infusion will be made by the Department of Financial Services. 3. The number of MSMEs assisted is expected to reach 102 lakh by the end of FY 2028. Which of the statements given above are correct?
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Correct answer: D — 1, 2 and 3
PIB (Cabinet): DFS will infuse ₹3,000 crore in FY 2025-26 and ₹1,000 crore each in the next two years; MSMEs assisted are expected to rise from 76.26 lakh to 102 lakh by end-FY 2028. All three are correct.
The SIDBI capital infusion is primarily meant to help the bank maintain a healthy level of which ratio as its risk-weighted assets grow?
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Correct answer: A — Capital to Risk-weighted Assets Ratio
PIB (Cabinet): rising risk-weighted assets from directed credit, collateral-free digital products and venture debt require more capital to sustain a healthy CRAR.