Financial Performance Evaluation of Sidbi

The SIDBI is a prominent financial institution formed with a motive to develop, promote and finance small businesses specifically MSMEs (Micro, Small and Medium Enterprises). SIDBI also coordinate with those institutions participating in ancillary endeavours. This works as an apex bank for ensuing financial and technical help to small and marginal businessmen and other unprivileged individuals. SIDBI got special attention in the policies of state government and central government related to MSMEs. SIDBI launches various schemes for the betterment of small businesses. These schemes are designed to provide deposits and loans to the beneficiary. MSMEs are the utmost important area of concern for every country reasons behind this are providing employment opportunities, improving the standard of living, facilitating economic as well as social etc. Most of the MSMEs are established in rural areas to get financial help from the government and other factor inputs. The objectives of the paper are to understand and explore the working of SIDBI for the beneficiaries and to assess the financial standing of SIDBI. Also, it will identify and analyze the trends of financial performance which includes trends of Income, paid-up capital, reserves and funds, dividends to shareholders and net proceeds of the last five years. This study is of descriptive type and secondary data will be employed for the analysis, which will be collected from all the relevant sources. Various statistical methods will be employed to analyze the data and assess performance. The study covers the financial period from 2015-16 to 2020-21.