An Analysis of Financial Performance of SIDBI

Small Industries Development Bank of India (SIDBI) has celebrated its 25^th anniversary and during this period, it has come a very long route. SIDBI is an apex bank for the development of Micro, Small and Medium Enterprises (MSMEs). The MSME sector contributes a significant part in the economic development of the country. Thus, to contribute in the development of the MSME sector, it is important for the Bank to be financially strong. The Bank, being a financial institution, must have sufficient resources to meet the credit needs of the MSMEs. Since profitability is an index of the efficiency of a banking enterprise, a profit making bank can infuse confidence in the public at large which is necessary for its survival and growth. Thus, it is necessary that every institution must earn an adequate return on its capital to undertake social obligations. This paper deals with the financial analysis of SIDBI. An attempt has been made to analyze the financial performance of the Bank by using tools like percentage, ratio analysis. The financial performance of the Bank has been highlighted through reviewing the balance sheet, profit and loss account and thereafter financial analysis through financial ratios. The financial performance has been analyzed for the period of the last 10 years from 2006–07 to 2015–16. By reviewing the balance sheet and profit and loss account of Bank, it is found that the majority of the parameters taken shows an increasing trend during this period