An Assessment of the Financial Performance of SIDBI

  • S. Jacqueline Francis

Abstract

SIDBI is an apex bank for the development of Micro, Small and Medium Enterprise (MSMEs) and it has come a very long route. The MSME sector contributes a significant part in the economic development of the country. Hence in order to contribute in the development of the MSME sector, it is important for the Bank to be financially strong. Being a financial institution, the Bank, must have adequate resources to meet the credit needs of the MSMEs. Since profitability is an indicator 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. Therefore, 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 2007-08 to 2017-18. By reviewing the balance sheet and profit and loss account of Bank, it is found that the majority of the parameters taken show an increasing trend during this period

Published
2019-12-27
Section
Articles