The apex bank for the small-scale industry (SSI) sector has recorded a 15.4 per cent increase in sanctions to Rs 7,484 crore for the year while the disbursements increased by 14.3 per cent to Rs 5,241 crore. The income was up 9.2 per cent at Rs 1,408 crore.

The Sidbi's board of directors, at a meeting held today at Varanasi, have decided to pay a 15 per cent divided to its parent, the Industrial Development Bank of India (IDBI). It will transfer Rs 67.50 crore to the IDBI as a return on capital at 15 per cent.

The board meeting also discussed the recent recommendations made in the Narasimham committee and the Khan working group reports which suggested greater responsibility to the Sidbi.

"The Sidbi is well poised to take up the leading role in meeting various developmental and financial requirements of small-scale industries," a Sidbi releasesaid.

Refinance and project finance made the maximum contribution to its total sanctions of Rs 7,484 crore, with refinance contributing Rs 3,172 crore and the project-related assistance contributing Rs 1,193 crore for 1997-98. Sanctions in project-related finance increased sharply by around 100 per cent from Rs 583 crore the previous year. The growth in refinance disbursements for 1997-98 was 36 per cent at Rs 2,640 crore. The increase in the refinance component was mainly contributed by higher utilisation of the facility by banks and state-finance corporations. Disbursements in project-related financing witnessed a quantum jump to Rs 430 crore in 1997-98 from Rs 187 crore last year.

The increased operations under the technology-development and modernisation-fund scheme, infrastructure-development scheme, venture capital-assistance scheme, marketing-assistance scheme and pre-shipment and post-shipment credit have contributed to the sharp increase in project-related finance, said a Sidbi pressrelease.

Sanctions under the technology-development scheme recorded a three-fold increase from Rs 15 crore to Rs 48 crore in 1997-98. Sanctions under the infrastructure-development schemes increased from Rs 237 crore to Rs 476 crore in 1997-98 while disbursements on the same account increased from Rs 6 crore to Rs 114 crore this year. Marketing-assistance scheme contributed Rs 148 crore from the previous year's Rs 12 crore. Assistance out of the Sidbi's venture capital fund aggregated Rs 59 crore during 1997-98, compared with Rs 12 crore the previous year. Foreign-currency assistance to SSIs increased to Rs 218 crore in 1997-98 from Rs 81 crore the previous year.