Micro, Small and Medium Enterprises (MSMEs) are playing a stupendous role in the overall development of Indian economy. This is true even in the case other economies in the World. However, these enterprises have not been able to utilize their full potential to contribute for further development of the economy owning to many a number of problems. One such problem, of course a dominant problem, is the financial problem. The Development Financial Institutions (DFIs) such as Karnataka State Financial Corporation (KSFC) have become, to a greater extent, a panacea for the financial tribulations of MSMEs. In this backdrop, this paper makes an attempt to examine the performance of KSFC in terms of a few parameters such as number of new and existing industrial enterprises in MSME sector assisted, amount of assistance, interest expense, interest income, net interest spread, profit after tax, etc.