SKS Microfinance receives fresh funds worth Rs 200 Cr

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oi-Sneha

By Sneha B K

Published: Thursday, March 15, 2012, 13:02 [IST]

SKS microfiance limited a non-banking finance company (NBFC-MFI),has received sanction for two rated pool assignment transactions worth Rs 100 crore each from two different banks totaling Rs 200 crore.

The shares of the company on BSE were up Rs 3.10 at 139.15 at 12.30 pm IST on Thursday. SKS Microfinance shares surged last week on the hopes that this Budget 2012-13 will bring in some good news for microfinance sector.

It is expected that this budget, Microfinance bill will be introduced, which will make it compulsory for all Microfinance companies to get registered under RBI, this will help the company to start lending in Andra Pradesh.

The Hyderabad based, SKS Microfinance has also drawn down Rs 162.1 crore as the second tranche of the recent Rs 354 crore sanction, which is the largest such deal in the M FI history, obtained from a public sector bank.

The Rs 200 crore sanction from two different entities are 10th and 11th assignment/ securitization transactions post the AP M FI Act.

"The recent closures, happening in quick succession, demonstrate the increasing confidence of the financial world in the M FI model in general and SKS in particular," said M r S Dilli Raj, Chief Financial Officer, SKS M icrofinance Limited.

"The Government of India's official announcement regarding the tabling of the M FI bill in the ongoing Budget Session is another significant milestone in M FI history."

Pool receivables are identified from 18 non-Andhra Pradesh states where SKS M icrofinance operates. The pool is well diversified with a single branch accounting for less than 1% of the pool, with the average loan amount being Rs 11,177.

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