SKS Microfinance gains on securitizing loans worth Rs 321 cr

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SKS Microfinance gains on securitizing loans worth Rs 321 cr
Shares of India's only listed microfinance institution SKS Microfinance Ltd gained as much as 3.8 per cent in the morning trade on Bombay Stock Exchange (BSE) after the company said it has completed securitization transaction for Rs 321 crore, rated A1+ (SO) by a leading rating agency, with a major public sector bank.

At 12:20 hours, shares of the company were trading at Rs 129 a piece, up 1.14 per cent from previous close on BSE."This fiscal we could complete the first securitization transaction in Q2 itself as against Q3 in FY'13. The present transaction generates liquidity of Rs 321 crore for SKS Microfinance Ltd., and enables the company to extend micro loans to 4,75,000 rural women entrepreneuers," SKS Microfinance, CFO, s. Dilli Raj said.

Notably, 29 per cent of the pool is from loans extended to women entrepreneurs from scheduled castes and scheduled tribes, 17 per cent from minorities, 37 per cent from backward castes and the remaining 17 per cent from women belonging to other castes. The entire pool thus qualifies for weaker section treatment for the bank, he added.

Dion Global Solutions Ltd.

Story first published: Monday, September 30, 2013, 13:18 [IST]
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