SKS Micro board says no to corporate debt revamp plan

Our Bureau Hyderabad | Updated on November 10, 2017

SKS Microfinance Ltd will not go for corporate debt restructuring.

The board of directors of Hyderabad-based company had decided against such a move at its meeting held on Wednesday.

SKS would, instead, explore other possibilities of additional fund raising from various banks/financial institutions, the company said in a notice to Bombay Stock Exchange.

As on January 2011, banks had an exposure of Rs 3,044 crore in the country's only listed MFI, which ran into trouble since October 2010 after the allegations of harassment of clients by recovery agents and enactment of AP Microfinance Regulation Act by the State Government.

SKS had to face almost zero collections in the State which accounts for over 25 per cent of its outstanding loan portfolio of about Rs 5,400 crore.

The company has started disbursals at a low key and is in the process of obtaining approvals from Government for fresh disbursals as per the Act.

SKS Micro's scrip gained 0.67 per cent to end at Rs 551.95 on BSE on Wednesday.

Published on March 16, 2011

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