Stocks

SKS hits all-time low of Rs 477.70

| Updated on: Apr 28, 2011

The scrip of SKS Microfinance Ltd has touched an all-time low to end at Rs 477.70 on the BSE on Thursday.

It declined 2.57 per cent after opening at Rs 494.

The downward march of country's only listed MFI stock began afresh on Wednesday when it closed at Rs 490.30. This was the first time that the scrip fell below Rs 500.

The Hyderabad-based company's stock has been sliding since it reached a peak of Rs 1490.70 in September 2010, after listing in August. The stock began to descend after allegations of harassment of clients by recovery agents and subsequent legislation by Andhra Pradesh Government to regulate MFIs in October 2010. Ever since, the company, which had 25 per cent of its outstanding portfolio in AP, is facing a near-complete halt of collection and disbursal of loans.

SKS is also facing an enquiry by the IRDA for ‘irregularities' in handling clients' insurance and fresh allegations that some claims were not being paid. The expectations in the market about the MFI policy to be announced by RBI next month and its likely adverse impact on the industry and company could also be behind the fall of scrip.

Published on April 28, 2011

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