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SKS Microfinance has said that it has got a good rating for securitising Rs 243 crore of receivables from over three lakh borrowers drawn from operations outside of Andhra Pradesh.
The only listed microfinance institution (MFI), SKS said the transaction of Rs 243 crore has been given the ‘highest safety' rating by CARE. It implies that the company has strong capacity for timely payment of short-term debt obligation and carry the lowest credit risk, according to a press release.
The rated pool consists of a total of 3,22,312 woman borrowers belonging to the weaker sections. It is well-diversified with a single branch accounting for less than one per cent of the pool. The average loan amount is Rs 11,131.
SKS operates in 19 States, including Andhra Pradesh. Interestingly, the borrowers are from the 18 States, barring Andhra Pradesh. It may be recalled that the company has taken a big hit in overall operations in the State post the AP MFI Act of September 2010.
Commenting on the transaction, Mr S Dilli Raj, Chief Financial Officer, SKS Microfinance, said: “SKS delivered on all its promises to the credit-granting community through the painful transition phase post the AP MFI Act. Now, it is time to reap the fruits of consolidation.”
The SKS scrip rose by nearly 10 per cent during the day reacting to the development to close around Rs 98 on the BSE on Monday.
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