Hyderabad: SKS Microfinance today said it has concluded securitisation of two loans given to small borrowers aggregating to Rs 390 crore.
With this, SKS Microfinance has completed seven securitization transactions aggregating to Rs 803 crore in FY13, SKS said in a statement. SKS Chief Financial Officer S Dilli Raj said the present transactions generate liquidity of Rs 370 crore for SKS Microfinance, country's only listed micro-lender, and also bring in the concomitant capital relief.
Mumbai: Turning bullish on the country's only listed microfinance company, foreign investors have hiked their stake in SKS Microfinance to an all-time high of 31.77 percent in the July-September quarter-from a record low of 8.33 percent at the end of preceding three-month period.
The sharp increase in the shareholding of Foreign Institutional Investors (FIIs) coincided with a massive rally of 88 percent in the share price of Hyderabad-based SKS Microfinance between July and September this year.
Shares of SKS Microfinance were up 3.4 percent after Reserve Bank of India Governor D Subbarao said the central bank is likely to relax some of the guidelines for non-bank finance company-microfinance institutions (NBFC-MFIs).
SKS Microfinance is the only listed NBFC-MFI in India.
At an event in Chennai on Wednesday, Subbarao accepted that there are some bottlenecks as far as implementation of the new guidelines are concerned.
In particular, Andhra Pradesh-based MFIs, saddled with huge losses, large NPAs (non-performing assets) and eroded capital, are facing an especially acute problem in complying with the capital and provisioning norms. RBI is working on resolving these issues, so that MFI operations can get back on track, he was quoted as saying in a report in the Business Standard.
SKS Microfinance, the only listed non-banking finance company-microfinance institution in the country, has warned that it may incur a loss of Rs 30-50 crore in April-June and continue the adverse financial performance the entire year.
The company has attributed the loss to a non-redeployment of Rs 690 crore which has been maintained as cash and bank balances.
An increase in the amount of loans assigned by SKS Microfinance Limited towards the end of the quarter ended March 31, 2012 resulted in increased levels of cash and bank balances of about Rs. 6,899.8 million as of March 31, 2012, the company said in a stock exchange filing today.
Hyderabad: SKS Microfinance today said it has received a showcause notice from authorities demanding Rs 342 crore service tax.
The company has received show-cause notice from service tax authorities on October 23 to explain as to why the assignment of portfolio loans should not be classified under recovery service agent and the related income from the asset assignment transaction should not be subjected to service tax, SKS Microfinance said in a statement.
The SCN (showcause notice) relates to the period FY 2007-08 to FY 2011-12 and indicates an amount of Rs 3424.94 lakh as service tax on the income on asset assignment during the said period, it added.
Mumbai: SKS Microfinance today said it has raised Rs 200 crore by selling loans to a state-run bank through a securitisation deal.
This is the first major deal in the troubled microfinance sector after the Reserve Bank issued revised securitisation guidelines for non-banking finance companies in August.
As part of the deal, SKS, which is the only listed MFI, said, it has downloaded the receivables from microloans extended to over 2,60,000 rural women to a special purpose vehicle and pass through certificates, have been purchased by a public sector bank.
