SKS Microfinance, an India-based microfinance institution, has reported a loss of INR 3.8 billion (USD 78.4 million) for the quarter ending September 30, 2011 [1]. SKS share prices dropped by as much as ten percent following the news. The firm’s shares have declined by 70 percent so far in 2011 [2]. SKS is India’s only publicly listed microfinance institution. It currently trades on the Bombay Stock Exchange [1].
SKS previously reported profits of around INR 800 million (USD 16 million) for the quarter ending in June. SKS’ total income fell to INR 1.2 billion (USD 24.5 million) for the quarter ending in September from INR 3.6 billion (USD 73.6 million) during the same quarter of the previous year.
About SKS Microfinance:
SKS Microfinance is a microfinance institution (MFI) that was launched in 1998. It delivers microfinance products through a group-lending model to impoverished women in India as a for-profit, non-banking finance company. SKS converted into a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Its equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. SKS currently trades on the Bombay Stock Exchange. According to 2010 data from the US-based nonprofit data provider Microfinance Information Exchange (MIX), SKS Microfinance holds total assets of USD 1.2 billion, a gross loan portfolio of USD 1.2 billion, approximately 6.6 million borrowers, return on assets (ROA) of 6.3 percent and return on equity (ROE) of 22.4 percent.
Sources and Additional Resources:
[1] Economic Times, “SKS Microfinance reports Rs 384 cr loss in Q2”, http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-news/sks-microfinance-reports-rs-384-cr-loss-in-q2/articleshow/10645187.cms…
[2] LiveMint.com, November 8, 2011, ” SKS Microfinance Shares Fall 10% on Sep Quarter Loss”, http://www.livemint.com/2011/11/08125920/SKS-Microfinance-shares-fall-1.html….
MicroCapital.org article, November 8, 2011, “MICROCAPITAL BRIEF: India’s SKS Microfinance to Raise $184m via Share Sale”, https://www.microcapital.org/microcapital-brief-india%E2%80%99s-sks-microfinance-to-raise-184m-via-share-sale/…
MicroCapital.org article, September 26, 2011, MICROCAPITAL BRIEF: Microfinance Institutions Move to Recover “Pre-Crisis” Loans Worth $1.4b in Andhra Pradesh, India”, https://www.microcapital.org/microcapital-brief-microfinance-institutions-move-to-recover-%E2%80%9Cpre-crisis%E2%80%9D-loans-worth-1-4b-in-andhra-pradesh-india/
MicroCapital.org article, August 1, 2011, “MICROCAPITAL BRIEF: Indian Microfinance Institution SKS Reports Quarterly Loss, Looks to Raise $200m Through Private Placements,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-sks-reports-quarterly-loss-looks-to-raise-200m-through-private-placements/…
MicroCapital.org article June 7, 2011, “MICROCAPITAL BRIEF: Paper Gains on Early Investment in SKS Microfinance Largely Evaporate For Sequoia Capital”, https://www.microcapital.org/microcapital-brief-paper-gains-on-early-inve…
MicroCapital.org article, February 8, 2011, “MICROCAPITAL BRIEF: Government of India’s Andhra Pradesh Considers Requiring Microfinance Institutions (MFIs) to Compensate Families of Suicide Victims”, https://www.microcapital.org/microcapital-brief-government-of-indias-andhra-pradesh-considers-requiring-microfinance-institutions-mfis-to-compensate-families-of-suicide-victims/
MicroCapital.org article, October 18, 2010, “MICROCAPITAL BRIEF: Andhra Pradesh Government Plans Legislation to Restrict Collection Practices of Microfinance Institutions (MFIs) After Rise in Suicides Among Borrowers”, https://www.microcapital.org/microcapital-brief-andhra-pradesh-government-plans-legislation-to-restrict-collection-practices-of-microfinance-institutions-mfis-after-rise-in-suicides-among-borrowers/
MicroCapital Universe Profile: SKS Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS…
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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