SKS Microfinance, an Indian microfinance institution (MFI), recently completed a securitization deal worth INR 3.21 billion (USD 50 million), selling microloan receivables to an undisclosed public-sector bank [1]. The liquidity generated from the transaction is to be used to extend microloans to 475,000 rural women entrepreneurs.
As of March 2013, SKS reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 414 million, a gross loan portfolio of USD 434 million, approximately 4.3 million borrowers, return on assets (ROA) of -15.8 percent and return on equity (ROE) of -73.4 percent. SKS shares trade on the Bombay Stock Exchange and India’s National Stock Exchange.
By Nisha Koul, Research Associate
About SKS Microfinance: SKS Microfinance is a for-profit microfinance institution (MFI) that was launched in 1998 in India. SKS converted into a public limited company in May 2009 and launched an initial public offering on July 28, 2010. It has since diversified into offering gold loans and microinsurance services but does not accept deposits. As of March 2013, SKS reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 414 million, a gross loan portfolio of USD 434 million, approximately 4.3 million borrowers, return on assets (ROA) of -15.8 percent and return on equity (ROE) of -73.4 percent. SKS shares trade on the Bombay Stock Exchange and India’s National Stock Exchange.
Sources and Additional Resources:
[1] SKS Microfinance Press Release, “SKS Microfinance Limited completes Rs. 321 crore securitization transaction,” http://www.sksindia.com/downloads/SKS-Microfinance-Limited-completes-Rs-321-crore-securitization-transaction-30-09-13-Press-Release.pdf
MicroCapital Story, April 11, 2013, “SKS Microfinance of India Completes Two Securitizations Totaling $41m,” https://www.microcapital.org/microcapital-brief-sks-microfinance-of-india-completes-two-securitizations-totaling-41m/
MicroCapital Story, March 3, 2013, “SKS Microfinance Completes $11.6m Securitization, Its Eighth in a Year,” https://www.microcapital.org/microcapital-brief-sks-microfinance-completes-11-6m-securitization-its-eighth-in-a-year/
MicroCapital Story, December 17, 2012, “SKS Microfinance of India Completes $10m Securitization, Stock Reaches 52-Week High,” https://www.microcapital.org/microcapital-brief-sks-microfinance-of-india-completes-10m-securitization-stock-reaches-52-week-high/
MicroCapital Universe Profile: SKS Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance
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