SKS Micro concludes Rs 321 securitisation transaction

Present transaction enables the company to extend micro loans to 475,000 rural women entrepreneurs

SKS Microfinance Limited, the only listed microfinance institution (MFI) in the country, has concluded securitisation transaction for Rs 321 crore with a major public sector bank.

According to the MFI, the transaction is possibly the first substantial securitisation deal in microfinance sector during the current financial year.

"The present transaction generates liquidity of Rs 321 crore for SKS Microfinance Limited, and enables the company to extend micro loans to 475,000 rural women entrepreneurs" , SKS chief financial officer, S Dilli Raj, stated in a press release on Monday.

Stating that SKS was able to complete the first securitisation transaction in Q2 itself this year as against Q3 last year, Raj said that the significant aspect of the transaction to be noted was that securitisation was emerging as meaningful transaction tool.

SKS, a non-banking finance company, currently operates across 16 states.