SKS Microfinance bounces back, stock up 10%

Shares of SKS Microfinance bounced back today after four sessions of consecutive decline, surging by 10 per cent in morning trade on the Bombay Stock Exchange after the company said it has sufficient liquidity for disbursals and bank repayments.

Though the scrip opened on a poor note, it soon rallied into positive terrain after SKS Chairman Vikram Akula said the company is well-capitalised and was not as badly impacted by the Andhra Pradesh ordinance reining in MFIs as suggested by some quarters.

Boosted by the news, the stock jumped by 9.99 per cent to touch an early high of Rs 704.75 on the BSE.

Yesterday, the company tumbled by 20 per cent to hit the lower limit of Rs 639.45.

In the last four trading sessions, the scrip has witnessed a whopping 31 per cent decline.

On the National Stock Exchange, the stock was quoting at Rs 691.75, up 8.19 per cent.

In an interview to a private TV news channel, SKS Chairman Vikram Akula had said though the Andhra Pradesh ordinance has some impact on MFIs, his company is well-oiled on the back of a strong balance sheet and capital adequacy ratio.