SKS Microfinance concludes two securitisation transactions

Deals aggregate to Rs 226 crore, completes 12 securitisation transactions with the deals

SKS Microfinance Limited, the only listed microfinance institution in the country, on Monday announced the conclusion of two microfinance securitisation transactions aggregating Rs 226 crore.

With this, the company has completed 12 securitisation transactions with seven funding partners aggregating to Rs 1,207 crore during 2012-13.

In addition, SKS has raised incremental debt of Rs 1,680 crore and raised fresh equity of Rs 263.50 crore, taking the total incremental funding inflow for FY13 to Rs 3,150 crore, which is more than double the Rs 1,434 core raised for FY12.

These 12 securitisation transactions helped SKS fund around 1.6 million micro loans extended to borrowers belonging to economically weaker sections. All transactions qualify for the priority sector treatment for the purchaser banks, the company stated in a press release.

“Securitisation is emerging as the preferred instrument of confluence for financial inclusion as it amalgamates the funding capability of banks with the credit delivery skills of Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) like SKS Microfinance Limited,” said S Dilli Raj, chief financial officer, SKS Microfinance.

According to Raj, the most satisfying aspect of these  transactions is the community break-up of the beneficiaries -- 22% of the borrowers are Scheduled Castes, 5% Schedule Tribes and 17% minorities.

SKS operates across 17 states of India.