SKS completes ninth securitisation of Rs 80 crore

With this, the total sum of securitisations for FY14 is Rs 1,351 crore

SKS Microfinance Limited, the only listed micro finance institution (MFI) in the country, on Wednesday announced the ninth microfinance securitisation during the current financial year of Rs. 80.30 crore. With this, the total sum of securitisations completed for FY14 is Rs 1,351.21 crore.

SKS stated in a press release that it has downloaded the receivables from micro loans extended to 87,500 rural women entrepreneurs to a special purpose vehicle, and pass through certificates (PTCs) have been purchased by a leading private sector bank. The entire pool comprises receivables from women entrepreneurs belonging to weaker sections, and qualifies for priority sector treatment as per RBI's priority sector lending guidelines.

The pool is rated AA (SO) by a leading rating agency signifying a "high degree of safety regarding timely servicing of financial obligations". Such instruments carry a very low credit risk.

The pool is structured with geographical diversity and comprises receivables from 10 non-Andhra Pradesh states. It has been subjected to a seasoning of three months, the MFI said.

SKS scrip was trading on BSE at Rs 204.15, up 2.41% over the previous close of Rs 199.35.

SKS is among the largest MFIs in India with presence across 15 states covering 100,000 villages. The states include Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.