SKS Microfinance at new low, down 57% in a month

SKS Microfinance has frozen at the lower circuit of 5% at Rs 230, which is also its lifetime low, to decline for the ninth straight day on the NSE. Around a combined 195,918 shares have changed hands on the counter till noon deals.

The stock has plunged 57% in the past one month, declining by 34% after Pramod Bhasin, ex-President and CEO of outsourcing firm Genpact, resigned from the board of the company with effect from August 12, 2011.

The only listed microfinance company had reported a net loss of Rs 219 crore for the first quarter ended June 2011, compared with a net profit of Rs 67 crore in the corresponding quarter of the previous fiscal.

Investors have lost three-fourth of their investments since listing after the Andhra Pradesh government introduced a new law to ban unfair debt collection practices, which impacted its loan recoveries and resulted in the company posting losses.

The company’s shares were listed at Rs 1,040 on August 16, 2010 against the issue price of Rs 985 a share after a successful public offering.