SKS Microfinance plunges 10% on Q1 loss

SKS Microfinance has plunged 10% to Rs 470 after reporting net loss of Rs 219 crore for the first quarter ended June 30, 2011, due to impact of Andhra Pradesh Microfinance Act and re-classification of assets and provisioning. The company had reported a net profit of Rs 66.70 crore in the corresponding quarter of previous year.

Total income too declined from Rs 314 crore for the quarter ended June 30, 2010 to Rs 178 crore for the quarter ended June 30, 2011, the company said in a filing to the stock exchanges.

Meanwhile, the board of directors of the company approved to raise up to Rs 900 crore by issue of equity shares and / or any securities convertible into equity shares through Qualified Institutional Placement (QIP).

Around 120,000 shares have changed hands in opening deals on both the exchanges.