SKS Microfinance removed from A group, stock dips 5%

SKS Microfinance has frozen at the lower circuit of 5% at Rs 222 on the fourth consecutive day on the bourses. The stock, with twenty other scrips, was shifted from the elite A group to B group by the Bombay Stock Exchange (BSE) with effect from October 10, 2011.

According to media reports, the microfinance sector in the country has shrunk by about 40% in past one year after the crisis began to unfold in Andhra Pradesh.

Analysts expect SKS, which posted a loss of Rs 219-crore for the quarter ended June 30, 2011, due to losses in Andhra Pradesh to announce further write-offs in its Andhra Pradesh portfolio for the second quarter ended September 30, 2011.

A combined 69,560 shares have changed hands on the counter till 1028 hours. There are pending sell orders for 27,130 shares on both the exchanges.