SKS to cap RoA at 3%, stock up 5%

SKS Microfinance has surged by 5% at Rs 118 after the company announced that it will cap the Return on Assets (RoA) from its main business at 3%, settling for nearly half the profit growth it enjoyed before hitting the capital market in 2010.

SKS also plans to hive off its gold loan business into a separate subsidiary and expand its non-microfinance business.

In intra-day deals, the stock opened at Rs 117 and touched the high of Rs 118.50. The counter has seen trades around 151,599 shares so far on the BSE.