SKS Micro jumps after RBI classifies as NBFC-MFI

SKS Microfinance rose 3.54% to Rs 176.80 at 9:59 IST on BSE after the company said that the Reserve Bank of India has classified the company as non-banking financial company-micro finance institution with effect from 18 November 2013.

The announcement was made after market hours on Wednesday, 20 November 2013.

Meanwhile, the BSE Sensex was down 243.85 points, or 1.18%, to 20,391.28.

On BSE, 2.61 lakh shares were traded in the counter compared with average volume of 2.99 lakh shares in the past one quarter.

The stock hit a high of Rs 181.70 and a low of Rs 171 so far during the day. The stock hit a 52-week high of Rs 198.90 on 13 December 2012. The stock hit a 52-week low of Rs 95.60 on 24 May 2013.

The stock had outperformed the market over the past one month till 20 November 2013, rising 17.39% compared with the Sensex's 1.19% fall. The scrip had also outperformed the market in past one quarter, rising 51.71% as against Sensex's 13.09% rise.

The small-cap company has an equity capital of Rs 108.21 crore. Face value per share is Rs 10.

SKS Microfinance announced that the Reserve Bank of India (RBI) has classified the company as non-banking financial company-micro finance institution (NBFC-MFI) (non-deposit taking) from its existing status of non-banking financial company (non-deposit taking) systematically important (NBFC-ND-SI), effective from 18 November 2013.

SKS Microfinance reported net profit of Rs 16.34 crore in Q2 September 2013 as against net loss of Rs 262.15 crore in Q2 September 2012. Total income from operations rose 67.54% to Rs 129.95 crore in Q2 September 2013 over Q2 September 2012.

SKS Microfinance is a non-banking finance company (NBFC), registered and regulated by the Reserve Bank of India, whose mission is to provide financial services to low-income households.

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