SKS Microfinance extends Tuesday's gains

SKS Microfinance rose 2.64% to Rs 201.90 at 13:06 IST on BSE, with the stock extending Tuesday's gains triggered by the company completing its eleventh securitization transaction of Rs 183.02 crore during the current financial year.

Meanwhile, the S&P BSE Sensex was up 74.48 points or 0.34% at 22,129.69.

On BSE, so far 2.01 lakh shares were traded in the counter as against average daily volume of 1.48 lakh shares in the past two weeks.

The stock hit a high of Rs 205.90 and a low of Rs 196.10 so far during the day. The stock had hit a 52-week high of Rs 213.60 on 7 March 2014. The stock had 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 25 March 2014, surging 7.69% compared with the Sensex's 5.77% rise. The scrip had, however, underperformed the market in past one quarter, sliding 4.61% as against Sensex's 4.86% rise.

Shares of SKS Microfinance (SKS) have risen 3.14% in two trading sessions from Rs 195.75 on 24 March 2014 after the company after market hours on 24 March 2014 said it has completed eleventh securitization transaction during the current financial year of Rs 183.02 crore. The stock had risen 0.48% to settle at Rs 196.70 on Tuesday, 25 March 2014.

With this, the total sum of securitizations completed for the fiscal year ending March 2014 (year to date) is Rs 1560.96 crore, SKS said in a statement.

SKS said that the entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines. The pool is rated AA (SO) by a leading rating agency signifying a 'high degree of safety regarding timely servicing of financial obligations'. Such instruments carry a very low credit risk, the company added.

SKS Microfinance's net profit galloped 1763.5% to Rs 21.43 crore on 54.8% growth in total income to Rs 139.66 crore in Q3 December 2013 over Q3 December 2012.

SKS Microfinance is a non banking financial company - micro finance institution (NBFC-MFI), registered and regulated by the RBI, whose mission is to provide financial services to low-income households. SKS operates across 15 states of India. They include: Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.

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