SKS Microfinance gains after securitization deal

SKS Microfinance rose 2.17% to Rs 197.60 at 11:09 IST on BSE after the company said that it has completed the tenth securitization transaction during the current financial year of Rs 26.73 crore.

The announcement was made after trading hours on Wednesday, 19 March 2014.

Meanwhile, the BSE Sensex was down 42.52 points, or 0.19%, to 21,790.34.

On BSE, so far 1.07 lakh shares were traded in the counter, compared with an average volume of 3.23 lakh shares in the past one quarter.

The stock hit a high of Rs 199.80 and a low of Rs 194.80 so far during the day. The stock hit a 52-week high of Rs 213.60 on 7 March 2014. The stock hit a 52-week low of Rs 95.60 on 24 May 2013.

The stock had underperformed the market over the past one month till 19 March 2014, rising 3.31% compared with the Sensex's 5.36% rise. The scrip had, however, outperformed the market in past one quarter, rising 9.51% as against Sensex's 5.43% rise.

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

With this, the total sum of securitizations completed for the fiscal year ending March 2014 (FY 2014) (year-to-date) is Rs 1377.94 crore, SKS Microfinance said in a statement.

The company said that the entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines. The pool is rated A1+ (SO) by a leading rating agency signifying a very strong degree of safety regarding timely payment of financial obligations'. Such instruments carry the lowest credit risk, the company said.

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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