SKS Microfinance surges over 7%; M-cap improves by Rs 395 cr

Shares of SKS Microfinance today settled with gains of more than 7 per cent after the company slashed its interest rate to 19.75 per cent.
SKS Microfinance today further trimmed its interest rate by 1 per cent to 19.75 per cent with effect from December 7 for all future disbursals.
Reacting to the development, shares of the company opened at Rs 438.25, then gained further ground and touched an intra-day high of Rs 456.10.
At the end of the trading session, the stock was quoted at Rs 454.65, up 7.23 per cent on the BSE.
On the NSE, the stock opened at Rs 438, then jumped 7.73 per cent to Rs 456.85 and finally ended the day at Rs 454.60.

Following the uptick in the counter, the market capitalisation of the company improved by Rs 395 crore to Rs 5,769.97 crore.

This is the fourth time the company has reduced interest rate since October 2014. It had earlier slashed rate by 1.25 per cent in September.
Market experts said the uptick in the counter was largely on the back of the interest rate cut.
"This is the fourth interest rate reduction, aggregating 4.8 per cent, announced by the company since October 2014. The reductions are consistent with the company's policy of passing on the cost advantages accruing from reduction in the cost of borrowing and economies of scale to its borrowers", SKS Microfinance said in a BSE filing.