SKS Microfinance wants to set up small bank; Q3 net doubles

SKS Microfinance today reported nearly two-fold increase in net profit at Rs 41.1 crore for October-December quarter and also said it will seek licence from RBI for setting up a small finance bank.
The city-headquartered micro lender said its board of directors has approved a proposal to apply for small finance bank licence.
"The board of directors of SKS Microfinance today approved the company's proposal for making an application to the Reserve Bank of India for grant of a small finance bank licence," the only-listed microfinance institution in the country said in a statement.
Meanwhile, the company said its profit after tax for the quarter ended December 31, 2014 stood at Rs 41.1 crore as against Rs 21.4 crore in the same period last year.

The net interest income was at Rs 96 crore during the quarter under discussion, up from Rs 68 crore in Q3 FY14.
Its portfolio, excluding Andhra Pradesh and Telangana, their key markets, registered a 35 per cent year-on-year increase to Rs 3,195 crore from Rs 2,364 crore in Q3 FY14 (5 per cent quarter-on-quarter growth from Rs 3,043 crore in Q2 FY15)," SKS said.

In the October-December period, loan disbursements stood at Rs 1,544 crore, up from Rs 1,399 crore in the third quarter of 2013-14.
As of December 31, 2014, SKS Microfinance had a net worth of Rs 998 crore and capital adequacy of 34.6 per cent (without the RBI dispensation on the Andhra Pradesh and Telangana provisioning).

Cash and cash equivalents stood at Rs 746 crore. The un-availed deferred tax benefit of Rs 506 crore will be available to offset tax on future taxable income, the statement added.