You are here: Home » Finance » News » Others
Business Standard

SKS securitises Rs 354 crore

BS Reporter  |  Hyderabad 

SKS Microfinance, the only listed microfinance institution (MFI) in the country, said it had securitised Rs 354 crore of receivables from 18 states, excluding Andhra Pradesh. The securitisation was carried out through a major public sector bank.

Securitisation is the process of pooling loans and turning these into marketable securities that can be sold to investors such as banks to raise funds.

"This is the largest rated pool assignment transaction in the Indian microfinance history," the company said at a press release on Monday.

Earlier this month, SKS had completed another securitisation transaction worth Rs 243 crore. The current securitisation is the eighth such transaction carried out by the MFI after the enactment of the Andhra Pradesh MFI Act.

"The Rs 354-crore transaction demonstrates funding concerns raised after the Andhra Pradesh MFI Act are behind the company," said chief financial officer Dilli Raj.

SKS said the pool was well diversified, with an average loan amount of Rs 10,717. The pool is rated CARE A1+(SO) (highest safety) by credit rating agency CARE.

The company said it had already drawn down the first tranche of Rs 78.7 crore, comprising receivables from micro women borrowers from the weaker sections, as directed by the Reserve Bank of India.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 28 2012. 00:27 IST