SKS Microfinance spurts on RBI's borrowing policy

SKS Microfinance rose 5.79% to Rs 500.60 at 13:38 IST on BSE after the central bank suggested revising borrowing policy for an individual by micro-finance institutions.

Meanwhile, the BSE Sensex was down 162.29 points, or 0.57%, to 28,342.17.

On BSE, so far 5.92 lakh shares were traded in the counter, compared with an average volume of 2.61 lakh shares in the past one quarter.

The stock hit a high of Rs 502.40 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 466.80 so far during the day. The stock hit a 52-week low of Rs 224.70 on 5 May 2014.

 

The stock had underperformed the market over the past one month till 6 April 2015, rising 3.13% compared with 3.21% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 15.33% as against Sensex's 5.62% rise.

The mid-cap company has an equity capital of Rs 126.29 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) after the monetary policy review today, 7 April 2015, suggested upward revision in the limit relating to total indebtedness of the borrower, eligible rural and semi-urban household annual incomes and loan amounts to be disbursed in the first cycle and in subsequent cycles.

The RBI suggested raising total indebtedness of a borrower, excluding educational/medical expenses, to Rs 1 lakh from the current limit of Rs 50,000.

The limit of loan disbursed to a borrower, with a rural household annual income, was increased to Rs 1 lakh from Rs 60,000 currently. The limit of loan disbursed to a urban and semi-urban household income was raised to Rs 1.60 lakh from Rs 1.20 lakh currently.

The limit of disbursement of the loan amount was increased to Rs 60,000 (enhanced from Rs 35,000 currently), in the first cycle and Rs 1 lakh (enhanced from Rs 50,000 currently) in subsequent cycles.

Detailed guidelines will be issued shortly, RBI said in a statement.

SKS Microfinance's net profit rose 91.62% to Rs 41.05 crore on 48.13% increase in total income to Rs 206.89 crore in Q3 December 2014 over Q3 December 2013.

SKS Microfinance is among the largest microfinance companies in India with presence across 16 states covering 1,00,000 villages. The company's mission is to provide financial services to the economically weaker sections.

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