SKS Microfinance bounces back, stock up 10 per cent

Halting a 12-day-long freefall on the bourses, SKS Microfinance made a comeback and jumped 10 per cent in morning trade on the National Stock Exchange on Tuesday.

Shares of the company touched an early high of Rs 298.60 after hitting their lowest-ever level of Rs 255 apiece on NSE this morning. Later, the stock was trading at Rs 294.40, up 8.45 per cent from the previous close.

On the Bombay Stock Exchange (BSE) too, the counter of the country's largest microfinance player saw a correction and the scrip shot up 9.63 per cent to touch a high of Rs 296.90.

In the previous 12 trading sessions, the stock lost nearly 48 per cent. On the volume front, over 69 lakh shares of the company were traded on the bourses in morning trade.

Earlier, global financial services majors JP Morgan and Credit Suisse had downgraded the company's stock , adding to its woes.

The microfinance company last week reported a net loss of Rs 70 crore for the fourth quarter ended March on account of lower income from operations and high credit costs.

For 2010-11, its net profit declined 36 per cent to Rs 111.63 crore from Rs 173.95 crore in the previous financial year, the company said in a statement.

Meanwhile, BSE benchmark Sensex was trading at 18,657.95, down 128.99 points, in noon trade.