SKS completes Rs 80.30 cr securitisation transaction

Microlender SKS Microfinance on Wednesday said it has completed another round of securitisation by passing on receivables of Rs 80.30 crore to a private sector bank.

Receivables from loans extended to 87,500 lakh rural women entrepreneurs, which qualify as priority sector lending under the RBI guidelines, were passed on to a special purpose vehicle and the pass through certificates have been purchased by a private sector bank, it said.

Under the priority sector lending guidelines, banks are mandated to lend nearly 40 per cent of their annual lending to deprived sections of society. Most banks fail to reach the target, failing which the differential funds get parked in the low yielding rural infrastructure guarantee funds.

This is the ninth round of securitisation carried out by the Hyderabad-based company this fiscal and takes the total amount raised through such transactions to Rs 1,351.21 crore, the company said.

The loans are from 10 non-Andhra Pradesh states, it said.

It may be noted that Andhra Pradesh, which was once the most lucrative microfinance market, has been facing massive issues after allegations of coercive practices used by micro-lenders allegedly led to suicides.

The entire pool comprises of receivables from women entrepreneurs from society's weaker sections, it said.

Meanwhile, SKS Microfinance scrip gained 0.33 per cent to close at Rs 200 apiece on the BSE on Wednesday.