SKS Microfinance Ltd, is in the process of securitising Rs 700 crore of its loan portfolio in States other than Andhra Pradesh. The objective behind the move is to raise funds and increase the capital-to-risk-weighted-assets ratio.SKS will be the first MFI to securitise its loan portfolios after the industry was hit by the allegations of excesses by recovery agents. Subsequently, the MFI Regulation Act was enacted in AP last year.
SKS had taken up securitisation when banks had almost stopped funding MFIs in the wake of the trouble in AP, which accounted for over 30 per cent of the Rs 33,000-crore portfolio of MFIs in the country. Before October 2010, banks were actively buying loan portfolios of MFIs, as they can be shown under the mandatory agri-portfolio according to the Reserve Bank of India guidelines.
| Company Name | CMP |
|---|---|
| Bajaj Finance | 961.30 |
| Shriram Finance | 1002.45 |
| Aditya Birla Capital | 375.90 |
| Chola Invest & Fin. | 1694.70 |
| Tata Capital | 371.55 |
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