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SKS Microfinance, the largest and the only listed microfinance institution (MFI) in the country, on Tuesday said it was planning to further reduce interest rates to 24 per cent in Andhra Pradesh and 18 other states.

Last month, it had reduced rates from 26.69 per cent to 24.55 per cent in Andhra Pradesh, following the promulgation of the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Ordinance 2010. The company said interest reduction would have an impact on interest income and profitability not only in Andhra Pradesh but also in other states.

According to an SKS spokesperson, the company has 555 branches and 71,000 village centres in the state. Excluding Andhra Pradesh, the company has 2,09,410 centres across the country.SKS said it was in talks with the state government and key regulators like the Reserve Bank of India and the Ministry of Finance for “rectifying the onerous aspects of the ordinance and its implementation.”

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