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SKS Microfinance gets nod for its proposal to apply for a Small Finance Bank

30 Jan 2015 Evaluate

The Board of Directors of SKS Microfinance has approved its proposal for making an application to the Reserve Bank of India (RBI) for grant of a Small Finance Bank licence.

Meanwhile, the company’s portfolio excluding the states of Andhra Pradesh and Telangana registered a 35% year-on-year increase to Rs 3,195 crore from Rs 2,364 crore in Q3-FY14 (5% quarter-on-quarter growth -- Rs. 3,043 crore in Q2-FY15).

In Q3-FY15, loan disbursements stood at Rs 1,544 crore as against Rs 1,693 crore in Q2-FY15 (Rs 1,399 crore in Q3-FY14) while net interest income was at Rs 96 crore (Rs 110 crore in Q2-FY15, Rs 68 crore in Q3-FY14). The Company’s PAT stood at Rs 41.1 crore in Q3-FY15 (Rs 21.4 crore in Q3-FY14, Rs 56.8 crore in Q2-FY15).

The company had incremental draw-downs of Rs. 931 crore in Q3-FY15 (Rs 1,100 crore Q2 FY15) besides issuing Commercial Paper of Rs. 175 crore and completing securitization transactions of Rs. 391 crore rated as A1+ and AA (SO). As of December 31, 2014, SKS Microfinance had a net worth of Rs 998 crore and capital adequacy of 34.6% (without the Reserve Bank of India dispensation on the Andhra Pradesh and Telangana provisioning). Cash and cash equivalents stood at Rs 746 crore.

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