SKS Microfinance plans to revamp its business model. It plans to raise Rs 4,000-5,000 crore in 2011-12. It will focus on gold loans and enter other non-core streams, even if it it means setting up a subsidiary. The plan for 2011-12 included giving more gold loans, lending to kirana stores and providing loans for buying mobile phones. The company has already tied up with Metro Cash & Carry and Nokia for the latter two initiatives. Microfinance loans account for 73 per cent of SKS’ total portfolio.
A part of the funds raised would be used to expand the network. For example, Rs 150 crore would be invested to transform 400 branches into gold loan branches. SKS has just five gold loan branches at present. SKS plans to increase the number of kirana stores it finances to 20,000 from 3,800 and sell one million mobile phones by the end of the financial year. It would also offer larger loans to reduce operational costs. In the last quarter, SKS wrote off Rs 38 crore in the state, where the recovery rate fell to 10.5 per cent.crackcrack
| Company Name | CMP |
|---|---|
| Bajaj Finance | 908.70 |
| Shriram Finance | 1036.50 |
| Aditya Birla Capital | 340.20 |
| Chola Invest & Fin. | 1579.65 |
| Tata Capital | 337.60 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: