SKS Microfinance, beleaguered Indian microfinance firm is likely to write off its entire outstanding loan portfolio of Rs 822 crore in Andhra Pradesh, its biggest market. The company plans to write off Rs 678 crore of loans.
The company has written off the outstanding loans in AP and brought them down from Rs 1,500 crore to Rs 822 crore. In addition, there is a cushioning of deferred tax of Rs 220 crore, and if that is factored in the total outstanding comes down further. Further the company is also pinning its hopes on non-AP markets, where it sees a fresh demand of at least Rs 10,000 crore.
SKS, along with other microfinance institutions (MFIs), had plunged into serious crisis after AP government circulated a law to rein in MFIs in October 2010 that restricted lending and recovery by MFIs.
SKS Microfinance is a non-banking finance company (NBFC), registered and regulated by Reserve Bank of India, whose mission is to eradicate poverty by providing financial services to the poor.
