SKS Microfinance, India's only-listed micro lender is facing collection-related problems in parts of West Bengal and Gujarat due to local and process-related issues. The company has been already hit by the Andhra Pradesh microfinance crisis.
The company’s collection from these parts has dropped to about 86% as against over 92% collections. West Bengal is the third largest market for the Hyderabad-based company which operates in 18 States.
The problem is now seen in five districts of West Bengal and three in Gujarat. SKS has 8.71 lakh and 2 lakh clients in West Bengal and Gujarat, respectively, of a total client-base of about 62 lakh. Of this, 19.25 lakh clients are in Andhra Pradesh alone.