India’s lone-listed micro lender SKS Microfinance Limited has completed its first securitisation for the current financial year worth Rs 316.25 crore (around $ 51 million), according to a stock market disclosure.
The entire pool (of loans securitised) qualifies for priority sector treatment as per the Reserve Bank of India's (RBI) guidelines.
The pool has been rated "AA (SO)" by a leading rating agency, signifying a “high degree of safety regarding timely servicing of financial obligations”, the company said in the disclosure. Such instruments carry very low credit risk, it added.
The firm, once India’s largest microfinance firm, counts WestBridge Capital as its largest shareholder.
In the last financial year ended on March 31, 2014, the company had completed 13 securitisation transactions worth Rs 1,816.26 crore.
SKS Microfinance operates across 16 states, including Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala, Punjab and Delhi.
SKS Microfinance shares were trading at Rs 316.55 each at 12:32 PM, up 0.03 per cent on the BSE in strong Mumbai market on Wednesday.
(Edited by Joby Puthuparampil Johnson)