Public-listed microlender SKS Microfinance Ltd has completed a securitisation transaction worth Rs 215 crore ($34.8 million), as per a stock market disclosure.
This is the third microfinance securitisation during this financial year by SKS. The non-banking finance company concluded the second securitisation deal worth Rs 80.81 crore last Thursday and the first securitisation transaction worth Rs 321 crore was completed in September 2013.
"With this, the total sum of securitisations completed for FY-14 (YTD) is Rs 616.81 crore and is priced at a good 200 basis points lower than our cost of borrowing for the previous quarter," said S Dilli Raj, CFO, SKS Microfinance.
The firm has downloaded the receivables from micro loans extended to more than 2,50,000 rural women entrepreneurs to a special purpose vehicle and pass through certificates (PTCs) have been purchased by a major private sector bank. The entire pool, rated A1+ (SO) qualifies for priority sector treatment as per RBI's priority sector lending guidelines.
Notably, 27 per cent of the loan pool comprises women entrepreneurs from scheduled castes and scheduled tribes, 21 per cent from minorities, 37 per cent from backward castes and the remaining 14 per cent from women belonging to other castes. The entire pool comprises receivables from women entrepreneurs from weaker sections.
The pool comprises receivables from 14 non-Andhra Pradesh states and has been subjected to a seasoning of three months.
SKS Microfinance, the only listed micro-lender, operates across 16 states, including Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala, Punjab and Delhi.
In the July-September quarter, the company reported a net profit of Rs 16.34 crore compared with a loss of Rs 262.15 crore in the year-ago period. Also, total income from operations increased 67.5 per cent to Rs 129.95 crore in the quarter against the year-ago period.
SKS Microfinance scrip was quoting at Rs 179.35 per share, up 1.70 per cent in mid-day trades on the BSE in a weak Mumbai market on Thursday. The firm is backed by WestBridge Capital.
(Edited by Joby Puthuparampil Johnson)