Public-listed microlender SKS Microfinance Ltd has completed a securitisation transaction worth Rs 55 crore ($8.9 million), as per a stock market disclosure.
The latest tranche is the fourth and smallest microfinance securitisation during this financial year by SKS. The non-banking finance company concluded the two other securitisation deals worth Rs 80.81 crore and Rs 215 crore, respectively, early this month. The first securitisation transaction worth Rs 321 crore was completed in September.
The total quantum of securitisation completed for FY14 moves to Rs 671.81 crore or around $107 million.
The firm has downloaded the receivables from micro loans extended to more than 72,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a private sector bank. The entire pool, rated A1+ (SO) qualifies for weaker section treatment as per the RBI’s priority sector lending guidelines, the firm said on Tuesday.
The pool comprises receivables from 13 non-Andhra Pradesh states and has been subject to a seasoning of three months.
WestBridge Capital-backed 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 193.25 per share, down 1 per cent in mid-day trades on the BSE in a flat Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)