Microfinance institution SKS Microfinance has completed a securitisation deal worth Rs 80.81 crore.
"SKS Microfinance has downloaded the receivables from micro loans extended to 100,850 rural women entrepreneurs to a special purpose vehicle, and pass through certificates (PTCs) have been purchased by a major private sector bank,” the company said in a statement filed with the Bombay Stock Exchange.
PTC is a document that allows the holder to receive payments or principal and interest from the underlying pool of mortgages.
The non-banking finance company said as per RBI’s guidelines, the entire pool qualifies for priority sector treatment.
"Notably, 30 per cent of the pool is from Scheduled Caste and Scheduled Tribe entrepreneurs; 16 per cent from minorities; 37 per cent from Backward Caste and the remaining 17 per cent from women belonging to other castes," the statement said, adding that the pool comprises receivables from women entrepreneurs from weaker sections.
The pool is rated 'AA (SO)' signifying 'high degree of safety regarding timely servicing of financial obligation' by a leading rating agency.
The pool comprises receivables from 12 states other than Andhra Pradesh.
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% to Rs 129.95 crore in the quarter against the year-ago period.
SKS Microfinance currently operates across 15 states—Karnataka, Odisha, Madhya Pradesh, Andhra Pradesh, Maharashtra, Bihar, Uttar Pradesh, Rajasthan, Uttaranchal, Haryana, West Bengal, Jharkhand, Chhattisgarh, Kerala and Punjab.
(Edited by Joby Puthuparampil Johnson)