SKS Microfinance expands into other businesses

SKS Microfinance is reportedly scaling up its non-core businesses of financing Samgam stores, which are retail grocery stores owned by poor women, and increasing its gold lending operations in efforts to diversify its revenue stream. In the Samgam scheme, SKS Microfinance stores lend to Samgam stores and connects them with wholesale suppliers such as Hydera bad-based Metro Cash and Carry India Private Limited. SKS Microfinance receives some commission from the suppliers. Mr M R Rao, managing director and chief executive officer of SKS Microfinance, said, “We are scaling up our pilot on the ‘Samgam’ stores scheme and expanding it to Bangalore. Subsequently, this may be extended to all other States later.” SKS is also considering increasing the number of its branches that offer gold loans. Mr Rao added, “The number of [gold loan] branches is being increased from the present five to 20 as there is huge demand-supply gap in rural micro credit.”

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