SKS Microfinance Presentation

SKS Microfinance Presentation

SKS Microfinance

SKS Microfinance

SKS Microfinance - 308

SKS Microfinance - 308

SKS Microfinance, Shriram Transport Finance

SKS Microfinance, Shriram Transport Finance

SKS Microfinance - 128 Target

 SKS Microfinance - 128 Target

India Microfinance - Better Times?

India Microfinance - Better Times?

SKS Microfinance

SKS Microfinance

SKS Microfinance to cap RoA at 3%

SKS Microfinance Limited today reiterated its commitment to client protection by integrating customer grievance redressal into the business plan and by capping the Return on Assets at 3 per cent for the microfinance business. The Company plans to appoint a social sector veteran as its Ombudsman by the end of December 2011 to herald a new chapter in customer grievance redressal and customer protection in the microfinance industry. SKS Microfinance, which has been demonstrating its business agility in inventing innovative solutions with quickest implementation time-frames, also unveiled its plans to launch a wholly owned subsidiary for its non-microfinance business, seven months after diversifying into Sangam Stores, Mobile Handset Loans and Gold Loans. The Company plans to invest Rs. 150mn in the next three years in order to align its customer grievance redressal and client protection practices with globally recognised benchmarks. The investment will drive a five-pronged customer protection strategy: 1. privacy of client data; 2. transparent and responsible pricing; 3. mechanism for redressal of grievances; 4. avoidance of over-indebtedness among borrowers; and 5. appropriate collection practices. In order to achieve the above-mentioned client protection objectives, SKS will implement the following in a time-bound manner: 1. appointing a panel of national and international experts who will oversee all key customer grievance redressal and customer protection initiatives; 2. upgradation of systems, processes and human resource training; 3. seeking external validation for key client protection practices including pricing transparency, customer grievance redressal and ethical staff behaviour among others; 4. realigning the employee incentive system by integrating customer grievance redressal and customer protection into the KRAs; and 5. appointment of dedicated talent.

SKS Microfinance hits 5% upper circuit

SKS Microfinance' hits 5% upper circuit, touching the monthly high of Rs112.95, as the company is planning to launch a wholly-owned subsidiary for non-microfinance businesses. Seven months ago, the company diversified into new businesses like Sangam Stories, mobile handset loans and gold loans.

The company plans to invest Rs15 crore in the next three years in order to align its customer grievance redressal and client protection practices with globally recognised benchmarks. “The investment will drive a five-pronged customer protection strategy, which includes privacy of client data, transparent and responsible pricing, mechanism for redressal of grievances, avoidance of over-indebtedness among borrowers and appropriate collection practices,” it said in a statement.

Story of SKS Microfinance

By Namrata Acharya/Business Standard

Vikram Akula was the golden boy of microfinance when he launched his company SKS. How did things go so horribly wrong?.

The story of Vikram Akula is almost like a classic Greek tragedy with epic peaks, troughs and betrayals that could easily make up a Hollywood movie. Akula remains a controversial character, whose very name incites admiration and criticism in equal measure. Some say that he gave birth to the microfinance industry as we know it in India. Others say that his model of lending, pioneered by his company SKS Microfinance, gave birth to an almost unquenchable thirst for profit, driven by a business model that has no place in ameliorating the state of the poor in India. Regardless of how people feel, one thing remains clear: Microfinance will never be the same without him.

SKS Microfinance to move up ?

SKS Microfinance is planning to raise the investment limit for Foreign Institutional Investors (FIIs) from the existing 24% to 74% of the company's paid up equity shares. The decision will be taken in the Extraordinary General Meeting, scheduled on Dec 21, 2011. The move is aimed at attracting foreign investors to the company. As on September 2011, FIIs were holding 19.02% of the paid up capital (decreased by 156 bps sequentially).

We feel that this decision by the company is surprising, not because the investment limit has been raised, but on account of the fact that in the past, FIIs have continuously sold of their shares, bringing down their stake

SKS Microfinance - Pain over ?

SKS Microfinance - Pain over ?

SKS Microfinance

SKS Microfinance

Bosch, ABB, SKS Microfinance

Bosch, ABB, SKS Microfinance

SKS Microfinace to raise money

Country's largest MFI SKS Microfinance today said it will raise up to Rs 900 crore through issue of shares to institutional investors.

The board of the country's only listed micro finance company has approved issuing equity shares through qualified institutional placement (QIP) to raise up to Rs 900 crore, SKS said in a filing to the BSE today.

The board also approved raising the authorised capital of the company to Rs 135 crore from Rs 95 crore.

SKS Microfinance

SKS Microfinance

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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SKS Microfinance - what's up? and further views

Read through the AGM minutes of SKS Microfinance.

Here is my take on it.

All the resolutions seem normal

Vikram Akula has been retained the Chairman of the company. That should be good news for the company where rumors(?) have been floating that he is being asked to step down.

Since this fall in share price has been mostly based on the above reasons, see no reason for it to fall even further unless fundamentally its worse than what is being projected by the company.

I feel the stock should recover from hereon and should possibly reach earlier levels of around 500 odd.

I hold position in the stock and the above view may be biased.

SKS Microfinance leads gainers in 'A' group

JSW Energy, Emami, Glenmark Pharmaceuticals and Coal India are among the other gainers.

Shares of microfinance firm SKS Microfinance spurted 8.31% to Rs 587.60, extending its rally for the fourth straight session triggered by the finance ministry releasing the draft of a bill aimed at developing and regulating microfinance institutions. The stock topped the gainers in the BSE's 'A' group.

SKS Microfinance leads gainers in 'A' group

Motherson Sumi Systems, Dish TV India, Adani Enterprises and Gujarat State Petronet are among the other gainers.

Shares of microfinance firm SKS Microfinance spurted 10% to Rs 542.50, extending last week's surge triggered by the finance ministry releasing the draft of a bill aimed at developing and regulating microfinance institutions. The stock topped the gainers in the BSE's 'A' group.