The total incremental funding inflow received by SKS Microfinance in 2012-13 more than doubled to Rs 3,150 crore from Rs 1,434 core in 2011-12.
The funding inflow in 2012-13 includes Rs 1,207 crore received through 12 securitisation transactions with seven funding partners, an incremental debt of Rs 1,680 crore and fresh equity infusion of Rs 263.50 crore.
Towards the end of 2012-13, the only listed microfinance institution in the country announced the conclusion of two securitisation transactions aggregating Rs 226 crore.
These 12 securitisation transactions helped SKS fund around 1.6 million micro loans extended to borrowers belonging to economically weaker sections.
According to a press release of SKS, all transactions qualify for the priority sector treatment for the purchaser banks.
S Dilli Raj, chief financial officer of SKS Microfinance remarked that securitisation was emerging as the preferred instrument of confluence for financial inclusion. This is because securitisation amalgamates the funding capability of banks with the credit delivery skills of Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) like SKS Microfinance, he said.
According to Raj, the most satisfying aspect of these transactions is the community break-up of the beneficiaries — 22 percent of the borrowers are Scheduled Castes, 5 percent Schedule Tribes and 17 percent minorities.
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