In 2013-14, the country’s listed microlending institution SKS Microfinance expects to achieve a loan disbursal of Rs 4,800 crore, which is 50 percent more than last year. In 2012-13, the firm lent Rs 3,200 crore.
The company has regained its financial position which deteriorated in the wake of the crisis in the industry in Andhra Pradesh.
During Jan-Mar 2013, the firm witnessed its profit more than doubling to Rs 2.7 crore over previous quarter’s profit.
The firm reduced losses for full year at Rs 297 crore from Rs 1,360 crore a year ago. The income was down at Rs 332 crore from Rs 436 crore a year ago.
In 2013-14, the firm aims to raise incremental borrowings of Rs 3,600 crore, comprising of around Rs 1,200 crore from sale of loan book through securitisation deals and Rs 2,400 crore from term loans and other instruments.
The profitability strategy includes both operational and financial leverage wherein the micro-lender is targeting to improve fresh disbursals by some 50 percent without adding headcount in the 17 non-Andhra Pradesh states where it now has some 3.5 million borrowers, reports suggest.
The firm witnessed a fall in the cost of borrowing by 122 basis points at 12 percent by March-end from 13.2 percent in December, while collection efficiency has improved to 99.9 percent.
SKS, which currently has a networth of Rs 390 crore and over 32 percent of capital adequacy ratio, is not looking at raising any equity funds during the current fiscal.
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