Hyderabad-based SKS Microfinance is planning to raise Rs 1,300 crore, mainly through capital market debt instruments. For the current financial year, the company’s fund requirement is Rs 5,000 crore, of this Rs 1,715 crore has already been raised.
S Dilli Raj, chief financial officer, SKS Microfinance, who was here to launch company’s operation in Tamil Nadu, said the company had already tied up funds for Rs 2,000 crore, and another around Rs 1,300 crore was yet to be raised.
The company’s debt-equity mix stands at Rs 770 crore and Rs 3,000 crore, respectively.
The company’s cumulative disbursement was Rs 10,538 crore till now, and actual portfolio outstanding at Rs 3,389 crore, said Raj. The company’s return on assets stands at 4 per cent. He added, collection efficiency was 99.5 per cent, “Our gross NPA of 0.28 per cent and net NPA of 0.15 per cent are probably the lowest in the financial sector as a whole.”
The company reported a profit after tax of Rs 55 crore for six months ended September 30. Currently, the company has an equity of $175 million and would raise money as and when required. Its capital adequacy was around 25 per cent, said Raj.
The company is also evaluating new avenues. Recently, it commenced a pilot project in Orissa where it helps its members to buy solar lights for captive purpose. “It has been a successful project, we would like to expand to other parts of the country now, for which, we are scouting for a partner who can supply these lights,” said Mamta Bharadwaj, vice-president – communications and marketing, SKS Microfinance.
She added that so far the company has given loans to members to buy 68,000 cell phones by partnering with Nokia and another pilot currently carried out in Hyderabad whereby the company has tied-up with Cash and Carry to supply materials for SKS Microfinance members. “Currently, we have about five lakh members who run kirana shops, of which, 1400 in Hyderabad have been selected for the pilot,” she said.
It might be noted the company had tied up with Bajaj Allianz to offer micro-insurance products and, in the last 12 months, 2.5 million policies were sold, she added.