SKS Microfinance posted a net loss of Rs 218.74 crore for the quarter ended June 30, 2011, as write-offs and provisions jumped 15 times to Rs 183.66 crore from Rs 11.96 crore in the comparable period last year. It reported a net profit of Rs 66.7 crore in Q1 of 2010-11.
The listed microlender’s total income in the quarter fell 47 per cent to Rs 163.55 crore from Rs 306.56 crore.
Following the promulgation of the AP Microfinance Institution (Regulation of Money Lending) Act on January 1, 2011, it said the frequency of joint liability group repayments had changed from weekly to monthly.
The company also presented ‘re-assessed estimates’ of its portfolio in Andhra Pradesh, in the light of what it called ‘an evolving environment’ resulting from the new MFI law in the state.
The board decided to make a QIP of eligible securities up to Rs 900 crore by issue of equity shares and/or any securities convertible into equity shares to qualified institutional buyers.