SKS Micro completes securitisation transaction of Rs 243cr

SKS Microfinance Ltd today said it has completed second securitisation transaction for a pool value of Rs 243.08 crore.
"SKS Microfinance today completed the second securitisation transaction for a pool value of Rs 243.08 crore during 2015-16. With this transaction, the total sum of securitisation completed during 2015-16 is Rs 326.73 crore," it said in a filing on the BSE.
SKS said the entire pool qualifies for priority sector treatment as per RBI's priority sector lending guidelines.
It said the pool value has a high degree of safety regarding timely servicing of financial obligations.
Such instruments carry a very low credit risk," it said further.

Securitisation means creation of a financial instrument by an issuer by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
It can encompass any type of financial asset and promotes liquidity in the marketplace.