The enactment of a new law to control microfinance institutions in Andhra Pradesh has hit the number of disbursements and quantum of loans in the December quarter by SKS Microfinance which has a large presence in the state.
The number of loan disbursements by the company during the December quarter went down sharply to 13.48 lakh from 28.33 lakh in the previous quarter showing a fall of 52 per cent.
The company said total loan amount disbursed to small borrowers stood at Rs 1,590 crore in the third quarter as against Rs 3,171 crore in the second quarter registering a decline of 50 per cent.
According to sources, the shortfall is due to the prevailing situation in Andhra Pradesh where MFIs including SKS are finding it difficult to go for fresh loans given the stringent rules imposed by the state government.
"While the collections in Andhra Pradesh stood below 44 per cent, the same was 100 per cent in Kerala while in other states it was above 95 per cent," SKS Microfinance said in a statement.
Andhra Pradesh which accounts for nearly 30 per cent of its loan portfolio, has bad debts of Rs 1.16 crore. The total bad debts that were written off throughout the country were Rs 8.56 crore. Net NPA which was Rs 5 crore in Q2 has moved up to nearly Rs 11 crore in Q3.
The number of manager trainees has gone down to 2,278 by end of December against 5,219 as on September 30 indicating employee attrition. But a company spokesperson said most of those trainees have been promoted as managers.
The number of managers has gone up to by 1,516 to 15,920 by the end of December.
SKS in its report said it has an incremental credit limit sanction of Rs 2,722 crore as on 31 December last year. The company also said it has started pilot project for gold loan in five branches. The company has a cash and bank balance of Rs 398 crore as on December 31.
SKS reported PAT of Rs 34 crore for Q3FY11, down 38 per cent over the same period last year while revenues registered a growth of 45 per cent at Rs 389 crore for the same period.
