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“The present transactions generate liquidity of Rs 370 crore for SKS and also bring in the concomitant capital relief. Notably, 26 per cent of the pool is from scheduled caste and scheduled tribe entrepreneurs, 18 per cent from minorities, 34 per cent from backward castes and 22 per cent from women belonging to other castes,” S Dilli Raj, chief financial officer, said in a filing to the Bombay Stock Exchange on Monday.
The transactions have helped SKS provide working capital access to 500,000 women rural entrepreneurs, while enabling the purchasing banks to achieve their priority sector loan obligations, he added. SKS has downloaded the receivables from microloans extended to rural women entrepreneurs to a special purpose vehicle, and pass through certificates have been purchased by a major public sector bank and a private sector bank in the deals announced on Monday. Notably, the entire pool qualifies for the weaker section treatment by the Reserve Bank of India’s priority sector lending guidelines.
According to the company, the two pools, rated A1+(SO), signifying “highest safety” by one of the leading rating agencies, are structured with geographical diversity as they comprise receivables from 14 states (excluding Andhra Pradesh), after capping the maximum pool exposure of 23.5 per cent for any state.
The non-banking finance company, which operates across 17 states — Andhra Pradesh, Karnataka, Maharashtra, Odisha, Madhya Pradesh, Bihar, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, West Bengal, Jharkhand, Chhattisgarh, Gujarat, Kerala, Punjab and Delhi — has completed 22 assignments and securitisation transactions worth Rs 2,481 crore since October 2010.
At that time, Andhra Pradesh had promulgated its Andhra Pradesh Micro Finance Institutions (Regulation of Money-lending) Ordinance, 2010 (which became an Act in December 2010).
SKS’ scrip gained 10 per cent on Monday to close at Rs 145.75 on BSE, while the benchmark Sensex shed 0.12 per cent to 19,460.57.
