SKS Microfinance, the only listed microfinance institution in the country, expects its collections in Andhra Pradesh to improve from next week. The company had earlier reported that its collections in the state were lower than normal on account of transition from weekly to monthly collection in accordance with the provisions of the AP Micro Finance Institutions (Regulation of Money Lending) Ordinance 2010, promulgated recently.
“Now, we have totally migrated to the monthly model and made related changes in the management information system. We are positive that the collections will pick up from next Monday (November 29),” SKS Microfinance spokesperson Atul Takle told Business Standard. According to him, the collections are still below normal. Takle said in the past two weeks, SKS was engaged in explaining to its borrowers about the monthly collection mode and the amount they had to pay to the company.
SKS, which stopped disbursal of loans following the issue of the ordinance, also expects to start lending operations from next week.
Prior to the changes in the collection mode, SKS’ normal recovery in the state stood at Rs 28 crore a week. During the week ended October 29, SKS could not conduct village centre meetings at 54 per cent of its centres in the state. However, for the week ended November 12, it held meetings at 97 per cent of its centres.
The company’s shares closed 3.41 per cent higher at Rs 752.65 on the BSE.
