Shares of SKS Microfinance today climbed 6.5 per cent after the firm said Micro Units Development and Refinance Agency (Mudra) has sanctioned a refinance line of Rs 100 crore to the company at 10 per cent per annum to extend finance to micro entrepreneurs.
The stock jumped 6.37 per cent to settle at Rs 425.65 on BSE. Intra-day, it surged 7 per cent to Rs 428.40.
At NSE, shares of the company rose 6.52 per cent to Rs 428.90.
This is the first refinance limit sanctioned to the firm by Mudra, a company release said.
"At a rate of 10 per cent, this is lower than regular term loans from conventional lenders, and reinforces our assertion in the recent past that the non banking financial company - micro finance institution (NBFC-MFI) structure does not preclude us from availing dedicated refinance lines at a lower rate of interest," SKS Microfinance President Dilli Raj said.
The limit will help the company bring down the cost of its interest-bearing liabilities, which stood at 11.9 per cent at the end of first quarter of this fiscal.
The company has seen an overall reduction of 3.8 per cent in cost of its interest-bearing liabilities since October 2014.
Mudra was set up by the government for development and refinancing activities relating to micro enterprise units.
