SKS Micro securitises Rs 243 cr of receivables

India’s only listed micro-lender SKS Microfinance on Monday said that it has securitized Rs 243 crore of receivables from borrowers outside of Andhra Pradesh.

According to SKS, the transaction is rated A1+(SO) by rating company Care indicating a strong capacity for timely payment of short-term debt obligations.

The news gave a fillip to the stock of SKS and pushed it up nearly 10 per cent to the upper circuit at Rs 98.20 on Bombay Stock exchange today.

Mr S Dilli Raj, chief financial officer, SKS Microfinance said, “SKS delivered all its promises to the credit-granting community through the painful transition phase, post the AP MFI Act. Now, it is time to reap the fruits of consolidation.”

The rated pool comprises receivables from 3,22,312 woman borrowers from the weaker sections as defined by the Reserve Bank of India, the company said.

“The pool is well diversified with a single branch accounting for less than one per cent of the pool, with the average loan amount being Rs 11,131,” a company statement said.

Prior to this transaction, the company had completed six securitizations post the AP MFI Act. All the rated papers have shown robust collection efficiency of more than 98 per cent.

Credit enhancement has not been utilised in any of these structures, it added.