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Thursday, March 21, 2013

SKS plans to resume lending operations in Andhra Pradesh soon

Country’s only listed micro lender SKS Microfinance today said it plans to resume lending operations in Andhra Pradesh soon, two years after the state government came out with a stringent laws to regulate the industry.

SKS Chief Financial Officer, Dill Raj said the recent Supreme Court’s interim order was of great relief to them and paves way to resume operations in the state.

“That is primary relief we got (from the Supreme Court order). We plan to carry out our business in Andhra Pradesh strictly in compliance with the Supreme Court order. We will adhere to those two sections. Also, we will comply with the Reserve Bank Rules,” he said,

When contacted, R Subrahmanyam, state Principal Secretary, Rural Development, said the Andhra Pradesh government is going to file a detailed affidavit with Supreme Court.

“We have not been issued any notice by the Supreme Court in this case. As far as our interpretation goes, Supreme Court did not set aside AP MFI Act,” Subrahmanyam said.

The Supreme Court only said no coercive measures should be taken by the state government, he added.

Dilli Raj said, SKS has 122 branches in the state and 1,200 people are working.

“Now we are getting our plans ready for fresh lending. May be in two to three days time, we should be ready with the plans,” he added.

Meanwhile, shares of SKS closed at Rs 119.60, down 10.58 per cent over their previous close on the BSE.

Source: thehindubusinessline


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