SKS Microfinance Q1 net loss at Rs 218 cr

Hyderabad: SKS Microfinance, India's only listed microfinance institution on Tuesday reported a net loss of Rs 218.7 crore for the quarter ended June 30 and said it may raise up to Rs 900 crore through private placement of securities.

The company's net profit stood at Rs 66.7 crore during the same period last fiscal, the company said in a filing to the Bombay Stock Exchange.

It had to provide Rs 188.63 crore towards provisions and write offs in the quarter as against Rs 11.96 crore during the same period a year ago.

SKS Microfinance, which raised around Rs 1,600 crore through its Initial Public Offer last year, is now is mulling to raise Rs 900 crore by way of Qualified Institutional Placement (QIP).

Company Chief Financial Officer Dilli Raj said the Board has approved the proposal to raise up to Rs 900 crore.

"There is huge growth opportunity outside Andhra Pradesh and also there is unmet demand in the market. We want to take the growth opportunities," Raj said.

He said the price at which the QIP is offered will be decided by the SEBI using floor price mechanism.

SKS' total income declined by 43.7 per cent to Rs 176.7 crore for the quarter ended June 30, as against Rs 313.6 crore in the corresponding period last year.

Source: Financial Express