SKS Microfinance

Written By Sushma Singh

SKS Microfinance Ltd (SKS) was incorporated as a private limited company in 2003 for taking over the microfinance activities of Swayam Krishi Sangam, a society that was registered in 1997 and began operations in 1998. After obtaining the NBFC license from the Reserve Bank of India in January 2006, SKS took over the operations of Swayam Krishi Sangam.

SKS Microfinance


SKS is the only listed MFI in India and had its operations spread across 15 states with no state accounting for more than 20 percent of its overall loan portfolio as on September 30, 2013. Having successfully survived the Andhra Pradesh crisis despite having large exposure to the state, SKS is the second-largest NBFC-MFI with a loan portfolio of Rs.2,348 crore as of September 30, 2013.

Performance on key parameters

  • Loan portfolio grew to Rs.2,359 crore as on March 31, 2013, from Rs.1,669 crore a year ago, a year-on-year growth of around 41 percent
  • The portfolio performance outside Andhra Pradesh remains strong, with healthy collection efficiency of 99.8 percent; however, recovery in the Andhra Pradesh portfolio remains low
  • Has a relationship with nearly 20 banks and financial institutions. Also raises funds through securitization on a regular basis
  • Capitalization adequate for the current scale of operations, as seen in the net worth of Rs.411 crore and gearing of 5.5 times as on September 30, 2013. The company proposes to strengthen capitalization further to support the medium-term growth plan
  • Reported a net profit of Rs.5 crore and Rs.16.3 crore respectively during the first and second quarters of 2013-14, after reporting losses during 2011-12 and 2012-13. The profitability is expected to remain above average over the medium term, supported by strong collection performance outside Andhra Pradesh and an un-availed deferred tax benefit of Rs.555 crore as on March 31, 2013


Given below is the loan portfolio size of SKS Microfinance, it’s outreach and profitability for the last 3 years.

SKS Microfinance

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