SKS Microfinance

JainMatrix Investments has recently published a report on SKS Microfinance. Here is a brief introduction to SKS.

Description and Profile

  • SKS is a microfinance firm (NBFC-MFI) based in Hyderabad that distributes small loans.
  • In FY15, Income was Rs 724 crores and Profits Rs 188 cr. on a Loan Portfolio of Rs 4,185 cr.
  • Loans range from Rs 2,000-12,000 for low income women to start and expand a small business. Also loans upto 30,000 are disbursed provided customers complete 2 loan cycles.
  • SKS has a business model, where customer groups are formed to act as a guarantor, instead of individuals. They are educated by well trained staff of SKS in weekly meetings and updates. This has proved efficient and the credit collection rate is over 99%.
  • SKS caters to 5.8 million clients with 1,268 branches across 16 states centers, 9000 plus workforce and 3.6 million Non–AP borrowers.
  • Current shareholding is Promoters 9.2%, FII 42.7%, DII 18.4%, Bodies Corporate 7.2%, Individuals 9.3% and others 13.2%.
  • The MD & CEO of SKS is Mr M.R. Rao, a career Banker with 25 years’ experience in Profit Centre Management, Insurance distribution, Retail Banking and Consumer Finance. Rao joined SKS in 2006. Other leaders are Mr S. Dilli Raj, President and Mr K. V. Rao, Chief Operating Officer.

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Punit Jain  Founder, JainMatrix Investments