SKS microfinance reaches 50 lakh women, targets 500 lakh now

Wednesday, September 9, 2009, 17:13
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SKS passbooks

By Naagesh Naaraayana

Microfinance focus, Sept. 9, 2009: Hyderabad-based SKS Microfinance, India’s largest microfinance company, has crossed five million clients, a milestone in its lending history.

The company’s Darbhanga branch in Bihar on Tuesday extended a loan worth Rs 10,000 to Ms Anita Devi. It has provided loans to 13,218 more clients since then. With this, SKS has reached 2.5 per cent of the country’s population and distributed collateral-free loans worth Rs. 9,110 crore for income generation.

“It’s the hard work and discipline of our members who repay us back on time that has helped us grow along with the confidence our investors have in us and the processes and systems that our staff follow diligently,” company COO M R Rao said in a press release.

SKS provides unsecured loans and micro-insurance products to poor women and their families across 62,000 villages and urban slums of India. It has a repayment rate of 99 per cent on its loans.

On an average, SKS adds 50 new branches and 3,00,000 new members every month, growing at an annual rate of 188 per cent, one of the fastest in the industry. The average borrowing per member is around Rs. 9,000 under the main basic income generating loan poduct.

SKS Microfinance currently has a membership base of 5,013,219 and aims to reach 500 lakhs in near future. With an outstanding loan amount of Rs. 2,815 crore, it operates through 1,628 branches in 19 Indian states. The company also offers a retail micro-insurance product along with Bajaj Allianz for its members.

SKS has so far raised $123.5 million in equity alone from Sequoia Capital and Sandstone Capital, among others. It recently became the first MFI to raise Rs 75 crore via non-convertible debentures (NCD) and list the same in Bombay Stock Exchange.

Previously it had raised Rs 25 crore via NCDs which was subscribed by Yes Bank. It had also completed a securitisation deal worth Rs 100 crore. It received a strategic investment of Rs 50 crore from insurance firm Bajaj Allianz Life Insurance in June this year.

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Tags: Bajaj Allianz, microinsurance, sks

9 Comments on “SKS microfinance reaches 50 lakh women, targets 500 lakh now”

Tallada Kishore wrote on 10 September, 2009, 17:56
SKS MF is going Good. I heard that they are coming up with an IPO. I am eagerly waiting for that. It would be the first MF company to go for IPO.
rajani wrote on 8 December, 2009, 19:52
Dear sir, Greetings from SLCRDO (NGO) if there is any possibility please send the guide lines of ur micro finance(
SKS)I am President of the organisation , we have some SHG inslums of our target area. I want to know about the SKS microfinance.

Thanking Yours sincerely
pramod kumar wrote on 10 December, 2009, 12:35
SKS Microfinance limited has achieved a milestone. Soon , it can be no. 1 microfinance in world.

thanks.
Anuj Singh wrote on 29 December, 2009, 23:36
A good example of social service while making profit. The way SKS is growing shows the efficiency, effectiveness and dedication of staff. Soon to overtake Grameen Bank.
SKS motivates other NGOs working in sector of microfinace and shows the acceptability of such business among the most vulnerable parts of the country.

Thanks
srinu wrote on 7 February, 2010, 20:25
gooood gooood its the only num one microfinance in india keeep it up
s.ayyanagoud wrote on 16 February, 2010, 21:06
sks microfinance has been star performer in India. being a leader in the field, it has crossed many mile stones. . I heartily appreciate the leader akula vikram forhis initiative and leadership for the cause of rural folk. I wish the sks tro to reach greater height to becomine the no1 inthe world inthe field. s.ayyanagoud student ofmicrofinance.
Ramanji wrote on 14 April, 2010, 12:18
SKS reaches 50 Lacs of client based milestone is a role model of all Microfinance institutions. to foll0wup good process & descipline.
DEEPAK TULI wrote on 16 May, 2010, 22:21
I heartily appreciate for the initiatve taken by the team working for SKS Microfinance and am extremely excited to know more about SKS Microfinance and and request to send me the gravatar
DEEPAK TULI wrote on 25 June, 2010, 13:07
Send me immages of gravatar