Microfinance Focus, August 1, 2011: Slimming down its branch network by 8 percent over the last one year, SKS Microfinance earned a revenue of Rs 177 crores in the first quarter of FY12, down by 9 percent. The number of loans disbursed by SKS has also fallen down by 59 percentover the one year period. As against the 21.8 lakhs loans disbursed in Q1 2010, only 8.9 lakhs loans were disbursed during the same quarter this year.

According to SKS Earning Update for the first quarter of FY 2011, the total amount disbursed has also declined by 61 percent form Rs 2,283 crores June 2010 to Rs 900 crores as on June 2011.

Although the collection efficiency in Andhra Pradesh continues to remain poor and is only 12 percent in Q1FY12, SKS enjoys a healthy collection rate of more than 99 percent in most of the other states it is operating. With low recovery in Andhra Pradesh, SKS’s Non-Performing Assets (NPAs) in the state rose to Rs 110 crores.

SKS reported a loss of Rs. 219 crores for Q1-FY12 on account of credit cost of Rs. 184 crores and deferred tax asset reversal of Rs. 95 crores. The company has a networth of Rs. 1,563 crores and cash & bank balances of Rs. 281 crores as at 30th June, 2011