SKS Microfinance gets sanction for assignment of rated pool of Rs354 crore

SKS has already drawn down the first tranche of Rs78.7 crore comprising receivables from micro women borrowers from the weaker sections

SKS Microfinance, the country's only listed micro lender, today said it has securitised Rs354 crore of receivables from 18 states, except Andhra Pradesh. The securitisation was done by a major public sector bank, SKS said in a statement, without naming the lender. Under the pool securitisation, bundling micro loans made to borrowers like micro-entrepreneurs are sold to investors such as banks to raise funds.

The microfinance company has already drawn down the first tranche of Rs78.7 crore comprising receivables from micro women borrowers from the weaker sections, as defined by the Reserve Bank of India, the statement said.

"This is the largest rated pool assignment transaction in the Indian microfinance history," the company claimed.

The pool is well diversified with the average loan amount being Rs10,717. The pool is rated as CARE A1+(SO) (Highest Safety) by CARE, it said. Instruments with a CARE A1+ (SO) rating are considered to have a strong capacity for timely payment of short-term debt obligations and carry the lowest credit risk, SKS said.

Commenting on the transaction, S Dilli Raj, chief financial officer, SKS Microfinance Limited, said, rated pool assignment is an excellent instrument of confluence which achieves the amalgamation of the funding capabilities of the banking system and the credit delivery skills of microfinance companies.

"This sort of confluence may well be the real answer for financial inclusion. Our ability to consummate the largest rated pool assignment in the Indian microfinance history clearly demonstrates that funding concerns raised post the AP MFI Act are behind SKS Microfinance," Dilli Raj said.

Earlier this month, SKS completed another securitisation for Rs243 crore. The present transaction is SKS Microfinance Limited’s eighth assignment or securitisation transaction post the AP MFI Act. All the rated papers of SKS Microfinance have shown robust collection efficiency of more than 98%. Credit enhancement has not been utilised in any of these transactions, SKS claimed in the statement.

In the early afternoon, SKS Microfinance was trading at around Rs124.70 per share on the Bombay Stock Exchange, 2.81% down from the previous close.

User

COMMENTS

Job Search Sites

5 years ago

Nice. I like this post its very informative thanks for share it. Microfinance is usually understood to entail the provision of financial services to micro-entrepreneurs and small businesses, which lack access to banking and related services due to the high transaction costs associated with serving these client categories. The two main mechanisms for the delivery of financial services to such clients are relationship-based banking for individual entrepreneurs and small businesses; and group-based models, where several entrepreneurs come together to apply for loans and other services as a group.

Godrej & Boyce’s unit sees 30% revenue in 3 years

Design HQ will be launched in the existing Godrej Interio’s exclusive stores in Mumbai in the first quarter of the next fiscal, and then expanded to other metro cities

Furniture major Godrej Interio said it is expecting up to 30% of its revenue to come from Design HQ three years hence.

“We expect Design HQ to contribute 20-30% of the overall revenue in three years.... Design HQ will have workshops involving in-house as well as leading industry designers to develop new contemporary designs,” Godrej Interio COO Anil Mathur told PTI.

The company is expecting its overall revenue to go up by 25% to about Rs1,500 crore in FY12. “We have set a revenue target of $1 billion by FY17,” he said.

Design HQ will be launched in the existing Godrej Interio’s exclusive stores in Mumbai in the first quarter of the next fiscal, and then expanded to other metro cities. It will also develop customised designs suited to the customer’s individual needs, Mathur said. Godrej Interio has 50 company-owned retail stores and 45 franchisees (both furnishings and kitchenette) in the country.

“We plan to focus on the franchise model and are looking at 200 stores in the next two years,” he said.

Godrej Interio, a business unit of Godrej & Boyce, is eyeing 25% market share in the organised segment in next three years. “On the back of the growing demand for our products, we hope to capture 25% market share of the organised furniture segment in another three years. At present we are enjoying around 20% share,” Mr Mathur said.

The total furniture market in the country is estimated at around Rs40,000 crore, of which only up to 15% is organised, he said.

“We have signed exclusive marketing agreements with Korea’s Sejin for marine accommodation solutions, Japan’s Itoki and the US’ Knoll Inc for office furniture. Recently, we tied-up with Netherlands’ LINET Group for hospital and nursing home furniture and with this, we are now present in almost all the furniture verticals,” Mr Mathur said. All these marketing tie-ups will later be expanded to production agreements, depending on the market scenario, he added.

User

NTPC to invest Rs24,000 crore in Andhra plant

NTPC would soon float the tender inviting bids to supply equipment for its five super-critical power projects at Solapur, Mouda (Maharashtra), Meja (Uttar Pradesh) and Nabinagar (Bihar)

Country's largest power producer NTPC is looking at an investment of Rs24,000 crore for constructing a 4,000-Mw thermal power plant in Andhra Pradesh, a company official said.

“This is a 4,000-Mw (5x800 Mw) power project proposed at Pudimadaka near Anakapalli in Atchutapuram Mandal, Vishakhapatnam district of Andhra Pradesh,” the official said. Pudimadaka is among the basket of projects planned for the 13th Plan period (2017-22) but the company can consider taking it up earlier if the land and coal linkage is fast tracked, he added.

The feasibility report for the proposed project is under preparation, he said, adding that the land availability and coal linkage would be facilitated by the state government. NTPC would incur a cost of around Rs24,000 crore for building this plant, as an investment of about Rs6 crore is required for every megawatt generation, he said.

The electricity generated from this project would be consumed by the home state as well as the neighbouring state of Karnataka. The company would sign the Power Purchase Agreements (PPAs) with the respective states for the same. Since the project is located close to Vishakhapatnam, sea water can be utilised for Cooling Water system.

Meanwhile, the company would soon float the tender inviting bids to supply equipment for its five super-critical power projects at Solapur, Mouda (Maharashtra), Meja (Uttar Pradesh) and Nabinagar (Bihar). These projects are due to come up in the 12th Plan period (2012-17).

At present, NTPC operates plants with over 36,000-MW capacity, from all sources of energy. It has 15 coal-based, seven gas-based and six joint venture power stations. The company plans to take this capacity close to 70,000 MW by March 2017.

In the early afternoon, NTPC was trading at around Rs178.90 per share on the Bombay Stock Exchange, 2.51% down from the previous close.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)