Micro lender SKS Microfinance said today it has completed another round of securitisation by passing on receivables worth Rs 162.62 crore to a private sector bank.
Receivables from loans extended to 1.90 lakh rural women entrepreneurs, which qualify as priority sector lending under RBI guidelines, were downloaded to a special purpose vehicle and the pass through certificates have been purchased by a "private sector bank", it said.
Under the PSL guidelines, banks are mandated to lend nearly 40 per cent of their annual lending to teh deprived sections of the society. Most banks fail to reach the target, failing which the differential funds get parked in the low yielding rural infrastructure guarantee fund.
This is the eighth round of securitisation carried out by the Hyderabad-based company this fiscal and takes the total amount raised through such transactions to Rs 1,270.91 crore, the company added.
The loans are from 14 non-Andhra Pradesh states, it said. It can be noted that Andhra Pradesh, once the most lucrative micro-finance market, is facing massive issues for the sector after allegations of coercive practices used by micro-lenders which allegedly led to the suicides.
The entire pool comprises the receivables from women entrepreneurs from the weaker sections, it said, adding that 27 per cent of them are Scheduled Castes and Tribes, 17 per cent from minorities and 38 per cent from backward castes.