SKS Microfinance has posted a 23.9% increase in its net profit at Rs 61.2 crore for the first quarter ending June 30 as against Rs 40.5 crore in the previous quarter.
The company’s gross loan portfolio, excluding the states of Andhra Pradesh and Telangana, registered a 15% quarter-on-quarter growth to R4,797 crore as against R2,783 crore. The loan disbursements increased by 105% on a year-on-year basis to R2,377 crore from R1,160 crore. During the quarter, the company saw an incremental drawdowns of R1,046 crore from R575 crore, excluding origination under managed loans, the company said in a release.The company issued Commercial Papers (CPs) of an aggregate amount of R405 crore and non-convertible debentures totalling R200 crore in Q1-FY16.
The company completed securitization worth R84 crore with a rating of ‘AA (SO)’ and also originated R243 crore of loans under managed portfolio in Q1-FY16.The cost-to-income ratio reduced to 52.3% compared to 59.4% while cost of interest-bearing liabilities stood at 11.9% as against 11.8% in last quarter.
On account of the reduction in the cost of borrowing, the company could reduce the interest rate charged to borrowers from 23.55% to 22% with effect from July 1, 2015. With this reduction, the company charges the lowest rate among non-banking financial company-micro finance institutions (NBFC-MFIs) on its core Income Generating Loans (IGL) which are unsecured micro loans. The unavailed deferred tax benefit of R460 crore and minimum alternate tax (MAT) credit of R21 crore will be available to offset tax on future taxable income.