SKS Microfinance may raise up to Rs 5,000 crore in FY 12

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SKS Microfinance, India's only listed micro lender, may raise up to Rs 5,000 crore before the end of the current fiscal, a top executive said on Wednesday.

The business plan for the current fiscal is ready and we may raise Rs 500 crore by the end of June, Dilli Raj, CFO, SKS Microfinance, told media persons here.

"We may raise Rs 4,000 crore to 5,000 crore in this fiscal, 30% of it will be by securitisation and the rest will be term loan. 43% of the fund requirement will be from public sector banks, 8% by foreign banks, 33% by private banks and 16% by other lenders like developmental financial institutions," he said.

The company is awaiting the Malegam Committee report to be notified which will enable the micro lender to make provisions for bad debts and write offs for the current fiscal, Dilli Raj said.

SKS Microfinance has shown Rs 236 crore as provision and write off for FY 11.

Dilli Raj expects that the provisioning will be in range of Rs 125 crore in the current fiscal as far as outstanding from Andhra Pradesh, a key market, is concerned.

The outstanding in Andhra Pradesh stood at Rs 1,285 crore largely due to a slowdown in extending fresh loans, thereby disturbing the loan cycle, he said.

According to Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011, every loan application has to be approved by the State Government officials before extending loan to the borrower.