SKS Microfinance has received a refinance line of Rs 100 crore at 10 percent per annum from Micro Units Development & Refinance Agency Limited (MUDRA).
Speaking to CNBC-TV18, President Dilli Raj says the additional capital will help lower the cost structure by 20-25 basis points (bps).
This is the first refinance limit sanctioned to SKS Microfinance by MUDRA.Below is the verbatim transcript of Dilli Raj’s interview with Nigel D’souza and Reema Tendulkar on CNBC-TV18.
Nigel: Rs 100 crore is what you have got at around 10 percent, that is the refinance amount. Can we look forward to more such refinances?
A: Certainly, this is the first tranche what was sanctioned to us and our understanding is that this is one of the largest tranche sanctioned by Gujarat to any of the non-banking financial institution (NBFC) microfinance institution (MFI). So, primarily, in the recent past, we articulated that you do not need to be a bank to avail refinance. I think this is the first transaction which stands in evidence for our conviction that even as an NDFC MFI, we will be able to access refinance.
Reema: Could you tell us the pipeline of future refinancing for SKS Microfinance?
A: As is said, this is the first tranche, so, Mudra was announced by the Honourable Finance Minister in the Budget speech. In a matter of hardly 3-4 months, it was given shape and then they have a great management team which has started refinancing itself. So, we certainly look forward to many more tranches as they step up their equity and internal formalities.
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