Draft MFI Bill materially positive for SKS: Espirito Santo

The Reserve Bank of India is all set to regulate the micro finance sector. In an interview with CNBC-TV18, Santosh Singh, Analyst at Espirito Santo, said if RBI starts regulating this system, the lending to the sector would start.

He further said that the news is positive for the sector. "It's materially positive for SKS Microfinance," he added. Below is the verbatim transcript of the interview. Also watch the accompanying video. Q: How material a positive is this RBI nod to regulate microfinance institutions for a stock like SKS Microfinance? A: It's materially positive for SKS Microfinance. The Andhra government stopped the activity of microfinance sector as a whole in the state which led to banks not lending to this sector as a whole. If RBI starts regulating this system, the lending to the sector would start and a lot will depend on what will happen in Andhra on the collection front. Currently, it