Moneycontrol Bureau
Shares of SKS Microfinance surged more than 7 percent intraday Wednesday following fifth securitisation in FY16. It was an addition to 7 percent rally in previous two sessions, especially after the government continued its focus on MUDRA yojana.
"SKS on Tuesday completed fifth securitisation transaction during FY16 for a pool value of Rs 216.21 crore," the micro finance lender says in its filing.
With this transaction, total sum of securitisation completed during the financial year is Rs 1,567.21 crore.
SKS says pool has been rated AA (SO) by a leading rating agency, signifying a high degree of safety regarding timely servicing of financial obligations, adding such instruments carry a very low credit risk.
Additionally, Finance Minister Arun Jaitley, in his Union Budget speech, raised target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs 1.8 lakh crore for FY17 from Rs 1.2 lakh crore for FY16.
Credit Suisse sees the continued focus on MUDRA, with higher targets for FY17, as a positive for micro finance institutions such as SKS. This could become a significant low-cost funding source in future, it feels.
At 11:36 hours IST, the scrip of SKS Microfinance was quoting at Rs 531.25, up Rs 26.65, or 5.28 percent on the BSE.Posted by Sunil Shankar Matkar
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