SKS Microfinance cuts jobs, shuts branches in Andhra Pradesh
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SKS Microfinance Stock News, Analyst Calls And Reviews
Scrip of SKS Microfinance, the only listed microfinance firm in the country, zoomed around 20% to hit an intraday peak of Rs 105.70 today after the cabinet gave nod to a bill directed to bring microlenders under the central bank's oversight yesterday.
The Microfinance Institutions (Development and Regulation) Bill requires parliament's authorization to become a law.
The requirement to legalize the segment originated after microlenders were charged of aggressive lending and recovery practices and lofty rates of interest.
In October 2010, the Andhra Pradesh administration clamped down on the segment that lead to a drop off in loan collections and a drying up of funding for microlenders.
SKS Micro's biz in the state of Andhra Pradesh, which was a microfinance center earlier, was also hit though the lender stated that it is not making plans to shut its biz in the state.
The firm's loan portfolio in AP droppedto Rs 236 crore in the March quarter as compared to Rs 1,311 crore a year back as it was forced to write down some credit.
At 10 am, shares of the company traded 12.90% up at Rs 100.20 on the BSE.
Over the last year, the company’s shares declined 72%, declining from Rs 360 to sub Rs 100 levels.
On Thursday, SKS Micro declared slashing 1,200 jobs and closing of 78 of the 180 divisions it runs in the Andhra Pradesh.
SKS Micro hires 3,400 people in Andhra Pradesh.
The stock looks good for medium or long term investment.
The investors can buy the stock on declines.
SKS Microfinance cuts jobs, shuts branches in Andhra Pradesh
SKS Microfinance surges on hopes to recover Rs 600 crore
SKS Microfinance surges on hopes to recover Rs 600 crore
