SKS Microfinance eyes Rs 60 crore profit next fiscal
Mumbai, Feb 3 (PTI) After posting profits in the third quarter of FY''13 after seven straight quarters of losses, country''s only listed micro-lender SKS Microfinance hopes to continue the momentum and is expecting a profit of around Rs 60 crore in the next fiscal.
The microfinance institution also aims to disburse around Rs 2,800 crore credit in FY''14, a top company official said.
"We hope to disburse around Rs 2,800 crore next fiscal.
Our aim is to attain a return on equity of 15 per cent, which should translate into around Rs 60 crore of profit during this period," SKS Chief Financial Officer S Dilli Raj told PTI.
SKS has disbursed around Rs 2,100 crore of loan in he first nine months of the current fiscal, he added.
"Our focus now is on profitable growth with efficiency and not just on scaling up," Managing Director and Chief Executive Officer MR Rao said, adding that the environment for microfinance industry has improved much now with banks willing to lend to the sector.
The microfinance major, which was severely hit in the aftermath of the legislation passed by Andhra Pradesh government in October 2010, reported a profit of Rs 1.15 crore in three months to December after posting losses for seven quarters on the trot.
The company''s operations in Andhra Pradesh had struggled after the state regulations stipulated stringent procedures in lending to borrowers, mostly poor, in the semi-urban and rural pockets. The ordinance also made it mandatory for people to borrow from only one MFI, hitting the sector hard.
The company said it has written off around Rs 1,300 crore of its loan in Andhra Pradesh post the crisis, along with limiting its operations by pruning staff in the state--from over 7,000 to jut about 1,400. (More) PTI DM AA BEN NSK