SKS Microfinance Ltd, which has been hit by Andhra Pradesh microfinance crisis, is now facing problem in parts of West Bengal and Gujarat.
"Due to local and process-related issues, the collections in some districts in West Bengal and Gujarat have dropped to about 86 per cent,’’ Mr M.R. Rao, Managing Director and Chief Executive Officer of SKS, told newspersons here on Wednesday.
West Bengal is the third largest market for the Hyderabad-based company which operates in 18 States.
Asked on the exact reasons behind drop in collections, he said issues involving commission agents were among them.
The problem is seen in five districts of West Bengal and three districts of Gujarat.
"We have been dealing with these kind of issues from time to time,’’ he said.
WRITE-OFFs in AP
The company is likely to adopt a phased-approach in writing off the Andhra Pradesh portfolio which has been classified as non-performing asset in line with the Reserve Bank of India norms.
"We still have time to write off the residual risk exposure of about Rs 337 crore. We will exercise flexibility,’’ Mr Dilli Raj, Chief Financial Officer, SKS, said.
The only-listed MFI in the country, which posted a loss of Rs 385 crore loss in the second quarter ended September 30, 2011, is hoping to be profitable by the end of financial year 2013.
This would be done by expanding non-Andhra Pradesh portfolio and increase revenue from non-microfinance business such as gold loan, funding to grocery stores, mobile-phone finance and sale of insurance, he added.
SKS scrip on Wednesday was trading 4.97 per cent up on the Bombay Stock Exchange at Rs 112.95 in afternoon trade.