SKS Microfinance Ltd has suffered a significant fall in business in non-Andhra Pradesh regions in terms of decrease in active borrowers. The number of active borrowers in 18 States outside Andhra Pradesh decreased 47 per cent at 4,837,000 as on December 31, 2011, compared with the year-ago period, the company informed its investors.
The Hyderabad-based company, which was hit by the Andhra Pradesh Microfinance (Regulation of Money lending) Act 2010, has been maintaining that business outside the crisis-hit State is good.
The total disbursements came down 80 per cent to Rs 322 crore (Rs 1,590 crore).
On the operational front, the Andhra Pradesh impact is quite visible during the last one year. The company posted a net loss of Rs 428 crore in the third quarter, during which about 1,450 employees left the organisation bringing the total headcount to 17,854.
AP SCENARIO
Though the company said the exposure at risk in Andhra Pradesh is largely dealt within the books of accounts, the net portfolio in the State is still at Rs 484 crore.
During the third quarter, 123 branches were merged in the State.
The collections in Gujarat and West Bengal were noticeably lower at 69.3 per cent and 81.7 per cent, respectively, compared to above 90 per cent in all other States, except Andhra Pradesh.
West Bengal accounts for 17.3 per cent of total portfolio.
The gross loan portfolio stood at Rs 1,810 crore.
FOCUS
Going forward, SKS is planning to focus on growth in non-AP regions.
The present demand for credit was at Rs 3 lakh crore while the supply was only at about Rs 20,000 crore, it said.
Apart from ramping up the gold loans business by creating a separate subsidiary, the lender would roll out an endowment and term insurance product soon.