Loan defaults hit SKS profit hard

Jan 24, 2011 |

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Jan. 24: SKS Microfinance Ltd, the country’s only listed-microfinance company, posted a 38.41 per cent decline in net profit on the back of higher provisioning and bad loan write offs.

The company’s net profit was Rs 34.15 crore for the third quarter in fiscal 2011 as compared to Rs 55.45 crore in the same period last year. The total provisioning and write offs for the quarter was Rs 100.75 crore, which includes additional provisioning of Rs 26.98 crore, SKS said. The provisioning and write-offs include `59 crore relating to its portfolio in Andhra Pradesh.

The company’s business had hit hard in October 2010 when AP brought out an ordinance against the aggressive recovery practices of micro-lenders.

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