July 01, 2015
Thu 07 Jul 2011

SKS Microfinance Says Proposed Bill Positive for Industry

  • “This could be positive for SKS given severe operational restrictions under” Andhra Pradesh ’s microfinance act, JPMorgan said in a July 7 note to clients, maintaining an “underweight” rating, citing “fundamental flaws” in the business
  • JPMorgan Chase & Co. analysts led by Seshadri K Sen predict that loan recoveries from the state, the industry’s largest market, are unlikely even if the new bill is passed
  • The bill would take microfinance companies outside the auspice of state regulations, averting crackdowns like one in the southern state of Andhra Pradesh last year that saw microfinance lenders’ debt collections fall to below 20 percent
  • largest listed lender to the poor, says a proposed bill to have the central bank regulate the industry will help ensure orderly sector growth, according to its chief financial officer
  • It’s “hugely positive” for the country’s microfinance lenders, CFO Dilli Raj said at a televised press conference today in Hyderabad, where the company is based

  • Related // economictimes   bloomberg  


    Tags // MicrofinanceBillAndhra PradeshIndiaMumbaiRajGMTCo  

    Recent Stories