Hyderabad: SKS Microfinance Ltd, India’s only listed microlender, ended seven consecutive quarters of losses by posting a profit of Rs1.15 crore for the three months ended December.
Income from operations stood at Rs.85.05 crore.
SKS and other microfinance institutions (MFIs) are trying to recover from the industry-wide crisis sparked by an October 2010 law put in place by Andhra Pradesh, the biggest market for loans made to low-income earners. SKS has written off its entire Andhra Pradesh portfolio, which accounted for Rs1,491 crore of loans.
The law sought to rein in lending by MFIs, responding to reports that coercive loan recovery practices were driving over-extended borrowers in the southern state to commit suicide.
The law made government approval mandatory for every second loan given to the same borrower, extended the loan recovery period and barred microlenders’ representatives from approaching the doorstep of their customers.
Shares of SKS dropped by 4.73% to close at Rs.164.20 on BSE on Thursday while the benchmark Sensex declined by 0.51% to 19,923.78 points.