Mumbai/Hyderabad: SKS Microfinance Ltd, India’s lone-listed microlender, said on Monday it raised Rs.390 crore through two securitization transactions, which is the process of pooling loan assets into marketable securities to be sold to banks.
Including the new deals, SKS, which offers small loans to the poor, has raised Rs.803 crore through seven securitization transactions this financial year, the microlender said in a statement.
The loan pools sold to two banks in the latest deals qualify as priority sector lending under the Reserve Bank of India’s guidelines, the company said.
Banks need to lend 40% of their loans to agriculture, exports and other weaker sections. Certain securitization transactions too qualify as priority sector lending for banks.
SKS shares jumped 10% to Rs.145.75 on the BSE in morning trade, while the Sensex remained nearly unchanged at 19,487.70 points.