SKS Microfinance Eyes Small Finance Bank License

SKS Microfinance Limited will soon apply for a small finance bank license. The company board has approved the proposal for filing the license application to Reserve Bank of India (RBI).

The company in its third quarter results for FY 15 announced that it recorded 35% increase year-on-year. The company earned Rs 3,195 crore in Q3 FY15 from RS 2, 364 crore in FY 14.

“In Q3-FY15, loan disbursements stood at Rs 1,544 crore as against Rs 1,693 crore in Q2-FY15 (Rs 1,399 crore in Q3 FY14) while net interest income was at Rs 96 crore as against Rs 68 crore in Q3 FY14. The company announced a PAT of Rs 41.1 crore in Q3-FY15 while it was Rs 21.4 crore in Q3-FY14,” said the company in a statement.

The company’s net worth at the end of the year stood at Rs 998 crore while the capital adequacy is at 34.6%. “The un-availed deferred tax benefit of Rs 506 crore will be available to offset tax on future taxable income. Given the carried forward tax loss, no tax provision was required for Q3-FY15,” added the company.

It should be noted that RBI had revised the regulations for issuing licenses for Small finance banks. The bank has now made it mandatory for any company applying for a license to have a minimum paid-up equity capital of Rs 100 crore as well as the promoter group’s share in the paid-up capital should be at least 40%.