India’s top microfinance firm SKS Microfinance has decided to change its name to Bharat Financial Inclusion Limited, subject to regulatory and corporate approvals. This is in line with the growing trend to embrace the word financial inclusion within a broadening framework.
SKS Microfinance has informed BSE that its Board of Directors at its meeting held on May 04, 2016, approved change in name of Company from "SKS Microfinance Limited" to "Bharat Financial Inclusion Limited", subject to the approvals of the shareholders, Reserve Bank of India, Stock Exchanges, Ministry of Corporate Affairs and/or any other appropriate authorities.
Financial Highlights for FY 2015-16:
SKS Microfinance has also announced that its Gross Loan Portfolio excluding the states of Andhra Pradesh and Telangana registered a 24% quarter-onquarter and an 84% year-on-year growth to Rs. 7,677 crore (Rs. 6,177 crore in Q3-FY16, Rs.4,171 crore in Q4-FY15) in Q4-FY16.
The Company’s marginal cost of borrowing reduced to 9.2% in Q4-FY16 from 9.9% in Q3-FY16 (10.2% in FY16 – the lowest in the microfinance sector; 11.9% in FY15).
The Company’s Cost to Income stood at 48.3% (61.1% in FY15) and Opex to Gross Loan Portfolio was 7.16% in FY16 (9.5% in FY15). In Q4-FY16, Cost to Income ratio was 47.5% and Opex to Gross Loan Portfolio further reduced to 6.5%.
Loan disbursements showed a 36% quarter-on-quarter and a 63% year-on-year increase to Rs.4,066 crore (Rs. 2,980 crore in Q3-FY16 and Rs. 2,494 crore in Q4-FY15). During the quarter,SKS Microfinance Limited had incremental drawdowns of Rs. 3,224 crore (Rs. 1,478 crore in Q3-FY16 and Rs. 2,414 crore in Q4-FY15) and full-year drawdowns of Rs. 7,317 crore in FY16 excluding origination under managed loans.
The Company also originated Rs. 326 crore and Rs. 1,064 crore worth of loans under managed portfolio in Q4-FY16 and FY16 respectively. The quarter also witnessed completion of securitization transactions worth Rs. 1,621 crore rated as ‘AA (SO)’ and asset assignment of Rs. 507 crore.
Otherwise, the company faced criticism from a group of shareholders over its transparency, which the company denied.