SKS Microfinance poised to make a clean break from the past
Friday, November 1, 2013
The earnings itself tell a revival story. Its return to profitability is not a one-quarter wonder, but appears to be a sustainable one. And the company may be lucky in the fact that it bled much before its peers who are still struggling with loan restructuring.
Net profit for four consecutive quarters after bleeding for seven, is an achievement in itself for a company that was written off after the state went after it for dubious business practices.
Post the Andhra Pradesh crisis in 2011,SKS Microfinance had written off its entire exposure of 1,600 crore in the state. The resulting write-off led to the company posting losses for nearly two years till September 2012. But its focus shift to other states helped grow loans.