SKS Microfinance yesterday issued a statement saying that it had incurred a notional loss of around Rs 60 Crore as it was unable to collect repayments due to the provisions of the Andhra Pradesh Microfinance Ordinance.
In a report filed by the Economic Times Mr Atul Takle ,Executive vice president – Corporate Communications at SKS Microfinance said “Our single day collection is around Rs 12 crore from Andhra Pradesh. On a weekly basis, the collection loss would work out to Rs 58-60 crore. It is only a notional loss .” Mr Takle further added that the loss is just notional and the ordinance did not have any adverse impact on its business.
He further added that the company has extended the loan repayment period for borrowers to 51 weeks from the earlier tenor of 50 weeks, as business came to a standstill, following the ordinance brought out by the Andhra Pradesh state government to regulate microfinance institutions.
The share prices of SKS Microfinance came under further pressure and slid below the issue price of Rs 985 during intra-day trade before closing finally after a roller coaster ride at Rs 1,005 , down by -4.6 % than it’s previous close.