MICROCAPITAL BRIEF: Standard Chartered Bank Loans $14m to Indian Microfinance Institution (MFI) SKS

standard chartered microfinance

The Indian unit of UK-based Standard Chartered Bank (SCB) recently notified MicroCapital that it has disbursed a loan of INR 900 million (USD 14 million) to SKS Microfinance, a for-profit Indian microfinance institution (MFI).  The terms of the loan will not be released.

As of 2014, SKS reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 521 million and approximately 5.2 million borrowers. As of March 2013, SKS reported return on assets (ROA) of -15.8 percent and return on equity (ROE) of -73.4 percent. The institution does not accept deposits. Shares of SKS are traded on the Bombay Stock Exchange and India’s National Stock Exchange.

As of 2014, SCB reported total assets of USD 726 billion; it had USD 1 billion invested in MFIs in Asia and Africa as of 2012.

By Makai McClintock, Research Associate

About SKS Microfinance:

SKS Microfinance is a for-profit microfinance institution (MFI) that was launched in 1998 in India. SKS converted

into a public limited company in May 2009 and launched an initial public offering on July 28, 2010. It has since diversified into offering gold loans and microinsurance services but does not accept deposits. As of 2014, SKS reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 521 million and approximately 5.2 million borrowers. As of March 2013, SKS reported return on assets (ROA) of -15.8 percent and return on equity (ROE) of -73.4 percent. The institution does not accept deposits. Shares of SKS are traded on the Bombay Stock Exchange and India’s National Stock Exchange.

About Standard Chartered Bank:

Founded in 1969, Standard Chartered Bank is a financial services company based in the United Kingdom. As of 2014, SCB reported total assets of USD 726 billion; it had USD 1 billion invested in MFIs in Asia and Africa as of 2012.

Sources and Additional Resources

[1] Information provided to MicroCapital by Standard Chartered Bank India, April 2015

Source: www.microcapital.org

Category: Payday loans

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