SKS Microfinance has signed agreements to launch an integrated cash management system for 600 of its branches: 390 branches will partner with State Bank of India (SBI), 150 with State Bank of Hyderabad (SBH) and 60 with State Bank of Mysore (SBM). SKS has already integrated 575 of its rural branches with Axis Bank, HDFC Bank and ICICI Bank. According to Mr Dilli Raj, Chief Financial Officer of SKS Microfinance, this “will facilitate last mile cash-dealing” and enable the branches to “have bank accounts which are integrated to an Internet portal.”
“In addition, State Bank of India is also giving us Rs 100 crore [USD 29.39 million] funds as a mix of term loan and cash credit. This is significant because it shows the willingness of public sector banks to be associated with MFIs which was not happening earlier,” said Mr Raj.
By: Stefanie Rubin, Research Assistant
About SKS Microfinance:
SKS Microfinance was founded in India in 1998. In 2005, it transformed into a for-profit non-banking financial company (NBFC). As of September 2009, SKS had 3.5 million active borrowers and 1,676 branches, compared with 771 in March of 2008. According to the MIX Market, the microfinance information clearinghouse, its total assets as of 2008 were USD 596.2 million, with a return on assets of 3.68 percent and return on equity of 18.72 percent. SKS products include: income generating loans, mid-term loans, individual loans, loan cover insurance and health insurance.
Additional Resources:
Source Article: The Hindu Business Line: “SKS Microfinance Ties Up With SBI,” http://www.istockanalyst.com/article/viewiStockNews/articleid/3730342
SKS Microfinance: http://www.sksindia.com/
MICROCAPITAL.ORG BRIEF: SKS Microfinance Links with Axis, ICICI, and HDFC Banks for Excess Cash Management: https://www.microcapital.org/microcapitalorg-brief-sks-microfinance-links-with-axis-icici-and-hdfc-banks-for-excess-cash-management/
MIX Market: SKS Microfinance: http://www.mixmarket.org/mfi/sks
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