SKS To Diversify To Gold Loans, Retail

SKS Microfinance, the only micro finance institution (MFI) to be featured on the BSE, is diversifying its operations, and has chalked out a strategy to acquire a comfortable market share.

"The pilot project of gold loans that we have taken up will be expanded further," the company's Managing Director M R Rao said.

This apart, the chain of Sangam stores has yielded good results, he said.

Rao said that as of now, there are 4,000 stores for retail goods, and that the number will increase to 15,000 by March 2012.

The legislations and strictures passed by the Andhra Pradesh government have given the company a rude jolt in the state and elsewhere. The company must now write off residual risk due to the stringent laws, and is looking at raising the money from non-microfinance sectors.

The company has fixed a target of financing 5.5 lakh mobile phones, and it has achieved half the intended figure, Rao said.

An ombudsman will be appointed by the end of this year, he said, adding that there was not a single retrenchment, despite the loss of revenue due to various reasons.

SKS will raise Rs. 500 crore to redesign retail insurance, he added. (INN)