SKS Microfinance was incorporated as SKS Microfinance Private Limited, on September 22, 2003 under the Companies Act, 1956. The Company had obtained a certificate of registration from the RBI on January 20, 2005 to commence the business of a non-banking financial institution without accepting public deposits. With effect fromSeptember 1, 2005, the Company acquired business operations, assets and loan portfolio from SKS Society that was structured as a NGO and that was engaged in microfinance. In 1997, Swayam Krishi Sangam, or SKS Society, was founded as a public society in the state of Andhra Pradesh, and it functioned as a non-governmental organization, or NGO, that provided microfinance in Andhra Pradesh. After several years of operation as a NGO, SKS Society and its inherent not for profit business model was limited in its ability to address the credit needs of the poor throughout India. Accordingly, SKS Society decided it would transfer its business and operations to the company as of a newly incorporated private limited company in India in 2003.
The name of the Company was changed from SKS Microfinance Private Limited to SKS Microfinance Limited pursuant to a resolution of shareholders passed at an EGM held on May 2, 2009 and fresh certificate of incorporation was issued on May 20, 2009. Subsequently, a fresh certificate of registration dated June 3, 2009 was obtained from RBI for carrying on the business of non-banking financial institution without accepting public deposits.
The Company is the largest MFI in India in terms of total value of loans outstanding, number of borrowers and number of branches, according to the October 2009 CRISIL report titled India Top 50 Microfinance Institutions, or the CRISIL Report. The Company is engaged in providing microfinance services to women in the lower income segment predominantly located in rural areas in India. In addition to its market leadership position and the expertise in microfinance which they have developed, they believe that their competitive strengths include their scalable operating model which leverages technology, diversified product revenues, diversified sources of capital and its pan-India distribution network. Their strategy is to further expand its membership, loans and product offerings by relying on these strengths.
The company continues to finance its expansion by accessing multiple sources of capital, both debt and equity, including listed debentures, priority sector qualifying loans from banks, and equity investments from venture capital and private equity investors, institutions and others. Additionally, they seek to sell or assign our portfolio loans to banks to improve its financial position and finance its growth. During the four year period from fiscal 2006 to fiscal 2010, they expanded their membership from 201,943 in five states to 6,780,145 in 19 states, and their branches expanded from 80 to 2,029. Their total portfolio loans outstanding increased at a CAGR of 147.7% from Rs. 780.50 million as of March 31, 2006 to Rs. 29,367.20 million as of March 31, 2010. Over the four year period from fiscal 2006 to fiscal 2010, their profit after tax increased at a CAGR of 221.0%, from Rs. 16.47 million to Rs. 1,748.40 million. For the year ended March 31, 2010, their total income was Rs. 9,589.28 million.
1. Proprietary Products
2. Distributor Products