SKS Microfinance shares soar over 16 per cent on BSE

The shares of a non-banking finance company SKS Microfinance soared over 16 per cent on Monday even as the company's net loss narrowed down to Rs 39 crore in the quarter ended June 30, from a net loss of Rs 329 crore in the quarter ending March 31, 2012.

The shares of the company made a positive start in the morning trade and it further gained 15.58 per cent to Rs 104.20 on the BSE.

At the NSE, the stock surged 16.16 per cent to Rs 104.20.

SKS had a net loss of Rs 219 crore in the corresponding quarter of the previous fiscal.

"We raised incremental debt of Rs 1,360 crore in Q4-FY12 ...the write-off of Rs 1,128 crore on the AP portfolio cleansed the balance sheet," S Dilli Raj, Chief Financial Officer, SKS Microfinance had said.

"Our immediate priority is to return to the path of profitability and with the capital raise we should reach there sooner than later," Raj said.

SKS Microfinance Ltd is a non-banking finance company (NBFC-MFI), registered and regulated by the Reserve Bank. It operates across 18 states.

As a provider of small loans, the company ran into rough weather last year amid allegation of using strong-arm tactics to recover its money, which led to tougher regulations that hit the sector.

With PTI inputs