Faced with a loss of Rs218.7 crore for the quarter ended 30 June – its biggest loss in a single quarter – SKS Microfinance Ltd, India's biggest and only listed microfinance institution, is planning to raise up to Rs900 crore through a qualified institutional placement (QIP) of equity shares.
The company has been evaluating various means of raising capital, primarily to meet its growing need for funds.
''In the absence of virtual certainty of future taxable profits … the net deferred tax asset amounting to Rs94.76 crore as at 30 June has not been recognised, in accordance with the requirements of Accounting Standard 22. This will be available to offset taxes on future taxable income,'' SKS said in a statement from its Hyderabad headquarters.
For the quarter ended June 2011, income from operations stood at Rs149.85 crore, while other operating income was Rs13.70 crore. Provisions and write-offs increased to Rs183.66 crore as against Rs119.58 crore in the corresponding period of the previous year.
SKS has been facing major issues in Andhra Pradesh, which contributes about 25 per cent of its portfolio – the state government has stepped in to put strong constraints on its activities.
For the Andhra market, the company has made a reassessment of its portfolio.