SKS Microfinance cuts interest rate by 1%, shares rise over 6%
SKS Microfinance said this is the fourth time the company has reduced interest rate since October 2014. It had earlier slashed rate by 1.25% in September.
SKS Microfinance on Friday further slashed its interest rate by 1% to 19.75% with effect from December 7 for all future disbursals after the Reserve Bank of India (RBI) eased loan norms for Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) on Thursday.
The RBI increased the loan limit for these lenders to Rs 30,000 from Rs 15,000 earlier for loans of less than 24 months maturity.
"This is the fourth interest rate reduction, aggregating 4.8%, announced by the company since October 2014. The reductions are consistent with the company's policy of passing on the cost advantages accruing from reduction in the cost of borrowing and economies of scale to its borrowers," SKS Microfinance said in a filing to BSE.
SKS Microfinance said this is the fourth time the company has reduced interest rate since October 2014. It had earlier slashed rate by 1.25% in September.
At 1344 hours, the company's stock was trading at Rs 451.00, up 6.37% or Rs 27.00, per piece on BSE.