SKS Micro-finance one of leading MFI(Micro Finance Institution ) become hot topic for discussion among the management student.Discussion not only for getting job but also for rural Indian people who makes our life beautiful directly or indirectly.Aug. 16 2010 India's first and only listed MFI listed in BSE and share price gone up to Rs.1490.The issue price has been fixed at Rs 985 per share -the upper band of the price range.Within few days share got more than Rs 500 as return.After few month it came to below to issue price. Question is arise why it happened. To know more about it we have to go history ........................
TIME LINE......................
1997-SKS begins life as SKS Society,a non-profit.
2005-SkS turn into profitable organisation.
2007-Profit soared 2Rs.2Cr
2009-Profit Rs. 80Cr
2010
28 July-SKS go to Public issue @ 985.
4 Oct-SKS CEO Suresh Gurumani is sacked by board.
14Oct-Andra Govt. passes ordinance regulating MFI particulary in Interst rate and way of recovery procedure.
19 Oct- RBI set up a panel headed by Y.H malegam to study issues and concern of MFI.
26 Oct- Finances minster Pranab Mukherjee rules out any ore to regulate MFI
27 Oct- Andara Govt. instruct to reduce interest rate 2% and allow to restructuring the loan.
28 Oct- Andra Govt. set up four committees for effective implementation of MFI ordiance.
NOV- Andra Gov. allowed MFI to continue their business.Share price@918
FEW NEGATIVE NEWS FOR MFI's
2.Due to MFI's corporate governance bank are restricted to give loan.
3.Andra Govt passed ordinance for MFI's
4.Y.H malegam committees set up to study issues and concern of MFI.
5.CEO & MD sacked by Board.
TWO FACEES OF MICRO-FINANCE
VIKRAM AKULA
FOUNDER
AGE-42
EDUCATION:
BA in philosophy and English from Trufs; MA in international realtions from yale; Phd in political science from University of chicago.
WORK EXPERIENCE :
Founded sks in 1997; joined McKinsey in Chicago as a management consultant in 2004; returned to SKS in 2005
PHILOSOPHY:
Eradicating poverty profitability.
SURESH GURUMANI
FORMER CEO & MD SKS
AGE-47
EDUCATION:
Studied at university of Madaras between 1979 and 1982; a charted accountant
WORK EXPERIENCE;
Total 22 yrs; tenures with Standard Chartered, PwC and Barclay; CEO & MD with SKS Micro finance from dec.8, 2008 to Oct. 4 2010.
PHILOSOPHY:
Haul MFIs into modern retail banking.
SOURCE- ,bseindia.com,sksindia.com,Business Standard
SOURCE- Business India Nov,Business Standard 27 Oct,14 Nov,www.sksindia.com
This all information really help us.keep it up.
ReplyDeleteVery good information....so i thnk all must read this ......with this 10 out of 10 to this article ...
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ReplyDeleteFor Micro-Finance survival, they need to muzzle their Spin Doctors and listen more to their High Priest
ReplyDeleteA string of suicides in Andhra Pradesh that put micro-finance under the spotlight, triggered a backlash because of which, MFIs found themselves reduced to fighting for their basic survival. No surprise here to find a variety of spin-doctors functioning as their apologists, fending off and neutralising any criticism that the industry faces currently, almost oblivion to the fact their support is to a slow sinking Titanic. Two of the most significant spins in this debate are those related to suicides and interest rate. In this post, we bust these spins.
"I believe in Schumpeterian creative destruction. Its time has come. The present MFI model has to go.... It wasn't just about giving loans. It was also about creating livelihood mechanisms, which would build capacity among the poor to repay their loans easily, and leave them better off than before"
This is Economic Times quoting Vijay Mahajan, considered the high priest of Indian microfinance suggesting that either MFIs change their business models or go bust.
Read more: http://devconsultgroup.blogspot.com/2010/11/for-micro-finance-survival-they-need-to.html
Restructuring of Micro-finance not make profit driven institution ,the sole objective should be mission driven institution.If it willn't happen micro finance become a Micro-Finance banking.
ReplyDelete