SKS Microfinance

infobox company
company_name = SKS Microfinance
company_
company_type = NGO
foundation = 1998
location = flagicon|IND Hyderabad, India
origins = Bangladesh
key_people = flagicon|IND Vikram Akula, founder
area_served = India
industry = Finance

assets = $350 M. USD (2007)
revenue =
operating_income =
net_income =
num_branches = 1200 (2008)
num_employees = over 4000
homepage = http://www.sksindia.com/

SKS Microfinance is an Indian non-governmental organization specializing in microfinance. It was founded in 1998 by Vikram Akula in Hyderabad, to provide small loans to poor women in rural areas. It currently has over 1200 branches in 15 states across India. The initialism in its name stands for "Swayam Krushi Sangam," or "self-help organization".

Among its investors are Vinod Khosla, Sequoia Capital, and SIDBI.

Growth

It is one of the largest and fastest-growing microfinance organizations in the world, with total disbursements exceeding $500 million to about 2.2 million women.

SKS has expanded from only 11 branches and $2,691,744 in outstanding loans in March of 2004 to $64,640,479 in outstanding loans over 275 branches in 2007. [ [http://www.sksindia.com/financialhistory/operational.htm#sks SKSIndia, "Operational & Financial Information"] ] SKS has also reported that by 2007 it had over 500,000 borrowers, a debt-to-equity ratio of 379%, and a return on assets of 1.75%. [http://www.microcapital.org/?p=1691 Microcapital, "MICROCAPITAL STORY: SKS Microfinance Raises $37 Million in Equity Sale"] ]

In 2007 SKS received 1,200 crore rupees, or over $304 million, from a number of financial institutions including Citigroup, ABN AMRO, Barclays PLC, the Housing Development Finance Corporation, Centurion Bank of Punjab, and Corporation Bank.

Technology

SKS is one of the first microfinance institutions in the world to have a fully-automated management information system. SKS also has pioneered the use of smart card technology at the village-level and is currently working with VISA International on a pilot project to develop and deploy wireless point of sale devices that would automate field operations and significantly reduce transaction costs.

Principles

SKS works on three inter-linked principles to scale microfinance. This includes using a for-profit methodology to access capital, drawing on best practices from the business world to speed growth, and deploying technology to overcome high delivery costs.

David Schappell of Unitus, a nonprofit venture-capital firm devoted to microfinance, likens SKS to the small coffee shop that became Starbucks.

Notes

ee also

* Grameen Bank
* JAK members bank, a Swedish interest-free bank
* Opportunity International
* Islamic banking

External links

* [http://www.sksindia.com/ Official site]