SKS Microfinance
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SKS Microfinance | |
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Type | NGO |
Founded | 1998 |
Headquarters | Hyderabad, India |
Area served | India |
Key people | Vikram Akula, founder |
Industry | Finance |
Products | Microfinance |
Total assets | $350 M. USD (2007) |
Employees | over 4000 |
Website | 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 550 branches in 14 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.
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[edit] Growth
It is one of the largest and fastest-growing microfinance organizations in the world, with total disbursements exceeding $350 million to over 1 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.[1] 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%.[2]
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.[2]
[edit] 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.
[edit] 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.
[edit] Notes
- ^ SKSIndia, "Operational & Financial Information"
- ^ a b Microcapital, "MICROCAPITAL STORY: SKS Microfinance Raises $37 Million in Equity Sale"
[edit] See Also
- Grameen Bank
- JAK members bank, a Swedish interest-free bank
- Opportunity International
- Islamic banking