1. Presented by : SMITA RASTOGI

2. ABOUT SKS
 Swayam Krishi Sangam (the full form of SKS)
 SKS founded in 1997 as NGO in the state of Andhra Pradesh
 SKS founded by Vikram Akula
 2005, SKS Microfinance Private Limited registered as a NBFC with the RBI
 2013, SKS Microfinance Limited became NBFC-MFI
 SKS operates across 19 of 28 Indian states
 SKS only listed MFI in stock exchange in India
 MISSION:
To provide financial services to the economically weaker sections
 VISION:
To serve 50 million households across India and other parts of the world and also to create a commercial
microfinance model that delivers high value to our customers.
 CORE VALUES:
• RIGHT FOCUS- CUSTOMER FIRST
• RIGHT MEANS- ETHICS ALWAYS
• RIGHT WAY- CONSISTENT QUALITY

3. ABOUT SKS
 SKS ANTHEM SONG:
 SKS has its own anthem titled “Udhte Jaayen, Badhte Jaayen” (meaning “flying on, marching ahead” in
Hindi) aimed at motivating staff across SKS. Composed by Euphoria, a popular Indian band, the SKS
anthem is energetic and positive in tone.
 SKS LOGO:

4. SKS WORKING METHODOLOGY
 SKS serves millions of poor women across villages and urban slums in India.
 SKS Microfinance follows the Joint Liability Group Model
 WORKING PROCESS:
• Village selection
• Projection meeting
• Group formation
• Compulsory group training (CGT)
• Centre meeting
• Borrower education program
• Also a part of MFIN and Sa-Dhan, follow the code of conduct and regulations
 Effective Interest rate 19.75% and processing fees 1%
 Principal and interest payments due on a weekly basis

5. PROPRIETARYPRODUCTS
PRODUCT LOAN RANGE LOAN
TERM
Income Generation
Loans (IGL) - Aarambh
Rs. 9,100 to Rs. 20,010; maximum of Rs. 29,565 50 weeks
Mid-Term Loan (MTL)
- Vriddhi
Rs. 9,100 to Rs. 15,010; maximum of Rs. 15,010
After the completion of 19th weeks & till 46th weeks of an IGL cycle and
till 96th week of LTL cycle.
50 weeks
Long Term Loan (LTL) Rs. 30,915 to Rs. 38,635; maximum of Rs. 49,785
Completed 2 IGL Cycles
2 Years 104
weeks
Swarna - Pushpam Gold
Loan
Loans range from Rs. 2,000/- to Rs. 2,00,000/- 365 days
Biomass Cook stove
Solar Light
Water Purifier
Mobile Phone
Bicycle
Sewing Machine
Loan amount ranges from Rs. 1,799 to Rs. 5,290. 25 weeks

6. DISTRIBUTORY PRODUCTS
Product Features Benefits
Life Insurance Weekly payment of Rs. 20
for 5 years
Upon death, we disburse to the beneficiary the full sum
assured of Rs. 5,000 + account value, which is equal to
the aggregate of the premiums paid + interest accrued,
if any, less any charges for the administration of the
policy
In the event the death is deemed an accidental death,
the beneficiary receives Rs. 10,000 + account value
Upon maturity in 5 years where no death has occurred,
we disburse to the policyholder the account value.

7. SERVICES
3 Service Quality Checks:
• Sangam leader’s meeting
• Group leader feedback
• Toll free number
 SKS technology & web based service provider
 Investors alerts
 Schedule a meeting app
 General FAQS
 Investor FAQS
 Post a query
 Site feedback
 Contact officials

8. SKS NEW INITATIVE
PROGRAM
 SOLAR LAMP FINANCING
PROGRAM
 MOBILE FINANCING PROGRAM
 GOLD LOAN
SKS 3’C SCALEABLE
FORMULA
 CAPITAL
 COST
 CAPACITY

9. SKS MARKETING STRATEGY
 RURAL ADVERTISING
 PASSBOOK ADVERTISING
 SAMPLING EXERCISE
SKS FINANICAL INCLUSION
 Established its operations across 341
districts in 19 States out of which 315
have been identified by NREGA as the
poorest.
 Reach out to millions of poor – including
Backward-Scheduled Castes.
Approximately 57.3% of our members
belong to the “weaker section” of Indian
society.
 Amongst our employee base, many of
them belong to Backward Castes and
Scheduled Castes. Many of our
employees are children of our members.

10. SKS PARTNERSFINANCIAL
INSTITUTIONS
INVESTORS ASSOCIATION SUPPORTERS
PUBLIC SECTOR
BANKS
SIDBI MFIN BILLAND MELINDA GATES FOUNDATION
PRIVATE SECTOR
BANKS
KIMET CAPITAL SA-DHAN CGAP
CREDIT RATING
AGENCIES
YATISH TRADING MICROFINANCE
NETWORK
CRYSTAL SPRINGS FOUNDATION
INSURANCE
COMPANIES
SILLICON VALLEY
B ANK
ASIA-MICROFINANCE
INSURANCE NETWORK
DIGITAL PARTNERS
BAJAJ ALLIANCE FORD FOUNDATION
SANDSTONE GRAMEEN FOUNDATION
HINDU TEMPLE SOCIETY OF CAPITAL
DISTRICT
SWISS DEVELOPMENT AGENCY
MIT POVERTYACTION LAB
RAVI & PRATIBHA REDDY FOUNDATION
ECHOING GREEN FOUNDATION
THE I2 FOUNDATION
INDIA DEVELOPMENT SERVICE
MAHARASHTRA FOUNDATION

11. SKS MEDIA COVERAGE (2015)
• SKS share all the vital information’s with their stakeholders, management, clients, general public with the help of
media regularly, in order to keep transparency and make them update with the company operational and financial
performance.
 SKS Microfinance Limited slashes interest rate to 19.75%, becomes the first MFI to charge sub-20% interest rate
on 27-11-15
 SKS Microfinance Limited transforms operations with IBM Mobile First solution on 25-11-15
 MUDRA sanctions Rs. 100 crore refinance line at 10% per annum to SKS Microfinance Limited on 28-10-15
 SKS Microfinance Limited gross loan portfolio registers 14% QoQ growth to Rs. 5,462 crore in Q2-FY16 on 19-
10-15
 SKS Microfinance Limited’s Board of Directors approves Company’s proposal to apply for a Small Finance Bank
on 29-01-15

12. SKS CODE OF CONDUCT
 Code of Conduct for Directors and Senior Managers
 Internal Guidelines on Corporate Governance
 Code of conduct/ Ethics- for all Employees
• Dealing with Our Fellow Employees
• Dealing with Our Sangam Members
• Dealing with Our Business Partners and Lenders
• Dealing with the Marketplace
• Dealing with Our Communities and Governments
 Whistle Blower Policy
 Policy on Work Place Harassment
 Policy on Conflict of Interest for Management and Employees
 Code of practice and procedure for fair disclosure of
unpublished price sensitive information.
 Policy of appointment of Independent Director.
 Policy on Corporate Social responsibility work
 Policy on Related Party Transaction
CHARTER OF COMMITTEES
 ASSET LIABILITY MANAGEMENT
COMMITTEE
 AUDIT COMMITTEE
 NOMINATION and REMUNERATION
COMMITTTEE
 RISK MANAGEMENT COMMITTEE
 STAKEHOLDER’S RELATIONSHIP
COMMITTEE

13. SKS FINANCIAL PERFORMANCE (crore)
Operational
Information
FY14 FY13 FY12 FY11 FY10 FY09
Total no. of Branches 1,255 1,261 1,461 2,379 2,029 1,353
Total no. of Districts 294 298 329 378 341 307
Total no. of Staff 8,932 10,809 16,194 22,733 21,154 12,814
Total No. of Members 5,783 5,021 5,351 7,307 6,780 3,953
Amount Disbursed 4,788 3,320 2,737 7,831 7,618 4,485
Portfolio outstanding 3,113 2,359 1,669 4,111 4,321 2,456
Revenue 545 353 472 1,270 958 554
PAT 70 (297) (1,361) 112 174 80
Assets 2,497 2,511 1,722 4,300 4,055 3,039
Networth 459 390 435 1,781 950 665

14. SKS FINANCIAL PERFORMANCE (crore)
Particulars FY15 FY14 FY13 FY12 FY11 FY10 FY09
No. of
Members
5,325 4,963 4,308 4,257 6,242 5,795 3,521
No. of loans
disbursed
4,171 2,837 2,016 1,320 4,111 4,321 2,456
Disbursements
period
2,911 1,528 1,233 503 3,479 2,937 1,417
Gross loan
portfolio
918 1,075 783 817 632 1,384 1,039
Disbursements /
No. of Loans
Disbursed
8,994 6,275 3,445 1,623 2,681 3,638 3,093
Gross loan
portfolio / No.
of active
borrowers
3,214 2,864 2,246 1,984 0 0 0
Gross loan
portfolio / No.
of loan officers
787 721 444 312 0 0 0

15. FINANCIAL RATIO
Particulars FY15 FY14 FY13 FY12 FY11 FY10 FY09
Spread analysis ( as of Average Gross Loan Portfolio)
Gross yield
(I)
23.90 21.20 19.20 17.30 27.00 28.30 31.60
Portfolio
yield
18.80 17.50 15.20 14.40 24.50 25.30 28.40
Financial cost 8.30 8.30 7.80 7.30 7.40 8.50 11.10
Operating
cost
9.50 9.60 14.30 15.40 10.90 10.40 12.70
Provision and
write-offs
0.30 0.60 13.30 42.90 5.00 1.50 0.80
Taxes 0.20 0.00 0.00 1.30 1.30 2.80 2.50
Total
expenses (II)
18.30 18.50 35.50 67.00 24.70 23.20 27.10
Return on
average gross
loan portfolio
(I) - (II)
5.60 2.70 -16.20 -49.80 2.40 5.10 4.50

16. FINANCIAL RATIO
Particulars FY15 FY14 FY13 FY12 FY11 FY10 FY09
Efficiency
Cost to
income
61.0 74.5 125.10 155.30 55.70 52.40 61.80
Asset quality
Collection
Efficiency
99.80 99.80 99.10 95.60 0 0 0
Gross NPA 2.40 1.90 5.60 28.00 0 0 0
Net NPA 1.30 1.60 5.00 14.00 0 0 0
Leverage
Debt :
Equity
3.1 3.3 4.1 2.3 1.3 2.8 3.2
Capital
adequacy
ratio
31.70 27.20 32.20 35.40 45.40 28.30 39.00
Profitability
ROA 5.30 2.90 -15.80 -46.70 2.30 4.90 3.90
ROE 21.60 16.70 -74.40 118.90 7.50 21.50 18.20

17. BEST PRACTICES OF SKS
 Only India's listed microfinance lender in stock exchange
 Charges 19.75% of annual effective interest rate.(excluding processing fee), which is less than market 21%
 Cost of fund is lower because loan rose at lower ROI from Venture Capitalist ,Stock Market and Private Equity
 SKS made an IPO in 2010
 Keep check on services of employees involved in the fraud which have been terminated and the company is in the
process of taking legal action, according to the company's latest annual report.
 Company is hopeful that the profitability on ROA will be achieved at 3% by expanding business in other states in
India excluding Andhra Pradesh and by the expansion of non- micro-finance business like gold loan. Company is
doing geographical as well as product diversification.
 Now only large MFI company which will not be a bank.
 If MF Bill will pass, will recover Rs 800 crore in Andhra Pradesh.
 SKS credit plus services

18. 7 REASONS WHY SKS MF STOCK WILL CONTINUE TO
UNDER PERFORM
 Malegam Committee Report on MFIs has imposed cap on interest rate, margins, total indebtedness and
tenure of loans.
 The ultimate goal of microfinance is to enable the poor to build assets, increase incomes, reduce vulnerability
to shocks and economic stress and improve quality of life by enabling better access to education and
healthcare, at affordable cost. Value for share holders can be created by earning more profits, paying higher
dividends, professionally managing the company, among others. There is a clash of interest. You cannot
enrich the share holders at the cost of the poorest of the poor.
 Corporate governance issues: Loan to promoters at 0%, poor borrowers @ 19.75 % p.a.
 Look at the insider trading data.
 A microfinance bank may short circuit SKS growth story.
 Narayana Murthy of Infosys is the chairman of business ethics and corporate governance in SKS
Microfinance.
 Venture Capitalists have suffered huge losses, waiting to exit in the near future by booking their losses.

19. SKS MF CONTROVERSY
 In 2012, cut 15000 jobs and closed 78 branches in Andhra Pradesh.
 Auditors of SKS informed during year there were instances of cash embezzlements Rs 1,27,62,403; loans given to
non-existent borrowers on basis of fictitious documentation created by employees Rs 83,32,870 and misappropriation
of cash by external party to Rs 4,55,000.
 Many blamed MFIs – which give small loans to them at higher interest rate, put them further to more poverty with
indebtedness then persistent pressure and coercion for repayment so relentlessly that many took their own lives.
 SKS facing recovery problems in Gujarat and West Bengal after the crisis of Andhra Pradesh in last October, 2011.
 SKS has come under IRDA's scanner for violating norms in selling insurance policies to its borrowers for charging
higher commission on sale of insurance policies.
 Fails to Get Small Bank License, Stock Sinks 20%

20. SOCIAL IMPACT CREATED ON WOMEN
 Women after joining MFI became more mature in decision making, material knowledge about working
of MFI and loan settlement procedure, sharing information to others comfortably, ideas and access to
money and potential which are unutilized.
 Awareness about political & legal among the societies. Recently gave the vote in Gram Panchayat
election.
 Socio-economic status up gradation.
 Autonomy for life choices regarding the issue on family planning.
 Women position in life/society improves as they are financially independent.
 Positive approach to child development, providing the best education and basics amenities.
 To provide more credit facilities to expand their business or investing money in husband or son’s
business.
 Awareness about the importance of saving, investing and insurance.

21. GLIMPSE OF
FIELD VISIT