Comments on: SKS Microfinance files DRHP for an IPO of 1.67 crore equity shares http://www.stockmarkettipz.info/sks-microfinance-files-drhp-ipo-167-crore-equity-shares.html For Free Stock Market Tips, Mutual Fund Information, Personal Finance, IPO Updates, Short / Long Term Investment Advise and Stock Market News Fri, 26 Aug 2011 11:10:28 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: k a prasanna http://www.stockmarkettipz.info/sks-microfinance-files-drhp-ipo-167-crore-equity-shares.html#comment-4699 k a prasanna Tue, 20 Jul 2010 17:26:05 +0000 http://www.stockmarkettipz.info/?p=1493#comment-4699 SKS Micro Finance earned profit before tax of Rs 267.70 crore on the total income of Rs 958.92cr for the FY 2010. The basic is EPS of Rs 33, much more than some of the large software companies. The country’s largest micro financier is exploiting the poorest of the poor in rural India in the name of providing credit access to them. The company charges interest between 27% -36% p.a. on money lent to the poor. On the one hand, the company says, that there is no scope for reducing the interest; on the other hand, the company is posting robust profits year after year. The so-called valuations they are trying to create for the company is to serve for their own selfish motives. That will benefit the handful of shareholders / promoters. Nobel laureate Muhammad Yunus, speaking at the Fairmont Hotel, USA, on May 24, said he is increasingly wary of the direction the booming micro finance industry is taking. “I get very worried when investment funds come to microfinance,” said the founder of Bangladesh’s Grameen Bank, which pioneered the industry by giving small loans to rural women to start their own businesses. “I don’t want to excite businessmen that there is profit to be made here,” he said. SKS Micro Finance earned profit before tax of Rs 267.70 crore on the total income of Rs 958.92cr for the FY 2010. The basic is EPS of Rs 33, much more than some of the large software companies. The country’s largest micro financier is exploiting the poorest of the poor in rural India in the name of providing credit access to them. The company charges interest between 27% -36% p.a. on money lent to the poor. On the one hand, the company says, that there is no scope for reducing the interest; on the other hand, the company is posting robust profits year after year. The so-called valuations they are trying to create for the company is to serve for their own selfish motives. That will benefit the handful of shareholders / promoters.

Nobel laureate Muhammad Yunus, speaking at the Fairmont Hotel, USA, on May 24, said he is increasingly wary of the direction the booming micro finance industry is taking.

“I get very worried when investment funds come to microfinance,” said the founder of Bangladesh’s Grameen Bank, which pioneered the industry by giving small loans to rural women to start their own businesses. “I don’t want to excite businessmen that there is profit to be made here,” he said.

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