Bharat Financial Inclusion Ltd:
Bharat Financial Inclusion Ltd. has been occupying the top-most position amongst the NBFC- MFIs (Non-Banking Financial Company: Micro Finance Institution) in India. The company, formerly named as SKS Microfinance Ltd, is the first MFI to be recognized as a public limited, was established in September 2003.
Having an operational network in the 16 states (other than Telangana and Andhra Pradesh) of the country with 16, 021 employees and 1,567 branches, as on March 31, 2018. The motive of the company is to provide small valued loans along with some financial services to the women, belonging to an economically poor background. These women, the clients of the firm, are classified as Members, while the members having outstanding loans are termed as Borrowers. The company offers the loans only for small business purposes, or any other sort of income-gaining goals but not for personal consumption.
About Company Information:
In September 2003, SKS Microfinance was incepted as a private limited concern, named as SKS Microfinance Pvt Ltd, after two years of which the company was recognized as a non-banking financial institution when a registration certificate was issued by Reserve Bank of India on January 2005. The company became a public limited company in May 2009, and it was renamed as SKS Microfinance Ltd.
An agreement took place between the company and HDFC Technology license and service usage regarding housing finance, in January 2010. Company’s bank accounts in 585 branches came under an online interlink through CMS, as a consequence of the tie-up that took place between the company with State Bank of India, State Bank of Mysore and State Bank of Hyderabad.
An MoU was signed between the company and Future Group in February 2010, regarding the wholesale purchase and supply in Kirana Stores, at New Delhi. By the completion of the Initial Public Offering, the company was chosen to be enlisted on the Bombay Stock Exchange as well as in the National Stock Exchange in August 2010.
In 2011, a peril was faced by the company as the AP MFI Act, 2011 was implemented in the undivided Andhra Pradesh. The act, since introduced several critical restrictions upon the activities of microfinance institutions, the microfinance companies, including Bharat Financial Inclusions, active on the undivided AP raised questions against the validity of the act. As a result of the turmoil in Andhra Pradesh Bharat Financial Inclusions experienced deterioration during the consecutive financial year of 2011-12 and 2012-13. Although the company was found successful in repaying all the debt it had during this turmoil condition of Andhra’s microfinance business.
The company achieved tremendous success when the Reserve Bank of India in November 2013 gave recognition to the company as Non-Banking Financial Company—Micro Finance Institution (NBFC-MFI), a non-deposit acquiring financial company, having at least 85% qualifying assets. The company, through Qualified Institutional Placement, raised its capital to Rs.397.6 crores and Rs.750 crores in May 2014 and September 2016 respectively.
The company raised its capital to Rs.6, 900.2 crores in FY 2017, which is 5.7% less than that of FY 2016 with a capital of Rs.7,317.4 crores, but 45.8% greater than that of FY 2015 with Rs.5,019.9 crores. A disbursing procedure of 95% of the loan amount straight to the borrower’s account, was carried out by the company.
For initiating the development of Cashless Collections, the company started to have an experiment on Retail Distribution Service Points—the model that was arranged and percolated through the Business Correspondent arrangement with IndusInd Bank Limited for providing the fundamental banking services viz. deposition of cash and repayment of loans, through a retail store during the year ending of 2018.
During 2017-18, the company diversified its fund-sources, resulting in its raise of capital even up to Rs.9, 977.2 crores by several sorts of loans and other commercial papers. The capital amounting during the end of 2017-18 became a milestone as the company surpassed the capital raised during FY17 by 44.6%.
How Bharat Financial Inclusion Ltd, is categorised as a Finance Sector, and Finance and Investment Industry :
Financial and Investments industry comprises the companies that derive its business by providing economical services which encompass a broad range of managing money, credit-card companies, including credit unions, banks, accountancy companies, consumer-finance companies, insurance companies, stock brokerages, individual managers, investment funds, and some government-sponsored enterprises. It also engages in advisory based financial transactions on account of individuals, organisations, and governments.
Bharat Financial Inclusion Ltd is categorised as a Finance Sector, and Finance and Investment Industry. The finance sector is a section that leads the world in terms of equity market capitalization and earnings. The companies that are in the economic enterprise focus mainly on managing money, as their revenue is generated mostly by the sectors from mortgage and loans that gain value as interest rates rise. Also, this industry's economy is made up of institutions and firms that provide financial services to wholesale and retail customers.
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