http://akprabhakar.blogspot.com/2010/10/sksmicrofinance-avoid-let-dust-settle.html Saturday, October 16, 2010, SKSMICROFINANCE-Avoid let the dust settle - Avoid –SKSMICROFIN Cmp Rs.1135
Impact of Banks exposure to MFI, this would be important factor to be watched as Rs.12,000crs has been exposed and this business of MFI (Micro Finance) in current form can be wiped off in my view and with few banks like YESBANK, AXISBANK, INDUSINDBANK, ICICIBANK mostly private banks having exposure of more than 1% of their loan book can have impact on the stocks. I have attached website links to support my view.
http://prabhakar-views.blogspot.com/2010/10/micro-finance-will-this-business.html MICRO Finance will this Business sustain
SKSMICROFINANCE we came with negative view on the stock saying that stock value can be below 650 below now we downgrade more but wish not to give any downside target, any business which has too much government control can have near term impact and Valuation of SKSMICROFINANCE is on higher side in my view as I come from a NBFC back ground and real impact is really high. Government of Tamil Nadu imposed regulation on Micro finance in 2004 and total industry is now gone.
http://www.thehindubusinessline.com/2010/11/18/stories/2010111852980600.htm Banks are seriously concerned about the possibility of defaults from microfinance institutions (MFIs) and have started pressing for repayments. “IBA is in the process of convening a special meeting to discuss the issue soon. The total exposure of banks to the MFI sector so far could be well above Rs 12,000 crore”.
http://economictimes.indiatimes.com/articleshow/6917472.cms?prtpage=1 Cash strapped MFIs seek Rs 1,000 cr from banks
http://www.thehindubusinessline.com/2010/11/18/stories/2010111851590400.htm Fitch Ratings on Tuesday said that it is unlikely to give the highest investment grade for microfinance securitisations.
