Hyderabad, Jan 27 (PTI) The enactment of a new law tocontrol microfinance institutions in Andhra Pradesh has hitthe number of disbursements and quantum of loans in theDecember quarter by SKS Microfinance which has a largepresence in the state.
The number of loan disbursements by the company duringthe December quarter went down sharply to 13.48 lakh from28.33 lakh in the previous quarter showing a fall of 52 percent.
The company said total loan amount disbursed to smallborrowers stood at Rs 1590 crore in the third quarter asagainst Rs 3171 crore in the second quarter registering adecline of 50 per cent.
According to sources, the shortfall is due to theprevailing situation in Andhra Pradesh where MFIs includingSKS are finding it difficult to go for fresh loans given thestringent rules imposed by the state government.
"While the collections in Andhra Pradesh stood below 44per cent, the same was 100 per cent in Kerala while in otherstates it was above 95 per cent," SKS Microfinance said in astatement.
Andhra Pradesh which accounts for nearly 30 per cent ofits loan portfolio, has bad debts of Rs 1.16 crore. The totalbad debts that were written off throughout the country were Rs8.56 crore. Net NPA which was Rs 5 crore in Q2 has moved up tonearly Rs 11 crore in Q3. .