SKS Microfinance rides 5% on Microfinance Bill hope

MUMBAI: Shares of micro lender SKS Microfinance surged nearly 5% on Monday, after reports that the government may table the Microfinance Bill in the ongoing winter session of Parliament. The draft bill proposes to make it mandatory for micro-finance institutions to register with the RBI and have minimum equity capital of Rs 5 lakh. SKS Microfinance ended the day at Rs 107.60 on the BSE. The stock has gained 19% over the past one week.

About 17 lakh shares exchanged hands on bourses on Monday. “Investors expect the government to table Microfinance Bill in this session. If the bill gets passed, it will greatly benefit microfinance companies,” said Ambareesh Baliga, COO of Way2Wealth Brokers.