SKS Micro Completes Rs 243 Crore Securitisation Transaction

New Delhi: SKS Microfinance Ltd on Saturday said it has completed a second securitisation transaction for a pool value of Rs 243.08 crore.

"SKS Microfinance today completed the second securitisation transaction for a pool value of Rs 243.08 crore during 2015-16. With this transaction, the total sum of securitisation completed during 2015-16 is Rs 326.73 crore," it said in a filing on the BSE.

SKS said the entire pool qualifies for priority sector treatment as per Reserve Bank of India's priority sector lending guidelines.

It said the pool value has a high degree of safety regarding timely servicing of financial obligations. "Such instruments carry a very low credit risk," it added.

Securitisation means creation of a financial instrument by an issuer by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.

It can encompass any type of financial asset and promotes liquidity in the marketplace.