January 31, 2006
Small Industries Development Bank of India (SIDBI) makes first microfinance equity investment in SKS

Hyderabad – On January 31, 2006, SIDBI made their first equity investment in a microfinance institution by presenting two SKS clients, Rathnamma and Balamanni from Kothulapur Village in Medak District, with a check for $113,095 (Rs. 50,00,000), half the total investment amount of $226,192 (Rs. 1,00,00,000) corresponding to a 7% stake in SKS. This is the first of its kind investment for SIDBI, who has long been a supporter of microfinance through loans and capacity building but never through direct equity investment.

“This is a landmark event for the entire microfinance industry in India,” said SKS Chief Accountant, P V Kalyanachakrawarthy. “It signifies a strong commitment by SIDBI and a level of confidence that has yet to be seen by domestic partners. We are honored that SIDBI chose SKS as their first equity investment and we look forward to working with them to achieve our long-term goals.”

“Over the past four years, we have gotten to know the people and processes at SKS and have always been impressed with their professional management and capacity for growth,” said SIDBI General Manager, Nageswar Rao. They lead the industry in financial transparency and disclosure, and are exactly the type of partner we want to build stronger relationships with.”
 
     
   

 
 
 

 
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