Swot Analysis of SKS Microfinance Limited

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Mukti Kumar Nanda

Abstract

Microfinance is all about providing small value loans and other financial services to the weaker section of the society in order to improve their standard of living. SKS Microfinance Limited founded by Vikram Akula is a RBI registered for profit NBFC-MFI. It is in operation in 19 states of our country. It is one of the largest MFIs in terms of gross loan portfolio and number of borrowers. The company extends collateral free income generating micro credit to the poor women of the rural and urban areas. SKS Microfinance Limited is the first MFI in India to be listed in stock exchanges such as BSE and NSE after its successful IPO in the year 2010. The strengths such as experience, expertise, pan-India presence, multiple and low cost funding, sound financial position help the company in achieving the corporate mission and vision. The company should educate the borrowers about the various products, and the interest rates which are some of the weaknesses fo the company. However, a lot of opportunities such as huge demand for microfinance products and huge untapped market may be explored by the company and at the same time the company must be vigilant about the various threats such as competition, political uncertainty and over-leveraging of the borrowers which may come as obstacle in its growth and expansion.

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