Mumbai (The Economic Times): Shares in SKS Microfinance , the country’s only listed microfinance lender, tumbled to a record low on late Monday afternoon, on the back of renewed fears about the sector’s future profitability. Reports of abusive practices in microfinance have brought much scrutiny and threats of a government crackdown.
Citigroup downgraded SKS to “sell” from “hold” on Thursday and cut its earnings estimates to factor in reduced lending rates, higher funding costs and lower growth.
At 3:14 p.m. (0944 GMT), shares in SKS tumbled as much as 9.5 percent to 599 rupees, their lowest ever since they listed in August, while the main stock index traded 0.1 percent higher. Read more…..
Hat tip to Sanjeev Kulkarni
