Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 9 pages
Data source: Published sources
Topics:
What is microfinance?; Indian microfinance sector; SKS Microfinance Private Limited; Integrated rural development programme (IRDP); Financial inclusion; Growth strategy; Vikram Akula; Management information system (MIS); Non-banking finance company (NBFC); SKS acceleration model; State Bank of India; Political risk; SKS shareholding pattern; Capital and capacity generation; Cost effectiveness
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Abstract
A non-profit, non-governmental organisation, SKS Microfinance Private Limited, established in 1998 in Andhra Pradesh, India, has demonstrated remarkable growth in its client base since its inception. It provided various microfinance products and services through an innovative business model known as the 'SKS Acceleration Model' focusing on three key aspects like capital, capacity and cost. To increase its reach in the growing Indian microfinance sector, it became a non-banking finance company to strengthen its microfinance operations. But, the company faced challenges in terms of attracting private capital, reducing transaction costs and interest rates, and a strong regulatory environment. With competition coming from commercial and foreign banks, the microfinance experts were sceptical if SKS would be able to sustain its innovative business model in the long run.
Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 11 pages
Data source: Published sources
Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 2 pages
Data source: Published sources
Topics:
What is microfinance?; Indian microfinance sector; SKS Microfinance Private Limited; Integrated rural development programme (IRDP); Financial inclusion; Growth strategy; Vikram Akula; Management information system (MIS); Non-banking finance company (NBFC); SKS acceleration model; State Bank of India; Political risk; SKS shareholding pattern; Capital and capacity generation; Cost effectiveness
About
Abstract
A non-profit, non-governmental organisation, SKS Microfinance Private Limited, established in 1998 in Andhra Pradesh, India, has demonstrated remarkable growth in its client base since its inception. It provided various microfinance products and services through an innovative business model known as the 'SKS Acceleration Model' focusing on three key aspects like capital, capacity and cost. To increase its reach in the growing Indian microfinance sector, it became a non-banking finance company to strengthen its microfinance operations. But, the company faced challenges in terms of attracting private capital, reducing transaction costs and interest rates, and a strong regulatory environment. With competition coming from commercial and foreign banks, the microfinance experts were sceptical if SKS would be able to sustain its innovative business model in the long run.
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Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 11 pages
Data source: Published sources
Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 2 pages
Data source: Published sources
Topics:
What is microfinance?; Indian microfinance sector; SKS Microfinance Private Limited; Integrated rural development programme (IRDP); Financial inclusion; Growth strategy; Vikram Akula; Management information system (MIS); Non-banking finance company (NBFC); SKS acceleration model; State Bank of India; Political risk; SKS shareholding pattern; Capital and capacity generation; Cost effectiveness