SHARE Microfin Receives Highest MFI Grading from ICRA

Becomes the first MFI to receive the peak rating of M1

Mumbai, September 28, 2010: SHARE Microfin Limited, today announced that ICRA has assigned the highest Microfinance Grading of M1. The M1 grading indicates that SHARE Microfin has the highest ability to run microfinance operations in a sustainable manner.

The company received the top grading on the back of established branch network, sustained profitability achieved through strict cost control and maintenance of quality assets, as well as excellent corporate governance practices. SHARE is the only Indian MFI to obtain the highest grading of M1 from ICRA. The revised grading from M2 to M1 stands good until September 2011.

Commenting on the accomplishment, Mr. Udaia Kumar, Managing Director, SHARE Microfin Ltd. said, “The recent upgrade to M1 by ICRA clearly indicates our continued commitment to run efficient operations while fulfilling our responsibility to provide micro credit to more customers. The highest grading also affirms our confidence that the company has in place all the ingredients for sustained growth.”

ICRA spokesperson said, “Efficient technology systems, access to diverse funding sources and ability to attract and retain competent human resources will continue to enable SHARE maintain high quality operations. We believe SHARE is poised to grow rapidly by taking advantage of huge microfinance opportunities in the country.”

Apart from the MFI rating, ICRA has also upgraded SHARE’s existing long term Bank loan rating from LBBB+ to LA- and the Short term rating from A2+ to A1.

The upward revisions in grading by ICRA reflect sound performance of SHARE in the past three years. The company has expanded its operations substantially from FY2008 to FY2010. The borrower base of the company went up from 10 lakh as on March 2008 to 25 lakh as on June 2010. At the same time the company successfully maintained asset quality (4 weeks+ delinquencies stood at 0.23% as on June-2010). Similarly, SHARE has succeeded in substantially bringing down its operating costs. The cost to income ratio dropped from 75% in FY2008 to 41% in FY2010 and further to 32% in Q1 FY2011.

About SHARE Microfin Limited (http://www.sharemicrofin.com)

SHARE Microfin Limited (SHARE) is a regulated Non-Banking Financial Company (NBFC) providing financial and support services to the marginalized sections in society, particularly to women at the bottom of the pyramid across India through the Joint Liability Mechanism. SHARE Microfin Limited was founded by Mr. Udaia Kumar, pioneer of microfinance movement in India, in the year 1999-2000 as public limited company. It became a registered NBFC in 2000 and was the first Microfinance Institution (MFI) to obtain a NBFC (Non Deposit taking) license. SHARE currently serves 33.37 lakh members across 19 Indian states with more than 50% of the portfolio outside Andhra Pradesh.

Shalaka, Maharshi Karve Marg, Cooperage, Mumbai - 400 021.

This release was published on openPR.