SKS Microfinance Ltd changes its name to Bharat Financial Inclusion

Hyderabad: Vikram Akula-founded micro lender SKS Microfinance Ltd on Wednesday decided to change its name to Bharat Financial Inclusion Limited.

According to a statement issued by the company, Bharat Financial Inclusion Limited reflects the new brand and its delivery capabilities as ‘Bharat’, the Sanskrit name of India, emphasises the company’s unique distinction of having a formidable, predominantly rural network across the country.

SKS Microfinance changed the face of microfinance industry by turning itself into a for-profit company, inviting displeasure of microfinance pioneer and Grameen Bank founder Muhammad Yunus.

“The corporate name change decision has been taken in view of the fact that the company’s core has undergone a transformation equipping it to play a major complimentary role in fulfilling the national priority of financial inclusion,” the statement added.

The decision to change its name — where SKS is an abbreviation of Swayam Krushi Sangham — may also be an attempt to move from its history of being established along the lines of self-help group. Initially, SKS Trusts had a significant stake in the company.

Though the company was founded in Hyderabad, it shifted its corporate headquarters to Mumbai after the Andhra Pradesh government imposed severe restrictions on micro lending following a spate of suicides.

After curbs and defaults in AP, the company had gone through difficult times. However, it bounced to become one of the largest micro lenders in the country.
Prior to restrictions on micro lending in combined Andhra Pradesh, SKS Microfinance was the country’s largest micro lender and the first listed firm in the space. Currently, it is present across 18 states covering one lakh villages.