SKS Microfinance, the country’s largest micro-lender, plans to raise up to Rs 900 crore by way of qualified institutional place­ment. The company’s board approved the decision on Wednesday.

The company raised Rs 1,654 crore by way of an initial public offering (IPO) in July last year.

The company will use the fund to focus on growth in non-Andhra Pradesh states to de-risk its present business. The company was earlier contemplating vario­us ways to raise fund, as bank loans were hard to come by because of appre­hension expressed by most lenders.

SKS and Basix are among the top microfinance NBFCs that had not opted for the corporate debt-restructuring package, whi­ch was sought by others as recoveries had crashed owi­ng to the crisis. The comp­any also informed the bour­ses that it would increase authorised share capital fro­m Rs 95 crore to Rs 135 crore. It has also instituted employee stock option plan.

The industry has been going through rough weather after the Andhra Pradesh government intro­duced an act last year to regulate their activities. The Andhra Pradesh Microfin­ance Institutions (Regu­lation of Moneylending) Act, 2010, requires MFIs to declare interest rates upf­ront and disclose all details relating to their borrowers.

The act has hampered micro-finance activity in the state and MFIs that were accused of charging very high interest rates on the loans are now finding it hard to get funds from banks.