SKS Microfinance is aiming to recover Rs 600 crore in the stock market after the company’s shares rose following an announcement by the union cabinet to regulate the micro finance industry in the country.

The shares of the country’s only listed micro finance company, SKS Microfinance increased significantly on the domestic stock exchange following a decision by the union cabinet to begin regulation of the micro finance industry and bring the micro lenders under the jurisdiction of the Reserve Bank of India (RBI).

The bill to begin regulation of the micro finance sector will now be introduced in the parliament. The new regulations will make it mandatory for micro finance institutions (MFI) to be registered with the Reserve Bank and also have minimum net-owned funds of Rs 5 lakh.

Dilli Raj, CFO, SKS Microfinance said, “Once the legislative process is through, we will start recovering loan. Efforts will be to recover loans, but we are hoping to cover at least 40-50% which is Rs 500-600 crore of our AP book.”

SKS Microfinance has recorded a troubling loss of Rs. 330 crore in the fourth quarter till 31, March 2012.

The company’s income dropped 63 per cent in the quarter compared to the same quarter in the previous financial year. The company recorded a total income of Rs 66.15 crore when compared with Rs 174.73 crore. Its net loss was at Rs 330 crore for as the copany made write-offs worth Rs 272 crore.