Mumbai, July 13: SKS Microfinance Ltd today raised a red flag warning that it could report an operational loss of up to Rs 50 crore in the first quarter ended June 30 as it was unable to generate enough income to meet its finance costs.

The microlender’s announcement triggered a sharp slide in its stock price, which plunged 7.26 per cent to close at Rs 84.30 on the BSE.

In its filing to the bourses, SKS Microfinance said it had posted higher cash and bank balances of Rs 689.98 crore as on March 31, 2012, because of a surge in the amount of loans assigned to it at the end of the quarter. This was, however, not quickly re-deployed, resulting in a relatively lower outstanding portfolio of loans.

“The company expects to incur an operational loss in the first quarter of fiscal 2013 that may range between Rs 30 crore to 50 crore or higher. (The) adverse financial performance of the company may continue for the rest of fiscal 2013,” it added.