Mumbai, Nov. 18: SKS Microfinance Ltd today voiced concern over its revenue and profitability taking a hit on account of the ordinance passed by the Andhra Pradesh government, leading to its shares crashing 20 per cent on the bourses.

On the Bombay Stock Exchange, the scrip tumbled Rs 158.55, or 19.84 per cent, to a new low of Rs 640.70.

The share had crashed 12 per cent in the previous trading session.

SKS’s Andhra exposure makes up as much as a quarter of its loans, and investor fears have been heightened by the ordinance and the sacking of Suresh Gurumani from the post of chief executive officer.

There are fears that the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Ordinance, 2010 can impact the financials of companies such as SKS and hurt bank credit to the sector.

In a communication to the stock exchanges, SKS Microfinance said that it had commenced collections that were pending for the last 30 days.

“The collections are lower than normal on account of transition from weekly to monthly cycle. If this is not resolved, the reduction in collections in Andhra Pradesh is likely to have an impact on the revenues, profitability and asset quality of the Andhra Pradesh portfolio,’’ SKS said.

According to the ordinance, microfinance institutions should increase the loan repayment period to 30 days against the earlier practice of weekly collections.