Bharat Financial Inclusion

In 1997, inspired by Grameen Bank, Vikram Akula founded Swayam Krishi Sangham (SKS Society) as a non-profit organization.[7][8] However, unlike Grameen bank, SKS used an aggressive commission based system to encourage loans, thus forming a network of loan marketers who were not direct employees of SKS, but worked on a commission basis in smaller villages of Andhra Pradesh. SKS used a network of loan sharks to pursue matters with defaulters.[8]

In 2003, Akula created a for-profit arm under the name of SKS Microfinance Private Limited. In order to capitalize the new business, Akula established the SKS Mutual Benefit Trusts (MBTs), which fundraised among women from Andhra Pradesh villages. The Mutual Benefit Trusts were used as vehicles to funnel grants for the non-profit SKS Society to the for-profit SKS Microfinance, a move that would be illegal to do directly. In 2005, SKS Microfinance raises enough funds to become a non-banking financial company.[9][10]

In 2007, SKS Microfinance raised $11.5 million through equity investments led by Sequoia Capital.[11] In 2008, it further raised $74.5 million through equity investments led by Sandstone Capital.[12]

On 28 July 2010, SKS Microfinance debuted on the Bombay Stock Exchange with an IPO that was oversubscribed 14 times. Muhammad Yunus expressed concern that going public would put the demands of shareholders ahead of the poor.[13] He added further, "If they do it, I cannot stop them but I would encourage genuine Microcredit programs."[14]

SKS founder Vikram Akula resigned from the board on 23 November 2011. In 2015, P. H. Ravi Kumar became the non-executive chairman.[15] The company's shares meanwhile lost 96% of their value from a high of Rs. 1491.50 in 2010.[16]

In September 2010, reports surfaced in the media of nearly 200 suicides by defaulters of a number of micro finance institutions, including SKS finance. This led to an enquiry by the Andhra Pradesh government.

In a 2012 cover story, The Hindu[8] reported that a marked shift took place in the values and incentives of SKS in 2008, after large scale investment began to flow in from venture capitalists and prospectors including Boston-based Sandstone Capital and Sequoia Capital.

An independent investigation commissioned by the company linked SKS employees to at least seven suicides of creditors in Andhra Pradesh. A second investigation said SKS may have been involved in two other suicide cases.[17] In 2012, SKS Microfinance cut 1200 jobs and closed 78 branches in Andhra Pradesh.[18] Interviews with family members of the deceased, by BBC suggested that the reason for these suicides appeared to be large sub-prime loans taken by the villagers, with the active encouragement of SKS loan agents.[19]

In 2014, the investors in the SKS Microfinance, Mauritius Unitus Corporation, Sequoia Capital India Growth Investments and SKS Mutual Benefit Trust as well as its founder Vikam Akula relinquished their roles as promoters.[20]

In 2016, SKS Microfinance was renamed to Bharat Financial Inclusion Ltd.[21]

In 2017, the company launched a loan approval system based on Adhaar to reduce the time and cost involved in the loan approval process.[22] In the same year, it also launched its Kirana store (general store) service which allowed its customers to do financial transactions by visiting its designated stores.[23]

Later in 2017, the company entered into discussions of a possible merger with IndusInd Bank.[24] The merger received approvals from Reserve Bank of India, National Stock Exchange of India and Bombay Stock Exchange later in 2018.[25]