UPDATE 1 - SKS Microfinance opts against debt restructure

* SKS says no to a corporate debt restructure

* Says will explore other possibilities of additional funding (Adds details, quotes)

By Arjun Kashyap

MUMBAI, March 16 (Reuters) - SKS Microfinance , India's largest and only publicly listed microfinance institution, announced on Wednesday it will choose financing from banks and financial institutions over a corporate debt restructure, according to a company filing.

"The company is well capitalized," said a company spokesperson, saying SKS would look at alternative options like bank funding and securitization at a later date.

The announcement comes at a time when traditional means of funding have dried up for the microfinance sector after the state of Andhra Pradesh late last year slapped restrictive laws on India's microlenders.

Andhra Pradesh, which had the largest microfinance market in India, enacted legislation to regulate the industry following complaints about high interest rates, aggressive recovery practices and overextended borrowers.

"This is the worst the industry has seen since inception. We are not going to go back to the days when an abundance of capital and an abundance of debt were around us," Samit Ghosh, CEO of Ujjivan, a large for-profit operator based in Bangalore, said at a microfinance conference in New Delhi on Tuesday.

Shares of SKS Microfinance ended up 0.6 percent on Wednesday. (Additional reporting by Anurag Kotoky in New Delhi; Editing by Bryson Hull)