After 13 years at the helm, Mr Vikram Akula, Founder and Executive Chairman, SKS Microfinance Ltd, called it quits on Wednesday.
Mr Akula ‘voluntarily' stepped down with immediate effect amidst raging controversy on the direction in which the beleaguered company should be steered, corporate governance issues, mounting bad loans, low recoveries and rising losses.
Mr Puranam Hayagreeva Ravikumar, who has been on the board of SKS for five years, has taken over as the new interim non-executive chairman.
Mr Ravikumar has 37 years of experience in the financial services sector, including 32 years as a commercial banker. He was the founder MD and CEO of National Commodity and Derivatives Exchange Ltd (NCDEX).
Despite quitting the board, the ‘poster-boy' of the Indian microfinance sector will remain a consultant to SKS until March-end 2012 to assist with the transition.
Company officials declined to give any reason why Dr Akula demitted office.
Mr Akula has signed certain agreements relating to confidentiality and non-competition, said Mr S. Dilli Raj, Chief Financial Officer, SKS Microfinance.
“I can confirm that the resignation is voluntary. There is no severance package. Compensation, if any, will not have any material impact on the operating expenses of the company,” explained Mr Raj.
The woes for the country's only listed microfinance firm began after the Andhra Pradesh Government passed a law last year imposing severe restrictions on the functioning of all MFIs in the State.
The law was enacted due to reports that these institutions were charging usurious interest rates and employing strong-arm tactics for making recoveries.
SKS posted a net loss of Rs 384 crore in the second quarter ended September 30, 2011. In the corresponding previous quarter, the Hyderabad-based company had earned a Rs 80.54-crore profit.
Since it got listed on the bourses (issue price of Rs 985 per share) in August 2010, the SKS stock touched a high of Rs 1,491.50 on September 28 , 2010 and a low of Rs 116 on November 23, 2011. kram@thehindu.co.in