Akula: Exit mode

Mumbai, Nov. 23: Vikram Akula, founder and chairman of SKS Microfinance, today quit the board of the company he had set up around 13 years ago. P.H. Ravikumar will take over as the new non-executive chairman-interim.

“Vikram Akula has tendered his resignation as the executive chairman and director with immediate effect. The board has accepted the same,” SKS Microfinance said in a filing to the Bombay Stock Exchange.

The company did not give any reason for his resignation.

After tendering his resignation, Akula said, “The current leadership is well equipped to take SKS into the next phase of its evolution. I will, of course, remain committed to the sector, and will continue my involvement in the industry at a policy level. I will also be involved in a mobile banking initiative.”

For the quarter ended September 30, SKS Microfinance suffered a net loss of Rs 384 crore against Rs 80.54 crore profit in the corresponding period a year ago.

Shares of SKS closed 4.98 per cent higher at Rs 116 on the BSE today even as the announcement came after market hours.

In a filing to the BSE, SKS said Akula had entered into a “non-compete and non-solicitation” agreement with the company.

The development came after a board meeting of the listed microfinance company here today. News of Akula’s exit has been doing the rounds over the past couple of days. Various reasons were attributed such as differences over business strategies with other board members and the mounting losses of the company.

However, sources said the resignation was voluntary and there was no pressure from the board.

An official statement late in the evening said Ravikumar would take over with immediate effect. Ravikumar is the former CEO of NCDEX and has been on the board of SKS Microfinance for five years.

SKS Microfinance said Akula would remain a consultant till the end of March 2012.

Though there have been reports that Akula would be offered a severance package, it is understood that there is no cash component attached to his resignation.

Akula holds over 3 per cent in SKS Microfinance and is likely to hold on to that stake as there are lock-in conditions attached.

Market circles said it now remained to be seen if there was any change in the business strategy of SKS.