Founder and chairman of the only listed microfinance institution SKS Microfinance Vikram Akula today resigned from the board with immediate effect in the wake of huge losses suffered by the Hyderabad-based firm.
The company has appointed P H Ravi Kumar, independent director, as the interim non-executive chairman.
"Vikram Akula has tendered his resignation as the executive chairman and director from the Board of Directors of the company with immediate effect. The Board has accepted the same with immediate effect," SKS Microfinance said in a filing to the Bombay Stock Exchange. The company did not give any reason for his resignation.
For the quarter ended September 30, the SKS Microfinance reported a net loss of Rs 384 crore (Rs 3.84 billion), against a Rs 80.54 crore (Rs 805 million)
Shares of SKS closed 4.98 per cent higher at Rs 116 on the BSE.
SKS pushed the microfinance sector into public limelight after the company mopped up over Rs 1,650 crore (around $350 million) through its initial share sale in July 2010.
The public issue, which attracted huge participation from retail investors, also stoked expectations of more industry players tapping the capital market.
The company, however, witnessed some low moments following the ouster of SKS Microfinance CEO Suresh Gurmani in October last year, who was at the helm of the micro finance lender at the time of its dazzling IPO. He was replaced by M R Rao as the MD and CEO for the next three years.
Gurmani's removal sparked off fresh concerns about corporate governance among MFIs.