Akula quits SKS, Ravikumar is interim chairman

Founder and executive chairman of the country's only listed micro finance institution SKS Microfinance Vikram Akula today resigned from the board in wake of the huge losses suffered by the Hyderabad-based firm.

Akula, who had a troubled association with the company, would continue with SKS as a "consultant" till March 2012 and "assist with the transition." The company did not give any reason for his resignation. Terming the resignation of Akula as "voluntary", it said it has appointed P H Ravikumar as its interim Non-executive Chairman.

After 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."

Speaking to reporters after a board meeting, SKS Chief Financial Officer Dilli Raj told reporters, "Ravikumar, who has been an independent director with us for the past five years and chair of the audit committee for the past four years, has been appointed as non-executive Chairman for the interim." Raj said no severance package has been given to Akula. "On the issue of compensation, I confirm there is no severance package. If there is compensation, that is not material in comparison with our annual operating expenditure."

The company had signed certain non-compete and confidentiality agreements with Akula, who founded the company in December 1997 and made history when his IPO was overbought 14 times and was listed with 11% premium over issue price of Rs 985 in July 2010.

"The company has signed certain agreements with Akula relating to confidentiality, non-compete clauses etc," Raj said, without going into specifics.