No micro matter: SKS may ask Akula to leave
Vikram Akula, the founder-chairman of SKS, India's largest microfinance institution, is likely to be asked to exit the company. His exit will bring an end to a saga of major organisational changes in India's largest micro-finance institution over the last 18 months. HT reports.business Updated: Nov 22, 2011 20:59 IST
Vikram Akula, the founder-chairman of SKS, India's largest microfinance institution, is likely to be asked to exit the company. His exit will bring an end to a saga of major organisational changes in India's largest micro-finance institution over the last 18 months.
The company's board will likely to meet on Wednesday to formally approve a decision to rid Akula of his current position as executive chairman, a source, who did not wish to be identified, said.
PH Ravikumar, an independent director on the board of SKS India, is strongly tipped to take over as the non executive chairman of SKS that has announced plans to raise Rs 900 crore through a qualified institutional placement.
Sources indicated that Akula is likely to be given a severance package of about Rs 9 crore, although there are indications that he is likely contest his removal and sue the board.
In October last year, the company, which was hailed by peers and analysts for a successful IPO that was over-subscribed 13 times, sacked its chief executive officer Suresh Gurnani as share prices tumbled on reports that the micro-lender was resorting to coercive methods for forcing borrowers to pay up.
With microfinance institutions (MFIs) drawing flak for their strong arm tactics in recovering loans, the government in July released the Draft Microfinance Bill setting out the rules under which MFIs should operate.
The bill has not put any cap on the interest rates charged by the MFIs, but gives the RBI sweeping powers to regulate lending rates and margins apart from fixing prudential norms.