Vikram Akula, the Founder and Chairman of the Indian microfinance institution (MFI) SKS Microfinance, has resigned from its board of directors.  The resignation came shortly after the firm announced losses of USD 81.5 million for the quarter ending 30 September. SKS earned profits of USD 17 million during the corresponding period a year ago.

According to 2010 data from the US-based nonprofit data provider Microfinance Information Exchange (MIX), SKS Microfinance holds total assets of USD 1.2 billion, a gross loan portfolio of USD 1.2 billion, approximately 6.6 million borrowers, return on assets (ROA) of 6.3 percent and return on equity (ROE) of 22.4 percent.

Abouth SKS Microfinance:
SKS Microfinance is a microfinance institution (MFI) that was launched in 1998. It delivers microfinance products through a group-lending model to impoverished women in India as a for-profit, non-banking finance company. SKS converted into a public limited company in May 2009 and launched an initial public offering on July 28, 2010. Its equity investors include Quantum Hedge Fund, Sequoia Capital, Vinod Khosla, Small Industries Development Bank of India, Bajaj Allianz, Yatish Trading, Kismet Capital, Sandstone Capital, Silicon Valley Bank and Unitus. SKS currently trades on the Bombay Stock Exchange. According to 2010 data from the US-based nonprofit data provider Microfinance Information Exchange (MIX), SKS Microfinance holds total assets of USD 1.2 billion, a gross loan portfolio of USD 1.2 billion, approximately 6.6 million borrowers, return on assets (ROA) of 6.3 percent and return on equity (ROE) of 22.4 percent.

By Ariana Malushi, Research Associate

Sources and Additional Resources

Times of India: ” Vikram Akula quits SKS Microfinance” Nov 23, 2011
http://timesofindia.indiatimes.com/business/india-business/Vikram-Akula-quits-SKS-Microfinance/articleshow/10845257.cms

MicroCapital.org Story, November 12, 2011 “MICROCAPITAL BRIEF: Shares of India’s SKS Microfinance Fall 10% Following Announcement of $78m Loss During Quarter Ending September 2011”http://www.microcapital.org/microcapital-brief-shares-of-indias-sks-microfinance-fall-10-following-annaouncement-of-78m-loss-during-quarter-ending-september-2011/

MicroCapital.org Story, November 8, 2011 “MICROCAPITAL BRIEF: India’s SKS Microfinance to Raise $184m via Share Sale” http://www.microcapital.org/microcapital-brief-india’s-sks-microfinance-to-raise-184m-via-share-sale/

MicroCapital Universe Profile, SKS http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance

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