Narayana Murthy speaks out, wants Akula to be open & fair
NR Narayana Murthy, the founder of IT bellwether Infosys Technologies, has expressed displeasure at the hush-hush manner in which the affairs at SKS Microfinance are being conducted. In a communique, Murthy, an investor in SKS Microfinance through his venture capital fund Catamaran, asked the company to be “open, honest and fair in all matters dealing with every stakeholder.”
However, the company continues to take it easy. Its second quarter board meeting on October 22 was held behind iron curtains with a gag order on the directors against talking to media or making any comment on the boardroom developments. Read the rest on DNA
Moneylife learns that at its board meeting on Friday, 22nd October, the SKS Microfinance board is understood to have decided that going to the Extra Ordinary General Meeting (EGM) at this time — as directed by the Andhra Pradesh Court — would only lead to the washing of more dirty linen in public.
Our sources say that although SKS’s founder Vikram Akula and director Paresh Patel of Sandstone Capital were in favour of sticking to the decision of sacking Mr Gurumani, the other independent directors apparently did not want to precipitate the situation.
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The two faces of Microfinance
The spat between SKS founder Akula and sacked CEO Gurumani shows an industry in flux
SKS Microfinance founder Vikram Akula and sacked CEO Suresh Gurumani are a study in contrasts. A Fulbright scholar, Akula spent nearly two decades working in rural India manifested in his now-famous khadi kurtas. With nearly the same number of years at Standard Chartered, PricewaterhouseCoopers and Barclays, Gurumani is more comfortable in conservative suits. Read the rest on Sify
The Microfinance Mess
While the current attacks on microfinance are unwarranted, overblown claims about it also need to be tempered
Microfinance has had a quick slide down the popularity charts— from being celebrated as a magic wand against poverty to being condemned as a business riddled with loan sharks.
Indian microfinanciers are facing the regulatory heat right now, for the high interest rates they charge and the strong-arm tactics some have used to recover loans given to poor borrowers. Read the rest on Live Mint