SKS reappoints MR Rao as MD and CEO

Development comes against the backdrop of SKS Trusts, the largest shareholder in the MFI, asking company to nominate Vikram Akula on the board

SKS Microfinance Limited, the only listed microfinance institution (MFI) in the country, has reappointed M Ramachandra Rao  as managing director and chief executive officer of the company for a further period of five years (subject to review post three years) with effect from October 4, 2013.

The MFI sent a communique to this effect to the stock exchanges on Thursday.

The development comes against the backdrop of SKS Trusts,  the largest shareholder in the MFI,  asking the company to nominate SKS founder and  former chairman Vikram Akula on the SKS board. Akula was made to quit SKS in November 2011.

SKS Microfinance, however, stated that according to its Articles of Association no shareholder had any right to nominate a director.

Meanwhile, SKS today informed stock exchanges that CLSA (Mauritius) Limited had off-loaded over 5.12 million shares of  the MFI through open market on September 19, 2013. Akula had also sold  over 900,000 shares of SKS early this month.

SKS scrip closed on the BSE on Thursday at Rs 129.45,  down 0.50 per cent over the previous day’s close of Rs 130.10.