We had no control left over SKS Microfinance: Biksham Gujja

Interview with Chairman, SKS Trust Advisors

After a bitter battle for representation in the SKS Microfinance board, Biksham Gujja, chairman of SKS Trust Advisors Pvt Ltd, the largest shareholder in the company, talks about the new focus for the body, in an e-mail interview with Surajeet Das Gupta. Edited excerpts:

SKS Trust has asked the company to remove it as promoter and have plans to divest its entire stake. Do you plan to exit SKS fully?

We asked to be removed as a promoter because we have had no ability to exercise any control over SKS Microfinance and have been denied even a non-executive director's position on the board. In the complete absence of any influence over company affairs, much less significant influence in any decision-making, we asked to be removed as a promoter, which has since been accepted. This will help the trust focus on its core activities of furthering financial inclusion, while avoiding the onerous responsibilities of complying with various regulatory guidelines as a promoter. As for our stake in SKS Microfinance, it is our usual practice to monitor sector-specific and overall market conditions and buy and sell shares in SKS Microfinance as warranted.

What does this mean for Vikram Akula (the former head of SKS)? There is speculation that the trust wants to set up a microfinance venture as his comeback vehicle.

The SKS Trust is governed by a board of directors. While it is true Vikram Akula founded SKS Trust and was at one time the chairman and driving force of the trust, we are today a diverse board that has a range of expertise. We also take advice from many experts in the sector. Our decisions are ultimately guided by the trust deed, and I am confident we are following that in letter and spirit.

You have expanded the board of the trust. What is the logic? Will Vikram Akula take over as chairman of the trust?

I am and will continue to serve as the chair of the board of SKS Trust. Recently, we added two new members to the board, who have expertise in business and finance. They are H Krishna Kumar, executive director of Fenoplast Ltd, and Prashant Mitta, chief financial officer of World Water Works.

We felt the skills and knowledge of those two would complement the background of the existing two members, P Niroop, a Supreme Court advocate, and myself, with my background as a water management expert and agricultural specialist.

As for Vikram Akula, he moved back to New York. He is working on his second book and giving lectures at local universities.

Does the trust own the SKS brand? Will you contest the company continuing to use the name?

We have rights to our logo and our brand, which is slightly different from the logo and brand of SKS Microfinance.

SKS Microfinance owns the rights to its logo and its brand.