SKS Boss Sacked in Power

Struggle
 What is Microfinance
• Microfinance is providing financial services to the
poor such as loans, savings, money transfer services
and micro insurance.

• Mohammad Yunus , Grameen Bank proposed this

idea of lending.

• Won a Nobel Prize in 2006 for their efforts to create

economic and social development from below
 SKS Microfinance
• SKS Microfinance sacked its CEO Suresh Gurumani.

• He was instrumental in listing the company

• Shares Plunged about 9% in intra-day trading

• His term was due to end on March 31, 2014.

• First IPO by a MFI

 Why Gurumani came into Power?
• Mr. Akula founded SKS Microfinance in 1998

• He demonstrated vision and grit which attracted

investors in the nascent stage.

• He had to spend time for personal court cases

• Company needed a hands-on professional CEO.

 Reasons
• Difference in business strategy

• Personality Clash and Power struggle

• Mr. Gurumani never got along with MR Rao (he is

now the CEO) and CFO Dilli Raj and others in the
management team. 

• SKS board’s U-turn

 Conflict Resolution

• AP High Court barred interim CEO , Mr. Rao from

taking any policy decisions

• Reinstated as Director of the company

 Conclusion
• Created confusion among investors

• Spandana Spoorthy delays IPO listing

• Share, third biggest MFI has postponed the merger

with Asmitha MFI