SKS’s troubles do not seem to be coming to an end soon. In addition to increased microfinance sector regulations driven by Andhra Pradesh state politics, the company recently saw their founder and chairman, Vikram Akula, leave the organization. Market rumors suggest that issues with the management team led to Akula’s resignation.
The political interference in the microfinance sector within the state of Andhra Pradesh in India has left the sector reeling in recent quarters. Despite Reserve Bank of India’s (RBI) Malegam Committee Report which offered a much needed breather for the MFI sector, SKS Microfinance, the largest player in India had to significantly increase their provision
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Microfinance is slowly becoming a mainstream financial service category, and with the recent IPO of Mexican MFI, Compartamos, interest in the segment has been growing. SKS Microfinance was launched in 1998 by Vikram Akula, who is now recognized by TIME Magazine as one of the 100 most influential people in the world. In the last