Mumbai: Union minister of state for corporate affairs, Salman Khurshid has said that the government would resolve the 'technical issues' pertaining to the SKS Microfinance case, reports PTI.
"The Andhra Pradesh High Court has given its decision on the matter (sacking of the company's CEO Suresh Gurumani). When courts take a decision, we obviously have to comply with it," Mr Khurshid told journalists on the sidelines of an event in Mumbai on Friday. "Courts have taken a view on this...it will obviously reflect in what the ministry has to do going forward." The minister said that there are certain technical issues and "we will resolve them."
On 4th October, SKS Microfinance sacked Mr Gurumani from the post of CEO and managing director, a few months after it had successfully raised about Rs1,500 crore through a share sale. Founder and chairman Vikram Akula had said that Mr Gurumani was removed because of "inter-personal" issues.
However, Mr Gurumani petitioned the Andhra Pradesh High Court, which allowed him to continue as a director. The court did not stay the company's decision to terminate his services as CEO and managing director.
Asked about weak corporate governance processes in the micro-finance sector, Mr Khurshid said, "Corporate governance is not something that should be limited to companies." The minister said that as far as corporate governance was concerned, it applies across the board. "It has to go to other platforms as well, which come under this broad area. Of course, the levels of compliance and expectation will have to be different," he said.
"Where public money is involved it is one level and where public money is not involved, it is another level. Similarly, corporate governance parameters are different for both private companies and limited liability partnerships. But there has to be basic standards for everyone. There is a need for compliance with rules and regulations along with transparency for efficiency and perfection," Mr Khurshid said.
Hyderabad: SKS Microfinance has reported a profit after tax of Rs80.54 crore in the second quarter ended 30 September 2010, a jump of 116% from the Rs37.35 crore in the corresponding period last year, reports PTI.
Revenues of the country's largest microfinance institution increased by 76% to Rs366 crore from Rs207 crore in the period a year ago, the company said in a statement, PTI reports. The company had reported a net profit of Rs67 crore in the first quarter of the current fiscal year.
Incremental loan disbursements in the second quarter increased by 61% y-o-y to Rs3,171 crore and the loan portfolio for the half-year period was up by 69% to Rs5,454 crore, the company said. Earnings per share improved to Rs11.74 at the end of September 2010 compared to Rs7.77 in the corresponding period last year.
SKS Microfinance's main business is to provide loans to poor women in rural communities that will enable them to set up small businesses to earn income. The company recently raised more than Rs1,600 crore through a public offer of 168 lakh shares at Rs985 a share. On Friday, the SKS share price closed at Rs1,053 on the Bombay Stock Exchange, about 4.78% down on the day.
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