SKS Microfinance sacks Gurumani

SKS Microfinance Ltd, the Indian microfinance lender backed by George Soros, today said it has promoted deputy chief executive M R Rao as chief executive officer and managing director with immediate effect. Rao replaces Suresh Gurumani, whose termination was approved by the company's board, the microlender said in a regulatory filing.

It didn't give reasons for Gurumani's termination four years before the end of his term, but said Rao will be the company's chief executive and managing director for three years.

SKS Microfinance, India's largest microlender that raised about Rs2,630 crore ($366 million) in an initial public offer in August, said in a notice that it had withdrawn all powers granted to Suresh Gurumani, managing director and chief executive officer, with immediate effect.

The company did not give any reason for terminating Gurumani's appointment; but its shares plunged 6 per cent.

The company said the termination was "pursuant" to the terms of Gurumani's appointment letter. Atul Takle, a spokesman for SKS, declined further comment.

Gurumani started as the chief executive officer on 1 April 2009 for a five-year period, according to the company's initial share sale document. SKS's profit more than tripled in the three months ended 30 June.