Microfinance Focus, August 25, 2011: India’s largest and only listed microfinance institution SKS microfinance fell by over 58 percent on Bombay Stock Exchange in the last one month period. The company’s stocks have reached their lower circuit limit of 5 percent and were last trading at Rs. 229.30

SKS has been losing on the bourses for the last nine consecutive days of trading. From a monthly high of Rs. 544 it has dropped to Rs. 229.30

The company’s shares have been dropping since the reports about a possible step down of Vikram Akula as its executive chairman have surfaced. It was reported that some board members of SKS have suggested that Akula should guide the company as a non-executive or part-time chairman since it is difficult for him to devote time as a full-time executive.

One of its independent directors, Pramod Bhasin has also resigned from the Board of Directors of the Company this month.

SKS Microfinance lunched a successful IPO in July last year with its shares oversubscribed by nearly 11 percent. The company’s performance however met a severe blow in the wake of Microfinance Ordinance issued by the Andhra Pradesh state government.

SKS posted a loss of Rs 219 crore in Q1 this year as against a net profit of Rs 66 crore in the same quarter last year.