Mumbai, Oct. 26: Infosys founder, Mr N. R. Narayana Murthy, who had invested in Hyderabad-based SKS Microfinance earlier this year, tried to distance himself from the beleaguered lender on Tuesday.
In a media statement, Mr Murthy has said that he had no control over the firm’s management.
The statement claimed that Mr Murthy had met SKS CEO, Mr M.R. Rao, on October 13 and Mr Akula joined the meeting through teleconference.
“As part of this teleconference, Mr Murthy advised Mr Akula that it is best for the management and the board to be open, honest and fair in all matters dealing with every stakeholder. Apart from this one conversation, Mr Murthy has not had any interaction with either the management or the directors of SKS Microfinance,” the statement claimed.
Mr Murthy’s personal investment firm, Catam-aran, had picked up a 1.3 per cent stake in SKS Microfinance before the company’s IPO for `28.1 crore.
Also, Catamaran cannot exit this investment in less than two years, under the terms of the agreement.
Meanwhile, the stock of SKS slid further on the bourses on Tuesday, slipping over a per cent to close at `989.35. The company has lost almost one-third of its value from the peak of a month earlier.
A statement issued on Mr Murthy’s behalf explained his interest in microfinance as it freed people from the moneylender.
The statement also said that Catamaran did due diligence in rural Karnataka and Andhra Pradesh which showed that borrowers perceived value in microfinance, “if lending was done openly, fairly and at their door-step.”