Leader in the spotlight | Vikram Akula
Akula's immediate challenge is to get an application ready for Vaya Finserv in the next one month
Who: Vikram Akula, chairman, Vaya Finserv Pvt. Ltd.
Why: Akula, once the poster boy of the Indian microfinance industry, has most recently joined Vaya Finserv, an agency that collects deposits and gives loans on behalf of banks in rural areas where banks cannot reach. A non-compete agreement had so far barred him from entering any field of business where SKS Microfinance Ltd is present.
Background: Akula founded SKS Microfinance in 1997. In his new role, he has plans to make Vaya into a small finance bank, guidelines for which were issued by Reserve Bank of India on 27 November. Akula will also soon buy a 26% stake in Vaya, which has 23 branches in six districts of eastern Maharashtra and northern Karnataka.
Experience: Akula began working in rural India two decades ago. He started his development career in 1990 as a community organizer of women’s self-help groups for the Deccan Development Society, a non-profit working in rural Andhra Pradesh. Akula was ousted from SKS Microfinance in November 2011 after a bitter boardroom battle.
Challenge: The immediate challenge for Akula is to get an application ready in the next one month. He will face stiff competition as many companies are seeking permits to set up small banks. Significantly, the criterion for small banks is rigorous. Vaya has to get more credible banks as partners to smoothen its road ahead. It has no Plan B if it misses out on a small bank licence. Time is running out for Vaya for two reasons: to get a banking permit and to expand its presence across India with bigger banking partners.
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