"Suresh Gurumani by way of his letter dated May 27, 2011 has tendered his resignation as a director from the board of directors of the company with immediate effect," SKS said in a filing to the Bombay Stock Exchange.

Vikram Akula-founded SKS Microfinance had removed Gurumani from the post of Chief Executive Officer of the company in October 2010, four years before his term was scheduled to end as per contract.

Although the company did not give any reason for the termination of contract of Gurumani, it had named M R Rao as his successor for the post of CEO.

Gurumani had lead SKS at the time of its Rs 1,653 crore IPO in July last year, marking the first ever IPO by a micro finance company in the country. He had a five-year contract from April 1, 2009, due to expire on March 31, 2014.

Even as SKS did not give any reason for the removal of then CEO, it allayed reports that there was personality clash between Gurumani and Akula.

The business model of SKS includes giving small loans to poor people at rates much higher than regular banks.

Gurumani was earlier director at consumer banking at Barclays. Following his appointment, SKS founder Vikram Akula had moved to the role of non-executive chairman.SKS Microfinance, which has been facing problems on account of a state law in Andhra Pradesh, reported a net loss of Rs 70 crore in the January-March quarter of 2010-11 fiscal.

For the full year ended March 2011 SKS posted a 36 per cent decline in net profit to Rs 111.63 crore, from Rs 173.95 crore in the previous fiscal.