UTI AMC raises concern over ongoing Infosys crisis

Mumbai: UTI Asset Management Company has raised concern over the leadership crisis at Infosys.The country's sixth largest mutual fund, which holds 1.16% in Infosys, said it had sustained trust in Infosys, its founder team and professionals but the recent events have shaken that confi dence.

“We are con scious that the last few years have witnessed hasty compromises that have not provided stable outcomes for the company's governance,“ said UTI Asset Management in a letter to Infosys. The letter was written before Infosys announced the appointment of Nandan Nilekani as non-executive chairman. “We hope current events will allow for fundamental reflection on long term institutional arrangements, and not descend into mere conflict of personalities. That would be a wasted opportunity .“

UTI's letter comes a day after a clutch of leading domestic mutual funds and insurers jointly wrote to Infosys board members seeking Nandan Nilekani's return to the company in a “suitable capacity“.UTI was not part of the joint letter.

UTI, in its letter, sought response from the company to three questions; whether it is committed to a transformation strategy; whether it is prepared to continue investing in rebuilding human capital; whether the institutional arrangements will be clearly defined.