Balakrishnan, who is now the head of the India and BPO businesses, was widely seen as a leading contender to the CEO position when incumbent SD Shibulal's tenure ends in 2015. (Agencies)
Balakrishnan, who joined Infosys in 1991 and later became its chief financial officer, resigned a day after Subrahmanyam Goparaju, senior vice-president and head of Infosys Labs' quit.
This is the eighth high-profile exit in the IT major ever since Narayana Murthy returned at the helm in June 2013 bringing along his son Rohan as Executive Assistant. The development comes at a time when Infosys' shares are trading at a record high.
"V Balakrishnan has conveyed his intention to resign as a member of the board and from the services of the company. The resignation is effective from December 31, 2013," Infosys said in a statement.
Balakrishnan, however, dismissed speculation that he was quitting Infosys because he was unhappy.
Former Infosys Director Mohandas Pai, with whom Balakrishnan is forming a private equity fund, termed his exit as ‘big loss’ for the company.
"That is more an external view because each departure happened for a different reason. You can't link all those and come to a conclusion," Balakrishnan said when asked about top level exits that happened since June.
Asked if his exit had anything to do with Murthy's return, Balakrishnan said the Infosys founder's return was the best thing that happened to the company and denied any discomfort either by his return or Murthy's son Rohan's presence.
NYSE-listed Infosys announced the induction of Kiran Mazumdar-Shaw as an Independent Member of the Board while elevating UB Pravin Rao as a whole-time Director.
Commenting on Balakrishnan's exit, Narayana Murthy said, "Bala has been an early adopter, anchor builder." "It is difficult to manage Infosys without Bala's passion and intellect," he added.
Shibulal, whose tenure as CEO comes to an end in 2015, said, "Bala has played a pivotal role in building finance function. He has been a keen driver of corporate governance."
The top level exit also comes amidst organizational restructuring that company Executive Chairman N R Narayana Murthy is overseeing after returning to revive the sagging fortunes of the company in June.
Murthy, 67, has been making a series of changes at Infosys, including cutting costs over on-site work locations, and shifting focus to winning large outsourcing projects. He may have won analysts support for the restructuring but his top aides have been deserting him.
While Infosys global sales head Basab Pradhan quit in July, the company's global manufacturing head Ashok Vemuri resigned in August to join rival iGate as CEO. Stephen Pratt, who co-founded Infosys consulting, had stepped down last month.
In September, Infosys Head of BPO sales in Australia Kartik Jayaraman and BPO Head Latin America Humberto Andrade had quit the company. Sudhir Chaturvedi, who held the designation of vice-president and head of financial services for Americas at Infosys, quit a month earlier.
Balakrishnan, who is now the head of the India and BPO businesses, was widely seen as a leading contender to the CEO position when incumbent SD Shibulal's tenure ends in 2015.