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Fullerton India lays off 3,000 employees
By siliconindia
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Saturday, 07 March 2009, 00:40 IST |
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New Delhi: As many as 3,000 employees at NBFC Fullerton India, a Mumbai-based credit company, have been laid off. The number amounts to around 20 percent of the company's total workforce in India. The company, which had 800 branches across the country and employed around 14,000 people, has now reportedly shut down 50 branches across the country owing to the liquidity crunch, reported The Economic Times.
"This is a consolidation exercise, under which branches have been merged and under-performers have been asked to leave," a company spokesman said.
Another comment from the company side was this: "The laid-off people were probationers and in the first year of their jobs. Most of these employees were given six to nine months to develop their skills and were also provided with adequate training. Those who could not come up the learning curve have been asked to leave".
A wholly-owned subsidiary of investment major Temasek Holdings, Fullerton specializes in lending to the mass market which consists of small & micro entrepreneurs, small shops and trading establishments, self employed segment (annual turnover of Rs 2.5 lakh to Rs 1.5 crore) and the lower level of salaried individuals (annual salary of Rs 36000 to Rs 3 lakh). Singapore-based Temasek Holdings has invested $ 300 million in Fullerton India in the last couple of years, the last infusion was made in October last year.
Fullerton India has disbursed close to Rs 5,000 crore since it started operations in 2006 and has an asset book of 
2,500 crore at present. While 70 percent of its lending portfolio constitutes loans to the self-employed segment, the remainder consists of loans to salaried individuals and two-wheeler loans. Most of these loans are unsecured. The company has an exclusive tie-up with Hero Honda and Honda Motorcycles for two-wheeler financing.
2,500 crore at present. While 70 percent of its lending portfolio constitutes loans to the self-employed segment, the remainder consists of loans to salaried individuals and two-wheeler loans. Most of these loans are unsecured. The company has an exclusive tie-up with Hero Honda and Honda Motorcycles for two-wheeler financing.