SKS Micro rallies on cost-cutting steps, cabinet nod for MFI bill

Reduced headcount by 1,200 employees and close down 78 branches in Andhra Pradesh

SKS Microfinance has rallied 19% to Rs 106 after India's largest micro-lender announced its decision to reduce headcount by 1,200 employees and close down 78 branches in Andhra Pradesh. The company presently employs 3,400 employees across 180 branches in Andhra Pradesh.

“Closing down branches and reducing headcount are extremely painful decisions for us, but these have become urgent in view of the present financial situation,” said Mr M R Rao, Managing Director and CEO, Limited

On account of the situation prevailing in for the microfinance sector in the past 18 months, the company has incurred a loss of Rs 1,360 crore during the year ending March 2012, it added.

Meanwhile, the Cabinet on Thursday approved a Microfinance (MFI) bill with proposals to set up a development council and appointing the Reserve Bank of India (RBI) as regulator, the report suggests.

As many as a combined 859,803 shares have already changed hands on the counter in opening trades, against an average sub 350,000 shares that were traded daily in past two weeks on both the exchanges.

image
Business Standard
177 22
Business Standard

SKS Micro rallies on cost-cutting steps, cabinet nod for MFI bill

Reduced headcount by 1,200 employees and close down 78 branches in Andhra Pradesh

SI Reporter  |  Mumbai 

SKS Microfinance has rallied 19% to Rs 106 after India's largest micro-lender announced its decision to reduce headcount by 1,200 employees and close down 78 branches in Andhra Pradesh. The company presently employs 3,400 employees across 180 branches in Andhra Pradesh.

“Closing down branches and reducing headcount are extremely painful decisions for us, but these have become urgent in view of the present financial situation,” said Mr M R Rao, Managing Director and CEO, Limited

On account of the situation prevailing in for the microfinance sector in the past 18 months, the company has incurred a loss of Rs 1,360 crore during the year ending March 2012, it added.

Meanwhile, the Cabinet on Thursday approved a Microfinance (MFI) bill with proposals to set up a development council and appointing the Reserve Bank of India (RBI) as regulator, the report suggests.

As many as a combined 859,803 shares have already changed hands on the counter in opening trades, against an average sub 350,000 shares that were traded daily in past two weeks on both the exchanges.

RECOMMENDED FOR YOU

SKS Micro rallies on cost-cutting steps, cabinet nod for MFI bill

Reduced headcount by 1,200 employees and close down 78 branches in Andhra Pradesh

SKS Microfinance has rallied 19% to Rs 106 after India's largest micro-lender announced its decision to reduce headcount by 1,200 employees and close down 78 branches in Andhra Pradesh. The company presently employs 3,400 employees across 180 branches in Andhra Pradesh.

SKS Microfinance has rallied 19% to Rs 106 after India's largest micro-lender announced its decision to reduce headcount by 1,200 employees and close down 78 branches in Andhra Pradesh. The company presently employs 3,400 employees across 180 branches in Andhra Pradesh.

“Closing down branches and reducing headcount are extremely painful decisions for us, but these have become urgent in view of the present financial situation,” said Mr M R Rao, Managing Director and CEO, Limited

On account of the situation prevailing in for the microfinance sector in the past 18 months, the company has incurred a loss of Rs 1,360 crore during the year ending March 2012, it added.

Meanwhile, the Cabinet on Thursday approved a Microfinance (MFI) bill with proposals to set up a development council and appointing the Reserve Bank of India (RBI) as regulator, the report suggests.

As many as a combined 859,803 shares have already changed hands on the counter in opening trades, against an average sub 350,000 shares that were traded daily in past two weeks on both the exchanges.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard