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SKS Microfinance's 248 sacked employees secure jobs

Last Updated: Monday, June 25, 2012 - 20:22

New Delhi: SKS Microfinance on Monday said 248 out of the 1,200 of its employees, who were sacked last month due to financial pressures faced by the micro-lender, have secured jobs in an employment fair conducted by it.

"...It (job fair) has secured employment for 248 displaced employees following its collaboration with leading corporates and recruitment consultancies. An additional 255 candidates have been short-listed for various positions," the company said in a statement.

Reeling under a financial crisis, the non-banking finance company had cut its headcount by 1,200 in early May and closed down 78 of its branches in Andhra Pradesh.

Before this, SKS had 3,400 employees across 180 branches in the state.

The company had organised job fairs in Hyderabad and Vijaywada and companies like Coromandel Fertilizers, Genius Consultants, Reliance Life Insurance Company, Smaat Aqua Technologies, Tikona
Digital Networks, TeamLease Services and TMI Networks had participated in it, the statement said.

"The resounding success of the job fairs is on account of the tireless efforts made by our teams in reaching out to leading corporates in this difficult market where jobs have been drying up," said Srinivas Reddy Vudumula, senior executive vice president, SKS Microfinance.

The company had incurred a loss of Rs 1,360 crore in 2011-12 fiscal year and had to write off Rs 1,120 crore because of stringent laws by the state government to regulate micro lending sector.

This followed a spate of suicides of borrowers allegedly due to coercive recovery practices by micro finance institutions' (MFIs') agents.

The state government had come out with AP Microfinance Ordinance in October, 2010, and subsequently made it into an Act. The Act crippled the activities of all MFIs, including SKS.

SKS operates in 18 states in the country, including Andhra Pradesh.


First Published: Monday, June 25, 2012 - 20:22
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