<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published March 7, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Fullerton India in consolidation mode
Micro loan firm says hiring freeze is lifted, business is picking up
By SIOW LI SEN
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TEMASEK Holdings' micro loan business in India is consolidating as the global downturn takes its toll.
After opening branches at a breakneck speed in the last two years, Temasek's wholly-owned Fullerton India Credit Company implemented a hiring freeze last October when the liquidity crunch hit.
The Economic Times of India on Thursday reported that Fullerton India had laid off 3,000 workers and shut down 50 branches due to the liquidity crunch.
Employee count fell some 15-20 per cent to over 10,000 from 14,000 through natural attrition, said Ravi Shankar, Fullerton India executive vice-president, marketing and customer fulfilment.
The company which gives small loans to the mass market in India, a group shunned by banks, has over 825 branches in some 400 towns and cities.
'Employee count has constantly varied due to natural attrition of employees seeking different opportunities,' said Mr Shankar.
The company decided on a recruitment freeze during the liquidity crisis since October 2008, he said.
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</TD></TR></TBODY></TABLE>But signs of improvement have been seen since, he said. 'The slowdown has had an impact in the market, thought not what it was six months back,' he said.
Loans disbursement came down 30 per cent but in January certain segments where Fullerton India operates, such as sale of two wheelers, showed growth.
Auto sales in February were up 20 per cent from a year ago, said Mr Shankar.
The company began recruiting at end-2008 and over the last 90 days it has hired over 900 employees, with total strength now at over 11,000 employees.
'We're going to remain at this level and consolidate,' he said. Mr Shankar said it hopes to sell 20-25 billion rupees (S$600-750 million) worth of loans this year.
Fullerton India has disbursed over 50 billion rupees to the mass market in India over the last two and a half years of commercial operations. The total loan assets of the company are still at over 30 billion rupees.
Some 70 per cent of its lending portfolio comprises loans to the self-employed segment with the remainder to salaried individuals and two-wheeler loans.
The company has an exclusive tie-up with Hero Honda and Honda Motorcycles for two-wheeler financing.
Other micro loan companies such as CitiFinancial and GE Money have also scaled down operations significantly in the past six months, The Economic Times said.
CitiFinancial has brought down its network from 450 branches to 170 and GE Money has reduced its network from 180 branches to less than 80 branches.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Fullerton India in consolidation mode
Micro loan firm says hiring freeze is lifted, business is picking up
By SIOW LI SEN
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
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After opening branches at a breakneck speed in the last two years, Temasek's wholly-owned Fullerton India Credit Company implemented a hiring freeze last October when the liquidity crunch hit.
The Economic Times of India on Thursday reported that Fullerton India had laid off 3,000 workers and shut down 50 branches due to the liquidity crunch.
Employee count fell some 15-20 per cent to over 10,000 from 14,000 through natural attrition, said Ravi Shankar, Fullerton India executive vice-president, marketing and customer fulfilment.
The company which gives small loans to the mass market in India, a group shunned by banks, has over 825 branches in some 400 towns and cities.
'Employee count has constantly varied due to natural attrition of employees seeking different opportunities,' said Mr Shankar.
The company decided on a recruitment freeze during the liquidity crisis since October 2008, he said.
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Loans disbursement came down 30 per cent but in January certain segments where Fullerton India operates, such as sale of two wheelers, showed growth.
Auto sales in February were up 20 per cent from a year ago, said Mr Shankar.
The company began recruiting at end-2008 and over the last 90 days it has hired over 900 employees, with total strength now at over 11,000 employees.
'We're going to remain at this level and consolidate,' he said. Mr Shankar said it hopes to sell 20-25 billion rupees (S$600-750 million) worth of loans this year.
Fullerton India has disbursed over 50 billion rupees to the mass market in India over the last two and a half years of commercial operations. The total loan assets of the company are still at over 30 billion rupees.
Some 70 per cent of its lending portfolio comprises loans to the self-employed segment with the remainder to salaried individuals and two-wheeler loans.
The company has an exclusive tie-up with Hero Honda and Honda Motorcycles for two-wheeler financing.
Other micro loan companies such as CitiFinancial and GE Money have also scaled down operations significantly in the past six months, The Economic Times said.
CitiFinancial has brought down its network from 450 branches to 170 and GE Money has reduced its network from 180 branches to less than 80 branches.
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