SKS Microfinance would be shutting 78 branches in Andhra Pradesh. This has been disclosed in its stock exchange filing, and the move is expected to impact about 1200 of its employees. The company employs over 3400 across 180 branches in AP. The move is driven by business situation in Andhra, and the company may be willing to take the impacted employees back as and when the situation improves.
As stated by M R Rao, MD & CEO, SKS Microfinance Limited – “Closing down branches and reducing headcount are extremely painful decisions for us, but these have become urgent in view of the present financial situation,”. SKS Microfinance has clarified in the statement that it is not facing any liquidity or solvency issues.