The management of Muthoot Finance Ltd announced through newspaper advertisements on Wednesday that it will be closing 15 of its branches in the state of Kerala with immediate effect. Although the reason for the closure has not been stated, the decision from the management comes at a time when the indefinite protest by an employees’ union in the company entered its 16th day on Wednesday.
The employees union of Muthoot Finance, under the banner of Non-Banking and Private Finance Employees Association (NPFEA) had begun an indefinite protest against the management on August 20, regarding several issues such as a basic hike in salary, lack of proper allowances and denial of proper bonus among other issues.
The 15 branches of the company which will be closed from September 4 are the Kathrikadavu, Panangadu, Kangarappady, Ponnarimangalam branches in Ernakulam district, Ulloor and Peringamala branches of Thiruvananthapuram district, Punalur, Kottarakkara and Bharanikavu branches of Kollam district, Thengana branch in Kottayam, Kumily branch in Idukki, Pathiripala and Sultanpet branches of Palakkad district, Changuvetty and Down Hill branches in the district of Malappuram.
The management announced that no fresh gold loans will be granted at the above mentioned branches from September 4 onwards and that arrangements that have been made for the closure of loans/release of gold ornaments pledged will be individually intimated to the respective customers. “Customers will be given 3 months time to close their loan account and get back their ornaments,” informed the management of Muthoot FInance.
One of the accusations made against the company by protesting employees was that despite earning more than Rs 2,000 crore as profit, the employees were not being given a decent salary. Addressing a press meet on Tuesday, George Alexander, the Managing Director (MD) of the company stated that the company does make an overall profit, but claimed that their business in Kerala has been suffering over the years. “We have more than 600 branches in Kerala, but of our total business, Kerala constituted only 10 percent. This came down to a meagre 4 percent over the last couple of years,” he had said.
Meanwhile, the state Labour Minister TP Ramakrishnan has called for a discussion between both sides on Wednesday. The meeting is expected to take place in the minister’s office in Thiruvananthapuram at 3 pm.