Muthoot standoff worries NBFCs

‘Public confidence in company has eroded’

The Kerala Non-Banking Finance Companies’ Welfare Association chaired by Thomas George Muthoot has expressed concern at the disruption of business and normal functioning of branches of Muthoot Finance in some parts of the State. Mr. Muthoot has alleged frequent strikes at some branches of the NBFC, manhandling of its staff, and prevention of opening of some of its branches.

Mr. Muthoot and association vice chairman Kurian C. George told the media here on Thursday that vested interests were spreading false information about the finance company. “These strikes and propaganda have greatly eroded the confidence of the customers in the company even as the business sector is facing serious challenges owing to national and international factors,” they said.

‘On keeping off talks’

They denied reports that Muthoot Finance management had wilfully stayed away from the talks convened by the government on Wednesday. The association leaders said the management was not in a position to attend the meeting because of the shutdown in business on the previous day at its corporate office and the branches. A meeting would now be held on Monday.

CITU response

Meanwhile, the Centre of Indian Trade Unions (CITU) issued a press release claiming that the strike was in protest against the violation of the agreement arrived between the management and the trade union in the presence of the Labour Minister and commissioner. “Seven strikes were conducted when the management violated the agreement. The management held talks in the presence of the labour commissioner on all seven occasions and agreed to fix a date for implementation of the conditions, but went back on its words,” it said.

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