GE Money to scale down its branch network
By Joseph Samson
Nov 25, 2008
Print    Email    RSS   

The economic slowdown has compelled a leading financial services provider, GE Money India to close around 50% of its branches in the coming few months. The firm intends to shut down close to 170 branches spread across the nation.

Earlier the company had decided to increase its branch network to 250 by the year 2011 but due to the ongoing slowdown, which has mainly taken a toll over the country's retail lending business, the bank has decided on scaling down the number. This move will also affect a huge number of employees working these branches.

A senior executive with GE Money also confirmed the move and said that the firm is getting on to review its cost and spending at this time of crisis. Currently the firm has a loan portfolio of around Rs 5,000 crore that consist of residential mortgages and home and personal loans.

Recently many banks and financial institutions have also taken a move to cut down on their costs. Most of them have laid-off employees as a part of cost cutting.

In an email sent to ET, GE India mentioned: "The entire industry in India is currently facing very challenging conditions due to an increasing interest rates and delinquencies. The current market realities have made it necessary for us to reassess our business model. In the immediate term, we are focusing on reducing operating expenditures and improving operating efficiencies, as well as building a more focused business in terms of product offerings and consolidating in cities where we have a competitive advantage and scale."

Companies are resorting to such moves in order to keep their bottom lines intact amid crisis faced by the financial sector.

Earlier GE was considering several finance companies in India and abroad to sell off a majority stake in GE Money. Morgan Stanley was assigned the authority to find a strategic partner for the business. However there were no fruitful results and thereby GE Money was merged with GE Commercial Finance. This merger was a part of the internal restructuring of GE and aimed at the consolidation of operations as well boosting efficiencies of both firms under GE Capital.

GE Capital is one among the four major forays of GE. It has its sub-units named GE Aviation Financial Services, GE Energy Financial Services, GE Money and GE Treasury.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs #6
Choose right repayment plan for home loans
Step up loans: An easy way to own a dream...
What should you do if interest rates are...
Should interest rate only be considered in...

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive