Staff retention is emerging as a key challenge at Srei Infrastructure Finance.
The non bank finance company’s CEO Rakesh Kumar Bhutoria has reportedly resigned at a time the Covid pandemic and a cash flow mismatch have affected the business of the company.
Since the lenders took control of the company to recover their dues, the Srei group has suffered staff exits amid salary delays and caps on remuneration, particularly at the top level. According to a PTI report, Bhutoria has resigned as the CEO of Srei Infrastructure Finance and the company is looking for a replacement. Srei declined to comment on the development.
Earlier in April, Srei Equipment Finance had said private equity firms from the US and Singapore were keen to invest in the company.
Srei Infrastructure Finance has reported a consolidated net loss of Rs 971.05 crore for the quarter ended June 2021.
The chief operating officer of Srei Equipment Finance Limited had left in April and the company secretaries of Srei Infrastructure Finance and Srei Equipment Finance had resigned in March and May.
There have been resignations from other departments and it is estimated that around 230-250 employees have resigned since December, 2020.
Srei chairman Hemant Kanoria had said in the company’s annual report that senior employees have taken voluntary pay cuts and relinquished compensation to support other employees to avoid retrenchment.
“We are operating in an environment which is completely adversarial in all respects, but we are confident that we will address the issues of our creditors, customers, employees, shareholders and all stakeholders in an appropriate manner befitting the long history of the company,” said Kanoria in the chairman’s communique.
The company has submitted a scheme with the the NCLT for the payment to creditors. The board of directors of Srei Infrastructure Finance in July had cleared a proposal to raise Rs 2,500 crore from the markets through various means including qualified institutional placement.
Earlier in April, Srei Equipment Finance had said private equity firms from the US and Singapore were keen to invest in the company.
Srei Infrastructure Finance has reported a consolidated net loss of Rs 971.05 crore for the quarter ended June 2021.
