Ceat Financial to exit from corporate lending

Simultaneously, CFSL has undertaken several initiatives for reducing its cost of funds and operations and recast its balance sheet. It has decided to reduce its fixed deposit base to Rs 100 crore in a phased manner over the next 12 months by paying off all deposits falling due. Simultaneously, CFSL has forthwith stopped accepting fresh deposits and renewal of existing ones to facilitate the reduction.

On the operations front, the company has decided to centralise its fixed deposit processing activities in Mumbai, which will reduce operating costs, streamline operations and provide customers and improve single point services. The company is also taking a fresh look at its countrywide operations to spot opportunities and rationalise costs further by operating with a leaner structure. Wherever required people will be retained and redeployed to achieve the objective.

CFSL has also initiated rigorous programme for recovery of its dues. A special cell has been formed under the direct supervision of the president, which will closely monitor and take quick action on assets recovery through appointment of a special task force.