DHFL admin rush to retain people after exodus

MUMBAI: Administrators at Dewan Housing Finance (DHFL) are working on an emergency talent-retention plan, three people with direct knowledge of the mission-critical HR programme told ET, after about 4,000 employees exited the indebted financier since the late-2018 funds crisis in the non-bank lending industry.
People linked to recoveries, particularly of home loans sold in smaller towns and cities, are seen as key to ensuring DHFL’s existence as a going concern, with the hunt currently on to find a new buyer for India’s first financial company put into administration since the creation of the dedicated bad-loan resolution platform three years ago.

“The administrators are working on a plan to retain a few hundred critical people, who may be otherwise on their way out due to uncertainties or resentment,” said an executive involved in the exercise.

The targeted number of employees is in the range of 150-350. Their professional calibre, past appraisal ratings and criticality of operations would be key parameters in finalizing the retention plans. A one-time bonus may also be offered, subject to certain conditions.

DHFL did not reply to ET's email seeking comment.

In October last year, DHFL had an estimated employee base of 8,000-9,000. The headcount has now shrunk to just over 5,000.

“About 500 people left the organisation in the last couple of months, with many employees now working in an atmosphere of uncertainty,” said a source involved in the DHFL resolution exercise.

The company has stopped lending long ago, with its lenders busy stitching together a resolution plan.

The company now has Rs 66,000 crore worth of assets under its management, and half of that is still shown in its loan book.

“Recently, some heads of departments, regional officers and three dozen recovery officers decided to move out. This may have necessitated the move,” said a person who has commercial interests in the company.

The National Company Law Tribunal’s (NCLT) Mumbai chapter admitted DHFL for insolvency resolution on December 2 and appointed R Subramaniakumar as its administrator. The Reserve Bank of India (RBI) superseded the DHFL board last month.

It has recently hired a few retired public sector bankers to man top executive roles.

The RBI has appointed EY India as an advisor to the administrator, and AZB & Partners as legal advisors, ET had reported earlier.