Edelweiss Fin posts Rs 2,281 crore loss in Q4

MUMBAI: Edelweiss Financial Services has reported a consolidated loss of Rs 2,281 crore for the quarter ended March 2020 as against a profit of Rs 246 crore in the year-ago period. The company said the loss was a result of its conservative stance adopted on impairments.
For the quarter, the group reported total impairment of Rs 2,549 crore, recorded based on revisions in the expected credit loss (ECL) model and impact of Covid-19.The company said it plans to raise Rs 1,500-2,000 crore of fresh equity and improve operational efficiency through the use of technology.
“The last eight quarters have been challenging ones for the financial services industry. A slowing economy was further weakened by the Covid-19 crisis. I am proud of the resilience we have showed in such testing times. I attribute our adaptability as an organisation to our diversified business model. So even when one of our businesses battle sustained headwinds, our other three businesses continued more or less BAU (business as usual). Throughout this year, our liquidity has been adequate, and our capital base more than adequate,” said Edelweiss Financial Services chairman and CEO Rashesh Shah.
Besides raising capital, the company is planning to sell-down loans and collaborate with banks on co-lending, on-lending and securitisation. The conglomerate has a presence in lending, asset reconstruction, wealth management, insurance and broking, among others. The credit business has three arms — ECL Finance, which has reported a bulk of the losses of Rs 1,414 crore, Edelweiss Housing Finance and Edelweiss Retail Finance, which managed to turn in a marginal profit.