STOCK MARKET BSE NSE

COVID-19 crisis: Edelweiss Financial Services clocks FY20 loss at Rs 2,045 crore

The group's total income in FY20 dropped to Rs 9,603 crore from Rs 11,161 crore in FY19.

Published: 06th July 2020 12:17 PM  |   Last Updated: 06th July 2020 12:17 PM   |  A+A-

Edelweiss Financial Services chairman Rashesh Shah

Edelweiss Financial Services chairman Rashesh Shah (Photo| Twitter/ @rasheshshah)

By ANI

MUMBAI: Diversified group Edelweiss Financial Services Ltd has reported a net loss of Rs 2,045 crore due to increase in provisions for impairment on loans and financial instruments.

Total impairment of Rs 2,549 crore was recorded in Q4 FY20 based on revisions in the expected credit loss model and impact of COVID-19, it said. The group's total income in FY20 dropped to Rs 9,603 crore from Rs 11,161 crore in FY19.

"The last eight quarters have been challenging ones for the financial services industry. A slowing economy was further weakened by the COVID-19 crisis," said Chairman and CEO Rashesh Shah.

"I am proud of the resilience we have shown in such testing times. I attribute our adaptability as an organisation to our diversified business model. So even when one of our businesses battles sustained headwinds, our other three businesses continued more or less business-as-usual (BAU). Throughout this year, our liquidity has been adequate and our capital base more than adequate."

Shah said the group took three conscious decisions in Q4: markdown and sell-down of corporate asset book, accelerating to capital light model in retail credit and the proposed equity raise at Edelweiss and in wealth and asset management business.

"These measures will further strengthen both our balance sheet and our dominant franchises. As the economy recovers over the next few quarters, our businesses will be well-poised to grow strongly," he said in a statement.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp