Business News | Edelweiss Financial Services Clocks FY20 Loss at Rs 2,045 Crore

Mumbai (Maharashtra) [India], July 6 (ANI): 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.

Also Read | Stuart Broad Unlikely to Make it to England Playing XI for 1st Test Against West Indies Due to Tactical Reasons: Reports.

"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."

Also Read | Shravan Somwaar Vrat 2020 Wishes: Twitterati Greet First Monday of Sawan Month With HD Photos of Lord Shiva And Messages.

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. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)