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Chandralekha Desai made post

Why has the Edelweiss group booked such a huge loss for the quarter ending on March 2020?

Answer
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Mitali Bhutta answered.
4 weeks ago


It looks like the COVID-19 has taken its toll on most of the financials in India. The Edelweiss group booked a massive loss of Rs.2245 crore in the Mar-20 quarter due to high upfront provisioning for COVID-19. There were also losses across the credit lending and the asset reconstruction verticals. The total losses provided in Mar-20 quarter were Rs.2549 crore.

The massive loss provision booked in the quarter includes Rs.900 crore in additional provisioning for COVID-19. Even the full year income of Edelweiss fell sharply from Rs.11,161 crore last year to Rs.9053 crore for FY20 due to the overall business slowdown. Rashesh Shah has clarified that these are only provisions and not actual losses booked.