Mumbai: Edelweiss Financial Services Tuesday reported a 17 percent rise in its consolidated net profit at Rs 91 crore for the quarter ended June, on the back of an overall increase in income.
Total revenue rose to Rs 1,168 crore, up 43 percent during the reporting period driven primarily by the growth in its retail lending business.
The asset quality of the overall credit book continued to remain under control with gross NPAs (Non-Performing Assets) at 1.32 percent and net NPAs at 0.39 percent.
Provision coverage ratio including provisions on standard assets stood at 97 percent.
The company's total credit book soared 72 percent to Rs 16,431 crore driven by growth in mortgages including housing finance, loan against property and real estate finance, structured collateralised credit to corporates, distressed assets credit, SME and agri finance, and loan against securities and rural finance.
Company's retail finance book grew 39 percent to Rs 3,116 crore.
Chairman and Chief Executive Rashesh Shah said, "The diversified revenue mix has helped us achieve improvement in our performance on a sustained basis despite volatile environment."
He added, operating environment is gradually improving with comfortable liquidity aided by a rate cut in this quarter. At the same time, credit growth, corporate earnings and investment continue to remain sluggish.
Fund-based income of the firm rose 40 percent to Rs 956 crore, while fee and commission income jumped 54 percent to Rs 163 crore.
The company said its gross premium income from life insurance business grew 44 percent to Rs 32 crore.
Edelweiss ARC, which is the largest player in the Asset Reconstruction Company (ARC) space, scaled up its portfolio to over Rs 20,700 crore at the end of the June quarter.
"We are excited about the ARC opportunity as it helps in releasing productive assets for the nation's economy and reduces burden on commercial banks," Shah said.
