Edelweiss Financial Services net up 43% in Q3

The fee and commission income stood at Rs 160 crore, a growth of 85%

Edelweiss Financial Services reported a 43% growth in consolidated net profit for the third quarter ended December 31, 2014 at Rs 83 crore driven by growth in fee income and growth in credit.

The fee and commission income stood at Rs 160 crore for third quarter recording a growth of 85% while the total credit book at the end of the third quarter stood at Rs 11,178 crore recording a growth of 38% compared with the same quarter the previous fiscal.

"For us the fee commissions business have done well and secondly our credit book has grown. We are following the diversified financial services model so we have a lot of business and product lines. Now we are getting growth momentum from all of them," said Rashesh Shah, chairman and CEO of the Edelweiss Group.

Edelweiss Financial Services was one of the applicants for new banking licences in the private sector. "The payment bank model is more for transaction processing companies and telecom companies. That is not a part of our business model. Given our business model, universal banking model is closer to what we can do. Small finance banks are more for microfinance companies or smaller NBFCs," said Shah.

The asset quality of the overall credit book continued to remain under control with gross non-performing loans (NPLs) at 1.39% and net NPLs at 0.21% indicating a Provision Coverage Ratio (PCR) on NPLs of 85%.

"Asset quality is expected to remain stable because a lot of credit which we do are largely collateralised," said Shah.