Adequate Capitalisation, Supported by Multiple Capital raises

The Edelweiss group has demonstrated its ability to raise capital from global investors, across businesses, despite the tough Macro environment. The group has raised more than Rs.3,700 Crores over the past 24 months across the lending, wealth management, and asset management businesses.

<b/>Diversified financial services player, with demonstrated ability to build significant competitive positions across businesses

Edelweiss Group is a diversified financial services player with a presence across various businesses including asset management, Wealth Management, Life Insurance, General Insurance, Asset Reconstruction, alternate assets, broking, investment banking, retail finance, and wholesale finance. This group has attained sizeable scale in many of these businesses over a period of time which is likely to lend greater stability to earnings over time.

Pan-India distribution network

EHFL pan-India network spanned a total of 68 offices in 67 major Indian cities as of December 31, 2021. Their extensive network enables them to acquire more customers for retail businesses where increased profitability and ROE are based upon the increased scale of business. The retail customer base was approximately 22,500 as of March 31, 2021, and was approximately 21,500 as of December 31, 2021.

Access to a range of cost-effective funding sources

The funding requirements are predominantly sourced through credit facilities from banks, NHB, and the issuance of redeemable non-convertible debentures on a private placement basis/through public issuance. They have, over the period of the last few years, accessed funds from multiple classes of credit providers, including nationalized banks, private Indian banks, and mutual funds. Access to low-cost borrowings under the NHB refinance window helps them reduce the cost of borrowings. They have developed stable long-term relationships with the lenders and established a track record of the timely servicing of the debts. Total Borrowings were Rs. 34,813.73 million as of March 31, 2021, and Rs. 28,192.30 million as of December 31, 2021.

Effective Use of Technology, Analytics, and Credit Bureau

They believe that the robust loan management system, analytic ability, and extensive usage of the credit bureau and other allied KYC procedures offer a significant competitive advantage. The systems have the capability of end-to-end customer data capture, computation of income, collateral data capture, and repayment management. The loan approval is controlled by the loan application system. They believe that monthly analytics reports including through-the-door and credit-information tracking are efficient tools for ensuring risk management-controls & compliance.