There is one question which I have and that has been a sticking point as far as Edelweiss is concerned and that is their assets in the subsidiary. Copy Pasting from the subsidiary ECL Finance Limited:
This is nearly 2400 cr + 570 cr is assets (more than 50% of Edelweiss’s net worth). To me most of these assets are in some of the most stressed sectors and the revival of such sectors is anybody’s guess. Some of the questions that I have to folks who are invested
a) What are your views on the quality and volume of these assets?
b) One of the reasons for having these assets is Edelweiss’s ARC business. Do you think that having both Asset and Liability within the same company but with different suubsidiaries is a sensible thing to do?
c) A decent portion of loan is between 15% to 20% interest rate. What do you think about the viability of a stressed asset generating return in excess of this?