Alternative asset management will grow faster compared to mutual funds and portfolio management services, said Rashesh Shah, chairman and CEO, Edelweiss Financial.
In an interview with CNBC-TV18, sharing details of the company's fourth-quarter earnings, Shah said it has been a moderate growth year but given the challenging environment, the growth still stands good.
“If you see FY19 versus FY18, our balance sheet is flat but we have still reported 18 percent growth in profit after tax,” he said.
The credit business, asset management and wealth management have done well, he said. "Retail credit has seen good demand from SMEs because people who have adapted to GST require more working capital."
Shah said the company has been very pro-active in risk management. “Most of our loans are collateralised and we have been very proactive in either liquidity collateral or doing any other remedial action to protect risks because that is the only way to run a collateralised business,” he said. “Half the book is wholesale, which has collateralised credit and other half is retail, which includes home loan, SME loans, loan against shares, margin funding. All that has been doing well."
On average, the collateral coverage is 1.75-2.25 times, he said.