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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The financial services group needs to cut debt sooner rather than later, and selling a unit is the best option on the table.
Editor's note: Edelweiss Financial Services has put its mutual fund business on sale to help the group pare its pile of debt, according to three people with direct knowledge of the matter, who asked not to be named. “It is an ongoing process. There are a lot of people interested in the mutual fund business,” says one of the three people. The interested parties for the business include Edelweiss Asset Management CEO Radhika Gupta (backed by Cholamandalam Investment and Finance), IndusInd Bank and Hero FinCorp, according to all three people. For the Edelweiss group, which is trying to reduce its debt, the two businesses that could have been sold off were the insurance and the mutual fund units. “We had approached them to buy out the insurance business for one of our clients. They declined stating that it won’t garner much interest, as the insurance market is very saturated, limiting the valuation,” says a boutique investment manager, asking not to be named. The fact that IDFC’s mutual fund business gathered 13 bidders last year, including some private equity firms, seems to have …
The financial services group needs to cut debt sooner rather than later, and selling a unit is the best option on the table.
Editor's note: Edelweiss Financial Services has put its mutual fund business on sale to help the group pare its pile of debt, according to three people with direct knowledge of the matter, who asked not to be named. “It is an ongoing process. There are a lot of people interested in the mutual fund business,” says one of the three people. The interested parties for the business include Edelweiss Asset Management CEO Radhika Gupta (backed by Cholamandalam Investment and Finance), IndusInd Bank and Hero FinCorp, according to all three people. For the Edelweiss group, which is trying to reduce its debt, the two businesses that could have been sold off were the insurance and the mutual fund units. “We had approached them to buy out the insurance business for one of our clients. They declined stating that it won’t garner much interest, as the insurance market is very saturated, limiting the valuation,” says a boutique investment manager, asking not to be named. The fact that IDFC’s mutual fund business gathered 13 bidders last year, including some private equity firms, seems to have …
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
The increasing convergence of sales and service functions, with consequent non-stop pressure to meet targets, has seen employees jump ship in droves. This has the potential to adversely impact the financial institutions’ health.
The bank, following its March 2020 bailout, may have gone overboard in its quest for safety. That may soon change as it looks to acquire a microfinance business with the promise of high returns.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
The increasing convergence of sales and service functions, with consequent non-stop pressure to meet targets, has seen employees jump ship in droves. This has the potential to adversely impact the financial institutions’ health.
The bank, following its March 2020 bailout, may have gone overboard in its quest for safety. That may soon change as it looks to acquire a microfinance business with the promise of high returns.
