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ICRA

Central Bank of India has entered into a strategic Co-Lending Partnership with M/s. ECL Finance Limited to offer MSME Loans at competitive rates, subject to compliance with the applicable law(s) including the applicable guidelines issued by Reserve Bank of India (RBI). The participation by both the entities in this Co-Lending arrangement will result in greater expansion of portfolio by Central Bank of India and M/s. ECL Finance Limited.

Central Bank of India enters into Co-Lending partnership with ECL Finance Ltd

Edelweiss Financial Services Limited is going to raise Rs 300 crore from investors by issuing secured redeemable Non-Convertible Debentures (NCDs), which include the base issue of Rs 150 crore and a greenshoe option (oversubscription option) of Rs 150 crore.

Edelweiss Financial Services to raise Rs 300 crore from NCDs

The Reserve Bank of India (RBI) on May 29 announced supervisory actions against ECL Finance Limited and Edelweiss Asset Reconstruction Company Limited citing material supervisory concerns. The Reserve Bank has directed ECL Finance Ltd (ECL) to cease and desist, with immediate effect, from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/ or closure of accounts in its normal course of business. Announcing the action on Edelweiss group entities, the RBI said the action is based on material concerns observed during the course of supervisory examinations, essentially arising out of conduct of the group entities acting in concert. This was done by entering into a series of structured transactions for evergreening stressed exposures of ECL, using the platform of EARCL and connected AIFs, thereby circumventing applicable regulations, the RBI said.

RBI imposes business restrictions on ECL Finance, Edelweiss ARC citing material concerns

This, asset quality of the wholesale book remains vulnerable due to its exposure to the real estate segment and stressed mid-tier borrowers in structured credit.

Profitability has been lower than those of other large, financial sector groups. It was significantly impacted in fiscals 2021 and 2020, on account of higher credit cost.

The issuer has made timely interest payment 

Rashesh Shah, Chairman

Deepak Mittal, Vice Chairman

In the event of a shortfall in meeting the promised PTC payouts during any month, the trustee will utilize the CC to meet the shortfall if the over-collateralization

The Edelweiss group has demonstrated its ability to raise capital from global investors across businesses, despite the tough macro environment. This has helped maintain the capital position, despite elevated credit cost and absorb asset-side risk.

The Edelweiss group is a diversified financial services player, present in five verticals i.e., credit, insurance, asset management, asset reconstruction and wealth management. The group has attained sizeable scale in many of these businesses over a period, which is likely to lend greater stability to earnings over time.

Security Name: 11.25% ECL Finance Limited 03 May 2025

ISIN:

INE804I08643

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A Stable

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A +

ICRA

Subordinated Tier 2

Unsecured

ISSUER

ECL Finance Limited

Recent News

Central Bank of India enters into Co-Lending partnership with ECL Finance Ltd

Edelweiss Financial Services to raise Rs 300 crore from NCDs

RBI imposes business restrictions on ECL Finance, Edelweiss ARC citing material concerns

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