Mumbai: Edelweiss Group, the Mumbai-based diversified financial services firm, has shuffled its top deck, the firm announced on Tuesday. The move is in line with the firm’s overall strategy to strengthen its retail footprint for high-growth credit business.
Deepak Mittal, who was previously heading the life insurance business, Edelweiss Tokio Life Insurance, will now be co-heading the credit business of the group, the largest business of the group in revenue terms, along with Ravi Bubna. The credit business of Edelweiss includes structured credit, wholesale and retail mortages, lending to small and medium enterprises and agri lending, and contributes 65% towards the firm’s overall profit.
“He (Mittal) brings valuable experience in building and expanding the retail franchise to the group’s credit business,” the firm announced.
Under Mittal, the life insurance business has grown its footprint from 59 branches to 121 branches in the last three years. During fiscal 2018, the firm clocked a gross premium income of Rs638 crore, up 45% from Rs441 crore during last fiscal.
“Our objective is to have retail credit account for 50% of our total credit business by 2020. Under Deepak and Ravi’s leadership we are confident that the growth momentum will accelerate,” Rashesh Shah, chairman and chief executive at Edelweiss Group said. At present, retail credit comprises 27% of its credit business.
The move comes at a time when most Indian banks are grappling with multiple challenges, including high non-performing assets and financial fraud. Consequently, the non-banking financial companies are fast filling the funding gap created by the banks, and eating into their market share.
Sumit Rai, who had been serving as the chief distribution officer for the life insurance business, has been elevated as the chief executive of Edelweiss Tokio Life. The appointment is subject to approval by the Insurance Regulatory and Development Authority.
The group has also elevated the chief of its asset reconstruction business, Siby Antony, to the post of executive chairman at Edelweiss Asset Reconstruction Company (ARC). His post will be filled by R.K. Bansal, who will take charge as the managing director at the ARC. Bansal in his previous role served as the executive director at IDBI Bank, taking care of its retail lending and recovery verticals.
Meanwhile, Hemant Daga, who was earlier the president and head for global markets, has now been made deputy chief executive officer for the global wealth and asset management business along with Ashish Kehair.
“We encourage and empower lateral growth opportunities, especially for senior leaders who have long demonstrated capability and the values of the group. We now aim to achieve our full potential through an optimal structure that leverages our internal resources and leadership teams,” Shah said.