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17-Aug-2020

IndoStar Capital Finance

Expects around 20% to 25% reduction in the cost for FY2021


'IndoStar Capital Finance conducted a conference call on 13 August 2020 to discuss financial results for the quarter ended June 2020. Ramachandran Sridhar, Executive Vice Chairman & CEO of the company addressed the call:

Highlights:

Brookfield has invested about Rs 1225 crore. They now hold 57% on the fully diluted equity shares of the company.

The company is running down the corporate lending business, which had been the mainstay business of IndoStar, and the company is going to focus on the retail loan segment. The retail loan mix consists of 71% and 29% is corporate lending business.

The company has also taken accelerated provisions and aggressive write-offs during Q4 including the write-offs prescribed by the Reserve Bank of India, 10% on cases where the company has extended moratorium. And the company has taken Rs 100 crore of COVID provision.

These actions have ring-fenced the balance sheet against all possible risks associated with COVID in the com...



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