Broking firm Geojit BNP Paribas reported a net loss of R94.20 crore in Q2 on losses suffered by its subsidiary in the National Spot Exchange (NSEL) issue. Geojit Credits, a 65% owned subsidiary, had an exposure of R131.34 crore to NSEL by way of loans given to clients. The company board has decided to make full provision, in terms of RBI Prudential norms for NBFC. The company recorded a profit of R5.89 crore in Q1 and R41.97 crore in FY13
The Kochi-based company also saw its consolidated revenue declining by 21% to R52.49 crore from R66.21 crore mostly due to the absence of institutional brokerage income. Commenting on the results, managing director CJ George said the company is hopeful of recovering the dues from NSEL.
