Uncertainty in small-ticket unsecured MSME segment
Management remains cautious on the small-ticket unsecured MSME segment (1.3% of NBFC portfolio) due to macroeconomic uncertainties, with disbursements declining 8% sequentially.
ABCAPITAL / Q1-FY26 / risks
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Aditya Birla Capital · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
medium
Low provision coverage on unsecured SME NPAs
Analyst raised concern that PCR on unsecured SME NPAs is only 35.7%, though management considers it sufficient given 53% coverage under government guarantee scheme.
NIM compression in NBFC due to mix shift
Net interest margin including fees declined to 5.97%, and management expects improvement only as higher-yielding unsecured portfolio grows.