ABCAPITAL / Q2-FY25 / claim-ledger

Audit the questions that mattered.

Aditya Birla Capital · Analyst questions, management answers, and the quality of the response where the ledger is available.

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PositiveQ2-FY25 · 2024-10-22Back to quarter ↗

Questions audited

Answered directly

82%

Numeric claims

Consistency

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Question ledger

What was answered, and how?

Puneet Balani · Macquarie Capital

direct

Why has PCR declined and will it continue?

So Puneet, if you look at our secured book has grown from 67%-74%. So now, of the total loan book, 74% of our loans are secured by real estate collateral or listed security. So that is the reason why the PCR has dropped marginally, because the change in the product mix.

Avinash Singh · Emkay Global

direct

Why divergent PCR movements between NBFC and HFC secured books?

The reason in NBFC, what happens is, what is the security? We have EAD exposure at default into LGD loss given default, which is based over the last 5, 10 years of our recovery rates on the security. So it depends on what is the security cover I have...

Avinash Singh · Emkay Global

partial

How will life insurance VNB margin rise from 7% to 17%?

All the new products that are getting launched in the second half of the year are non-ULIP products. Protection, we have launched a suite of two new products... Typically, the margins which accrue from our agency business is significantly higher...

Subramanian Iyer · Morgan Stanley

declined

What is total ECL for NBFC for both quarters?

So we can share that. I don't have it readily available. I can share that offline.

Mayank Mistry · JM Financial

direct

What is AUM growth guidance for housing business?

The focus is on building the book in the next 18-24 months. That has been the guidance that we've been giving... doubling the book in the next 18-24 months, and that kind of stays on course.

Chintan Shah · ICICI Securities

direct

How much capital allocated to NBFC and HFC?

Out of the total, we raised about INR 3,000 crores of capital in June 2023... So far, we have invested close to about INR 2,100 crores in the NBFC and about INR 600 crores in the housing finance business.

Chintan Shah · ICICI Securities

direct

How much capital went into digital arm?

As we had mentioned during March, till March, we had spent about INR 100 crores. And we would have additionally spent about INR 50-75 crore during the year in the digital proposition.

Chintan Shah · ICICI Securities

direct

Is unsecured lending now entirely internal sourcing?

We have tightened underwritings, whatever cohorts, which was showing any performance which was not in line... majority of our loans are coming through our direct acquisition channel...

Chintan Shah · ICICI Securities

direct

Under which segments are the stressed HFC accounts?

The quantum is very minimal. We're talking about 8-9 crores in overall... it is spread across all the three segments, but the quantum itself is very, very small.

Kishore Agrawal · Bajaj Finserv AMC

partial

Why are NBFC margins declining and where will they settle?

Margins, if you look at, that's on the backdrop of change in the product mix. Our secured business going up from 67% to 74%... It might take a quarter or two because I think the shift will have to because the product mix is still in terms of also looking at the environment.

Kishore Agrawal · Bajaj Finserv AMC

direct

Can asset quality improvement continue in H2?

Yes, it will be range-bound. Our guidance has been that the credit cost will be around 1.5%. We have come down to 1.25%. We expect it to be in the same range, and we don't see this going up.