Life insurance VNB margin guidance may be optimistic
Analyst questioned the feasibility of achieving 17-18% VNB margin in H2 given H1 was only 7.4%, with ULIP mix high and new surrender regulations effective October 1.
ABCAPITAL / Q2-FY25 / risks
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Material risks this quarter
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NBFC margin compression from product mix shift
NIM declined sequentially due to increasing share of secured loans (74% of portfolio), which carry lower yields. Recovery may take a few quarters.
Regulatory scrutiny on aggressive housing loan growth
Analyst raised concerns about RBI's stance on aggressive lending in housing; management denied any direct communication but acknowledged industry-wide caution.
Provision coverage ratio decline in NBFC
PCR in NBFC declined to 46% (secured segment to ~30%) due to product mix shift, which could leave less buffer if stress emerges.