In the nonbanking financing (NBFC) segment, ABCL has gradually increased the share of secured loans to nearly 46% in FY25 from 44% in FY22. A higher secured book reduces the lending risk and credit cost. The size of the secured loan book increased by 33% annually during the period to ₹57,992 crore. The NBFC division’s total assets under management (AUM) rose by 32% annually to ₹1,26,351 crore between FY22 and FY24. It is expected to grow by over 25% for FY26 helped by rising traction in the company’s digital platform.
Given the company’s cautious stance, the AUM of the personal and consumer (P&C) segment of the NBFC division fell by 10.9% year-on-year to ₹15,532 crore. Its share in the total AUM fell to 12% at the end of March 2025 from 19% two years ago. This impacted the NBFC yields, which fell by 60 basis points year-on-year to 13.1% in FY25 since P&C has a higher yield profile. In the coming quarters, the company expects to improve the share of P&C in total AUM to 20%, which should support the yields and net interest margin (NIM).The asset management company (AMC) division of the company reported strong double-digit growth in revenue and profit before tax (PBT) in FY25. Also, the life and health insurance divisions reported double-digit premium growth. The company’s market share in the individual first year life premium improved to 4.8% from 4.2% a year ago while the share of the health insurance expanded to 12.6% from 11.2% by similar comparison. “We see ABCAP logging steady growth with improving profitability across its key businesses in FY26,” noted Emkay Global in a report.
