Hi. Thanks for the opportunity. Just one question, I mean, around your business projections. Given that, I mean, yes, the rating upgrades will probably follow. But yet, I mean, if we look now, we are in a situation where we have, I mean, AAA rated, strong parent impact, so many, I mean, large NBFCs and well capitalized, many of them have excess capital as well. In this kind of a market competitive scenario, how do you see I mean because this is very, very different than, I will say, say, 8, 10 years back to your Indiabulls scenario, again, that time you were AAA, but there were not so many AAA. Today, you have a large list of AAA, strong and large NBFCs. In that scenario, how do you see this competitive scenario playing out? Because your projections are not just growth, it is a massive increase or improvement in profitabili ty. So that is my question one. Second, if I look again at the projections, I mean, the kind of the ROA, ROE numbers that have been talked and if I look at the cost to AUM or cost to income, that is something, I mean, not many NBFCs even at that scale have done. I mean there are very few and far. So what gives you sort of a confidence about these projections that, okay, this time you are going to achieve these numbers? And on that front, I mean, I guess there is some kind of error, I guess, in your FY '30 ROA projection because that's suddenly going to 8 -odd percent. I think there something is odd there. Thanks.
Questions across 8 calls
Avinash Singh
Emkay Global Financial Services
Sammaan Capital Limited
Piramal Finance Limited
Yeah, hi. Good evening. Thanks for the opportunity. A couple of questions. The first one continuing on the capital part. So if we were to see that, you know, the balance sheet leverage, it is still pretty much on the lower side. So from the net worth that is on the balance sheet, what all sort of adjustment on regulatory capital? Because it seems a pretty big number. I mean, is it kind of the deferred tax asset, that up -fronted income? So, that's a pretty large number. So the balance sheet leverage is, I mean, asset to equity is not yet four times and the capital adequacy is relatively lower. So that's one, and particularly considering the fact that on the risk -weight side also you will have a mortgage side that will not be that risk, kind of a risk-weight intensive. So that's one. The second one is on this thing, the tax. Now given that, you know, the tax, accumulated tax losses are close to INR25,000 odd crores, what is the kind of a timeline by which you need to kind of consume it? So just to get an idea that okay, if that entire piece is going to provide you, you know, the tax relief. Thanks.
Okay, clear. And just one again on this. So, in a normal course of business as now your profits start to go up, so how will this carry-forward losses will move? It will keep creating DTA? I mean will this DTA goes on rising or kind of it will be offsetting? So how will the DTA be kind of typically assuming your 2.5% ROA trajectory?
HDB Financial Services Limited
Hi, thanks. So a couple of questions. The first one on your comment around margins, that it's around 8.1% towards the highe r end of your sort of guidance a nd you are preferring margin. Does that m ean over the coming quarters, I mean this sort of margin will lead to a subpar or relatively lower growth than what you would have otherwise kind of thought like 18% - 20% range. Will this focus on margin leading to sort of a – margin-growth conundrum, you being on the lower side in growth? That's one. And second, if sort of we were to look maybe for next financial year, given where the sort of your margins are probably topping already of the guided range, what sort of the improvement in credit cost depending upon the current rates you're seeing , that will help the R oA. I mean, because on the margin side, there's very little lever left. So what kind of a credit cost improvement do you expect in the next year? Thanks.
Yes. Thank you.
SBI Life Insurance Company Limited
Very impressive show on margin. And I mean this again demonstrates your ability to tweak the product mix and your cost effectiveness that, of course, helps deliver this margin. My question will more be focusing on growth. The first one is that now, of course, this year, your conscious choice to leave a space or vacate space due to hyper competition in group business has also kind of led to headline numbers being a bit muted. Now with this base and also whatever is happening now the base turning favorable. But on the retail side, of course, thrust on non-banca and also banca base turning reasonable, but the noise remains around banca. So in all , if you were to connect the dots, how do sort of you see growth next year because that's one of the key metrics? And second, I mean if I see, of course, I mean, your focus on non-banca is delivering numbers, agency has improved. But two things I noticed about agency. If I look at just Q4 in isolation, the growth in agency just like a very, very muted 4%. So the agency channel th at was growing at 28% in 9 months, the full year number has come to 21%. So Q4, what happened to this agency growth? And in relation to that, agency has seen a large number of de letions, is there some sort of a strategic choice that you are kind of removing the inactive agents or so. There has been a large amount of deletion, so there has not been a net addition this year in agency. So these are my 2 questions. Growth outlook, and second on agency.
Mahindra & Mahindra Financial Services Limited
If I mean, one were to look at your FY '25 numbers versus guidance, I mean, the ROA miss has been largely driven by, as you acknowledge, the NIM part and the other part also is the opex standing higher. Now I mean, looking ahead, I mean, and also growth a bit softer. If you were to still chase growth or try to do growth better than what you have done in the last 4 years or at least in line. And in that -- and also try to diversify, particularly those diversifications like some initiatives like mortgage and all will come at some opex, whether for a tech branch or people infrastructure. So, in that context, even if there is going to be some bit of improvement towards NIM, but there also the mortgage kind of a thing could put some pressure. But how do you see opex going forward? I mean my question is that, okay, not immediate quarter, but how this 1.9% is going to improve because opex, I still see to remain sticky. At the same time, on the yield side also, if the vehicle segment is kind of -- the growth is slow, then the competition can also keep some pressure on yields. So still, I mean, beyond fee income, there is some kind of -- I have a concern around yields. And also, how do you see opex kind of looking ahead? So eventually, I mean, we can visualize how the ROA is going to be?
Life Insurance Corporation Of India
Two questions. The first one is on margin. And here, I am looking how the margins were at first half vis-à-vis how they have gone to 9 months. Now between first half to 9 months, if I were to look, if at all the bond yields have softened may be by 10, 15 basis points, and you also had this new surrender value regulations implementation. Now in this backdrop, we get the par margins, if I just try to take out Q3 has gone up from, say, 10% in first half to 13% for the quarter, taking the cumulative margin to 10.8%, so this 13% for par. Similarly on the non-par also, these are just marginal uptick. Now this despite the bond is softening and surrender regulation implementation. So what had been the kind of underlying drivers? I mean, how did you have you kind of a change in a way you pay out the distribution commissions? Or you have dramatically changed the benefits in your products? What had changed that has kind of driven this margin improvement despite the bond yields going down on this implementation of new surrender value regulation? So that's question one. And question number two is now on your non-par savings, particularly the non-par saving, not ULIP or not annuity, non-par saving, the regular non-par guaranteed saving product, now that is a reasonably big number even for your balance sheet of your size. Now your individual non-par APE is INR 3,000 to INR 3,100 crores for the 9 months, almost like up 120%. Now can you please help us, how are you now hedging the -- your -- this guaranteed risk? Have you kind of started entering into FRA agreement or something else? Because now this number has become pretty, pretty big. I mean until last year, these numbers were kind of manageable in the balance side -- balance sheet size of yours, but now this is becoming bigger and bigger. So have you already started kind of entering into FRA agreement and all? How are you hedging this kind of interest rate risk in this guarantee product? These are my 2 questions.
Just a follow-up on the first part, that if I heard you correctly, because you have kind of pruned your portfolio to sort of -- in terms of ticket sizes in band and all to sort of have a better persistency experience, that means that you are saying that, I mean, your operating assumption in terms of persistency for the policies sold after 1st October is improved versus what it was earlier? I mean you are now assuming a better persistency. That's one. The second, again, given that how the numbers are coming, I mean, of course, you are a market leader by a wide margin. But in individual side, you have been losing markets share. And if you were to -- or rather you have cut the policyholder benefit or revised premium rates upward, don't you see that will further kind of continue to affect your market share or growth in retail business?
Go Digit General Insurance Limited
Thanks for the opportunity. F ew questions. The first one is on your inward reinsurance. If we see -- it seems that has seen a strong growth. If you can help us understand the underlying segment in this kind of nearly INR560-odd crores of inward reinsurance premium that you have got th is quarter. So what was the underlying segment? And second is on your corporate health that segment I mean you said that the price competition is there and seeing kind of a decline, but in terms of profitability it seems that has kind of dramatically improved with that corporate health segment delivering a strong underwriting profit. So, what do you see -- I mean, how do you see this thing? I mean, is this trend going to be sustainable or I mean with your sort of changing mix that corporate health becomes relatively less meaningful. So, I mean some color on that okay what has worked in terms of profitability there because the underlying profitability improvement is strong. And thirdly, I mean on Motor TP, now of course there has not been a tariff hike. But if we see your performance, some peers and overall industry also, still the reserve release trends are kind of really strong. And if you were to adjust that I mean the claims ratio in Motor TP are still somewhat where it's profitable. The reason being that one has to look discounted basis. And given this kind of a regulated mandatory product the tariff cannot be decided allowing for a higher expenses. So, it will be more like decided by claims. So how do you see motor TP tariff playing out next year? Do you see it kind of again no hike or there could be certain segments where there could be hike, but no broad-based hike. So these are my three questions?
Okay. Thanks.
Max Financial Services Limited
A couple of questions. If you can just help us understand sort of what is working for you in the annuity? Because typically, annuity has been something that you used to sell more in the second half, but this year, even in the first half, you are selling a good amount of annuity and particularly the trend in the industry on annuity has been a bit of a mix. So I mean, what is helping you there? Is it some sort of the return of , I mean for this particular with channels, those are helping? And if at all, I mean, on a Y -o-Y basis, your annuity margins , if your margin profile is similar in the case of annuity. So that's first question. And second, if I were to look at, I mean, your accounting profit, of course, it had come better. And particularly, if I see the growth in new business strain has been on the lower side. Is it more to do with a PAR and maybe single premium annuity this year being higher than last year? Or is there something more to it?