So Anuj, coming back to one of the previous participants questions. You mentioned that one can probably conservatively build in around 3.5% to 4% MF will decline and maybe you gun for maybe in the range of around 1% to 2%. Now whether it's 3 .5% or 1% to 2%, I mean just wanted to get some sense of what are you factoring in when you kind of are thinking on those lines? Is it a factor of the negotiations on the midrange AMCs that you mentioned, which are planned, the asset mix, what are your expectations on that? And also any probable discussions that might take place, as you highlighted, you do not rule out any possibility of such discussion. So just want to get the factors that you are kind of building in, in this expectations of MF yields. The second question and the third question are data keeping question. On the CAMSPay business, if you can give some color on the MF and the non -MF and within the non -MF also, if you can kind of break it up into some subparts. And also on the KRA business, what would be the composition of the non-MF business currently?
Questions across 19 calls
Dipanjan Ghosh
Citigroup
Computer Age Management Services Limited
Just a few questions from my side. First, in the CAMSPay business, you mentioned that today almost around 55% to 60% is from the MF side and rest from non -MF. So if you can give a similar number for, let's say, the first half of last fiscal, so that will be great. Second, on the alternate business, it seems that there have been some yield pickup over the last maybe 3 or 4 quarters including this present quarter. A similar trend probably what we are seeing in case of some of your competitors also. So I wanted to get some sense of is it like more value- added services being provided to the alternates or more schemes coming in from these alternates or new client additions. If you can give some color on that? An d lastly, on the KRA business, again, you mentioned that non-MF is now 20% from almost 0% few quarters back. So would it be a fair assumption that the MF piece of the KRA business is going at 30% to 40%?
Sir, just a small follow-up on the Pay business. So the Pay business, which was let's say growing at somewhere around 20-ish sort of high 20s sort of a number in 3Q, 4Q of last year or maybe 2Q also, now that has scaled up to like 50, 60-plus percentage Y-o-Y. And you say that the mix has broadly remained stable between MF and non-MF. So would it be fair to assume that this is like more non-MF clients coming in and whatever organic growth you're seeing on the MF pay side, I mean natural client additions you're seeing or volume additions?
Star Health and Allied Insurance Company Limited
Hi, good morning, sir. A few questions from my side. First of all, I just wanted to look at your YoY growth in the value of claims that you have paid. Just wanted to understand if you were to break it between inflation for similar treatments, again to the extent possible, versus, let's say, claims frequency or incidence. I mean, how would that trajectory have fared in FY26 versus, let's say, the past few years or historically witnessed averages? The second question is now that you have started seeing improvement in your retail claims ratio on a YoY basis and the quantum of YoY change seems to be improving in terms of the claims ratio going down. Some of it is obviously new business, but if you can give some color on how the back book is trending and especially some of your vintage products which historically have witnessed some pressure, that would be really great. Any qualitative feedback on that? The third question is on the agency front. You mentioned that you want to touch almost 10 lakh agents over the next two years. Now, once you reach a certain size and scale in terms of the proprietary channel and given the competitive pressure, what sort of strategies around ring-fencing, activation, including productivity or curtailing or controlling commission payouts in those channels, what are the strategies? I have one question on the regulatory front, but maybe I can ask it after these three.
Got it. One last question from my side. On the regulatory front , t ill date, we are under a company-level expense of management and while there have been multiple discussions on line of business by EoM, just wanted to understand that when you talk to the regulator, are they cognizant of the fact that there is a natural arbitrage between SAHIs and multi-liners in terms of expense of management on the Retail Health business and if there any consideration on that front?
A few questions from my side, first obviously when you did the price hike first time around, the quantum was high. It also led to adverse selection in hindsight afte r 24 months almost . Now given that you have been taking price hikes for the past five to six months, just want to get some sense of the quality of persistency now, in terms of over the last few months where the cohorts have taken price hike, you would have done some analysis of the customers who have been retained versus those who have probably coded out , so just wanted some qualitative color on the cohort that remains with you, versus the trends that you saw in F HO once you have taken the price hike for the first time, versus this time around and second, what would be the policy persistency levels after the price hike? The second question would be, on this entire rise in claims ratio for FY ’2025 if you can split it between FHO and non-FHO, we will get the data in the disclosure, but it would be great if you can split that up. Two more small data keeping questions. One, given that now your new business growth has revived. Would you be categorical in explaining the gap between less than three or four year bucket claims ratio versus more than that , that will give us some color in terms of how to extrapolate this new business growth through claims ratio trajectory. Lastly, on the claims frequency, you quoted that it has been increasing at 5%-6% but what would be the annualized number?
I am sorry, the question on claims ratio in the newer cohort of less than three, four year versus others, what would be the gap, and has that materially changed?
Sir, just two or three questions from my side. First, it has been almost 14 months now since you took price hike on the FHO, and in this quarter you have at least two full months of where the NEP has flowed into your books. Now, have you done some back testing in terms of how the customer cohort that stayed back with you is behaving compared to, let us say, pre -price hike versus post price hike, just from a P&L claims ratio perspective? The reason I ask this is because this will give us some idea as analysts or investors to really understand how price hike cycles really behave from a P&L standpoint for a 12-to-24-month period. Second, your renewal ratio on the retail side, what you mentioned is that your policy persistency has gone up by 100 bps, and while your overall persistency numbers are down, which basically means that the high-ticket customers or high sum insured customers are coming into either Banca or maybe digital has kind of gone. So, can you give some colour how this changing dynamics on the persistency side versus also on the new business growth side really have an implication on your claims ratio going ahead? And finally on your porting strategy, you mentioned that you have devised a new strategy where you will be refocusing a bit for inward porting. Now wanted to understand that your historical view on that has been that porting can lead to some of the profitability dilution given that there is no waiting period on all those things. So, what's the new strategy you're devising? Which channels will be driving it out there? And one data keeping question, you used to give a number of SME mix within your group health business as per MIS. Can you share that data?
You used to mention the SME business mix within your group health called business, that used to be a presentation in the sli de historically. So, I just wanted to get that number for the first quarter.
Angel One Limited
Sorry, my call got dropped off previously. So just a few questions from my side. First, if I were to look at the industry landscape today, a lot of players with deep pockets or favourable capital regime are offering the MTF facility at far lower rates than the leading peers. Now let's say, unlike broking where marginal difference in brokerage pricing does not really alter the customer return profile, in MTF, a huge divergence of, let's say, 5% plus can meaningfully alter the customers' returns. So on that perspective, assuming this sort of a divergence persists in the industry, would you kind of consider, let's say, differential MTF pricing based on ticket size or even maybe lower your pricing if competitive intensity were to kind of sustain? So that's the first question. The second question is, what sort of aspirations do you really have in terms of scaling up your B2B2C architecture? As you mentioned that as you go into the interiors of the country, B2B2C kind of becomes an important channel to get that last mile customer. And in this line, would you have any inorganic plans also?
Sir, my question also at an extend ed part, which is there is a certain divergence between -- in cost if you were to kind of build it out organically versus, let's say, acquire some of the fast - scaling players. So any inorganic plans that you may likely consider going ahead?
HDFC Life Insurance Company Limited
So, just two questions from my side. One, i f I were to look at your product -level persistency, especially on a nine-month basis, it seems the non-par bucket is where we are seeing a little bit of a pain in the early buckets. So , in terms of the product category or the channel that is really driving this sort of a pain, if you can give some color on that. And my second question is basically, if you were to kind of, let's say, think of the next one or two years, given the sort of competitive intensity that you see across the multi -architecture channels, what sort of confidence do you really have in terms of kind of managing your counter share at these channel partners?
Life Insurance Corporation Of India
Hi, Good evening Sir. So just a few questions from my side. First, in terms of your balance sheet, annually, we get the breakup of your fair value change between Par and Non Par. Obviously, first half, we don't get the overall balance sheet. So if you can just break it up. If I recall correctly, your -- from your par segment, the fair value change was around RS3.9 trillion in -- as of March. So if you can just break that up. My second question is on your VNB margin walk. If I see for the first quarter on a rolling basis, you had a 1.9% positive operating assumption change. And as of first half, it's a minus 1.1%. So would it be fair to assume a majority of this change between 1Q to 1H on a rolling basis is actually the impact of GST not being there? Or is there any other component also? My third question is more on the accounting part. If I recall correctly, since your listing, you made one accounting change, whereby any mark-to-market change on your ASM is being routed through the net worth. This is pertaining to some of the questions asked from your previous participants also in terms of the EV between fair value and non-fair value. Is there a possibility or something that you're considering of some of the excess fair value on the equity side on the non-par book or the ASM part, if that can be parked within the net worth or can be routed through the net worth? I mean, is there any possibility of any accounting charge? Is it even feasible out there? And the last question is on the growth part. Obviously, you have done a good job in terms of business mix alignment. Just wanted to understand at what stage would you feel that the mix is stabilizing and probably focusing on market share stabilization kind of picks up in your priority or taking order out there?
Correct. And the last question on the growth part.
Kfin Technologies Limited
Hope I'm audible. So just a few questions from my side. First, going back to the previous participant's question on Ascent. If I were to look at the gross realizations, which is a basis points of average AUM, that seems to have been on a downward trajector y for some quarters. I understand that there was a large deal that happened last year. So I just wanted to get some color on what is really driving this realization downward trajectory and how to really think of it going ahead. Second, I see there has been some restatement of Ascent's 2024 EBITDA numbers. So if you can give some color on the purpose of the restatement and what really happened out there? Third question is on your domestic mutual fund business. I understand that there are occasional discounts or renegotiations that happen every now and then. But at least for the next, let's say, 12 to 18 months, is there a visibility on relative stability o f this number X of any telescopic pricing impact? And the last question is on the cost part. I mean, given that you have been kind of upgrading or kind of scaling up your capabilities across various business lines, how should one think of incremental employee growth? I see that number of IT engineers in your ecosystem continues to increase. So is there a case where there can be some sort of higher employee cost that kind of gets built in over a period of time?
Max Financial Services Limited
So, just a few questions from my side. First, if I look at the protection number and you mentioned that your pure protection has grown by 26%. So , if you assume like 10% of riders in the base of your overall protection, and that has also grown at like 300% plus. I just wanted to get, is it some degrowth in the health segment? I mean just wanted to triangulate the numbers within the protection segment. Second, your protection growth for the banca has been quite strong for the last 2 or 3 quarters. So , I just want to get some sense or color in terms of what the strategies are on that channel. And the last question is in terms of the EV walk, it seems there has been a decent operating release during the quarter. So, what would be the drivers for that?
And just one data keeping question. If you can split your off line APE breakup between direct and agency?
Go Digit General Insurance Limited
Just a few questions. One, on the retail side of the businesses, if you kind of go line by line across products or channels and then look at the gross commission ratio on a more sub -segmental or sub-channel basis, how are each of these channels or product segments behaving in a more granular fashion? And are you seeing improvements in the overall commission ratio numbers across the industry in any specific product or distribution cohort out there? Second, on the group health side of the business, two questions; one, if you can give some color on the piece of business between larger corporates and smaller corporates, where it's the competitive intensity still elevated? And you mentioned on the benefit -based business is doing well, if you can just quantify the growth numbers? Those were all.
For the bank based -- I mean, the defined benefit business on the bank channels.
Hi, good evening , sir. So I was just asking that, since the public disclosures are not out for the 4th Quarter, just wanted to get some sense of the business that you have underwritten through inward feeding. Is it more on the government Health or group Health or crop? So that will be the first question. Second, on the commercial lines you mentioned that while o n the April initial renewals or lumpy renewals, there was significant competition . G oing ahead , on the smaller lines of businesses the competition has kind of been relatively behind. So maybe if I were to just look at, let's say, for the year FY ‘ 26 of going ahead, what would be your ambitions in terms of kind of increasing that line of business? And third, on your overall Health portfolio, if you can split the claims ratio number between retail and employer-employee.
The last question was , if you can split the claims ratio number for the Health business between employer-employee and others.
SBI Life Insurance Company Limited
So just a few questions from my side. First, in terms of the agency, despite a shift in business mix towards more of par and non -par, the agency activation rates are up Y -o-Y. So just wanted to get some sense in case the market environment improves, and le t's say, the ULIP kind of picks up, what sort of agent activity rates improvement are you really factoring in, in your overall growth estimate for the year? Second, in terms of your overall commentary at the start of the call where you mentioned that there were green shoots towards the end of the quarter in your guaranteed return products and in terms of the overall business also. I mean, are you seeing similar trends playing out, let's say, even in July? And I mean how is the feet on street clearly kind of giving their response to it? And last question is on the entire kind of journey of ULIP margins across the industry, we have seen pick up in the ULIP margin profile. In terms of your positioning out there, how much more scope do you see in terms of improving the margin profile across each of the product segments and more specifically ULIP?
Got it. Just on the second question, just a follow-up that my question was more in terms of the commentary that towards the second half of June, probably things picked up. You mentioned on the banca side, things are looking good. You mentioned that guarant eed return is looking good. So I just wanted to understand, is the trend continuing going into July? Or is it more of like a June end phenomenon , which probably kind of did not spill over to the second quarter?
Hi. Good evening, sir. Two questions from my side. Firstly, if you can kind of mention the product pipeline for the next three months and maybe for next half year. Second, when you say that your agency payout has been tweaked here and there can you give some colour on that? Is it like more product mix being changed or you have been doing payouts to operational performance of products, or is it just payouts of change, etcetera? And lastly, you have added a lot of agents over the last few years and again market sharing that. But can you give some colour on how the vintage -wise agent productivity has changed historically versus, let's say, the last one or two years and currently?
On the agency pay-out strategy, are there any variables or is it linked to mix change or operational performance or something?
Nuvama Wealth Management Limited
Just a few questions from my side. First, in terms of the transactional business, despite broking being a little volatile, we have seen th em do quite well, both in Private and Wealth. So, I just wanted to get some sense of when you look at the next 1 to 2 years, what will be the key revenue streams in this transactional portion, excluding broking obviously? And what's the pipeline sort of looking like that you can think of in that segment? Second, in your opening remarks, you mentioned that the pipeline on the IPO side is holding up well. So, from a model ling perspective, can you give some color on the pipeline or revenue potential out there? The third question is coming back to the custody clearing business. Obviously, last year was a year of significant number of new client additions. How is that looking like, let's say, for the next four, five quarters? And just one data keeping question. If you can quantify your corporate treasury book in the Nuvama Private business?
Sir, the corporate treasury book on the Nuvama Private side, the quantum?
Just a few questions. Now we see 1 month into the quarter, in terms of activity levels on the wealth side, both on incremental flow on the ARR side or on the transactional pipeline, how you see things kind of play out, if you can give some color on that? Second would be on the transactional income that you are booking in your both Nuvama Private and maybe a little bit of the Nuvama Wealth Management segment also. In terms of quality of the underlying product that you're really down selling, if you can kind of break it up or maybe give some color so that we can get some understanding of how this should be on a more steady state-run rate basis. And lastly, if the markets were to remain sluggish for, let's say, a prolonged period, what sort of expense levers would you really have to kind of manage your margins? Or do you expect the margins to sustain at current levels?
Got it. Got it. Just 1 follow -up, if I may. In terms of the RMs that you have added , the productivity pick up, that should play out over near to medium term. Now obviously, on a low base, you're currently operating at a flow to opening, which is significantly strong, like north of 30%, as you mentioned. How do you see that changing as the business scales up and also, the productivity levels pick up? I mean, how do 2 things really work in parallel?
UTI Asset Management Company Limited
Just a few questions from my side. First, on the SIP flow number, just for you guys, can you just kind of split it between different channels or a ballpark qualitative understanding of that? And second, on these lines, when the market has seen some margina l dip in the SIP number, be it in terms of gross flows or new registrations, how has been the trend for you across channel partnerships or customer cohorts? If you can give some color on that? And the second question, when I look at -- and this is not for the quarter, but annually, when I look at your RTA payouts, they're significantly higher than what I look at it for peers. I just wanted to understand, is there some other additional work that the RTAs are doing for you? And can there be some headroom on that part over the next 2 to 3 years?
Yes. On the AMC financials.
HDFC Asset Management Company Limited
First question, on the SIP number and if I see your SIP ticket size on a March exit basis, it seems that it has gone down by around 10%, 12% on a YoY basis. While I understand that the industry numbers have also kind of been a little soft on the SIP ticket size, but it seems that for you the decline has been a little bit more and also your SIP market share also over the last two quarters have been a little soft. So, I just want to get some idea of why is this differential in ticket size trajectory between you and the in dustry? That would be the first question. My second question is a follow up on one of the previous participant ’s question in terms of the yield number. Normally seasonally always in the fourth quarter historically we have also seen some adjustments that happen. So, first is, has there b een any adjustment in this quarter or the entire 0.9 bps of decline can be entirely attributed to the mix change out there? And the last question is on the OPEX part. I mean, ex of ESOP or even including ESOP for that matter the expense guidance of 10 % to 15%, does that hold true going ahead?
I’m just taking your operational revenue, which is like let ’s say 9 billion almost for the quarter … on your operating revenue, only the operational yields, not the operating margins.
Aditya Birla Sun Life AMC Limited
Hi, good evening Sir. Firstly, two data keeping questions. If you can give the SIP AUM number for Q2 and Q1 and also the overall employee base for Q2 and Q1? Second, if you can just give some color on what is the current payout in the market and your net yields in equities on the blended versus the incremental yields that you're getting on fresh business? If you can give some color on that. And lastly, you mentioned some points on strategies that you've adopted to kind of stabilize the SIP market s hare. So, if you can give some color on incremental trends in October and November and what are the strategies, if you can outline some of them ? Those are my questions.
If I heard it correctly its 55 to 60 bps on fresh, right?