Canara HSBC Life Insurance Company Limited — Q3 FY26

Canara HSBC Life Insurance Company Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=AtDTJkpMoDQ Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Canada HSBC life insurance for 9 monthly FI26 results quarter 3 0:11 11 seconds conference call hosted by Motilal Oswwell Financial Service Limited. As a reminder, all participant line will be in the listenon mode and there will be 0:19 19 seconds an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an 0:27 27 seconds operator by pressing star then zero on your touchdown phone. I now hand the conference over to Mr. Pra Shell from Utila Los. Thank you and over to you sir. 0:37 37 seconds Thank you Danish. Uh good evening everyone. Uh it's a privilege to host the senior management of Canada is busy life insurance limited. Uh from the 0:46 46 seconds management we have Mr. Anojim Matur MD and CEO Mr. Tarun Rastagi CFO Mr. Nitan Agraal appointed actuary and Mr. Amit 0:55 55 seconds Jane head. I now hand over the call to Mr. Anoj Matur MD and CEO. Over to you sir. Thanks Parish. Uh good evening to 1:04 1 minute, 4 seconds everyone. Uh Anoj here. Uh first of all thanks a lot for joining in for this call slightly late in the day. Uh but 1:10 1 minute, 10 seconds thank you very much and uh uh our results are now updated on the website of the company as well as both the stock 1:18 1 minute, 18 seconds exchanges. So that's already there. We have also circulated our investor presentation containing key business highlights and happy to share further 1:27 1 minute, 27 seconds insights during this call. U so first of all I'd like to talk about some of the key developments in the insurance sector 1:34 1 minute, 34 seconds and then I'll touch upon the company performance. So if you look at this quarter uh when I say this quarter I'm talking of uh October to December period 1:43 1 minute, 43 seconds actually we have witnessed uh good reforms uh with the passage of uh skaba bima suraka this amendment of insurance 1:51 1 minute, 51 seconds laws bill 2025 the legislation is expected to accelerate India's journey towards universal insurance coverage by 2047 1:59 1 minute, 59 seconds while unlocking significant opportunities for investors a key development here is increase in FDI limit from 74% to 100% % which is likely 2:08 2 minutes, 8 seconds to attract long-term capital uh into the business and deeper participation in sector. Uh alongside measures such as 2:16 2 minutes, 16 seconds enhanced policyholder protection, simplified business processes, stronger regulatory framework, I think all these factors together provides a very 2:24 2 minutes, 24 seconds compelling growth story uh over a period of time for insurance sector. If I talk about the macroeconomic front, uh India's GDP growth remains robust 2:33 2 minutes, 33 seconds underpinned by structural reforms implemented over last few years. 2:38 2 minutes, 38 seconds Reflecting this momentum, several institutions uh including the Reserve Bank of India have revised the growth forecast for the country to 7.3%. 2:46 2 minutes, 46 seconds Which reinforces the confidence which is there in the country's long-term trajectory. uh so while the global environment continues to be marked by 2:54 2 minutes, 54 seconds volatility and geopolitical tension India's strong fundamentals and reform driven resilience position I think India 3:02 3 minutes, 2 seconds is a very attractive investment destination and within that insurance is well poised for the growth some of the things which we saw uh towards end of 3:11 3 minutes, 11 seconds September in terms of GST changes all that are resulting into positive tailwinds for the industry so friends now I'd like to discuss about the 3:19 3 minutes, 19 seconds company's business performance for this 9 months period which ended on 31st of December 2025. 3:26 3 minutes, 26 seconds Um talking about our overall growth, I'm very happy, delighted to share that as far as our company is concerned, we have seen our individual W individual 3:35 3 minutes, 35 seconds weighted premium income which we call as WPI has grown at a healthy pace of 20% yearonear uh for the 9 months period which ended 3:44 3 minutes, 44 seconds 31st of December. And if I talk about quarteron quarter uh yearon year uh Q3 of last year versus Q3 of this year we have seen growth of 29%. 3:53 3 minutes, 53 seconds And this is led by sustained demand in the unit business along with focus strategy on increasing protection and annot. And I'll cover this aspect in 4:01 4 minutes, 1 second little bit of detail uh during the conversation. We continue to outperform both private players which grew by by 4:08 4 minutes, 8 seconds 13% yearon year and the industry which grew at 10% yearon year during this period. So we have actually outperformed 4:16 4 minutes, 16 seconds uh the industry uh and also the private players during this period. As I mentioned the green shoots of GST lead demand are now visible with our retail 4:24 4 minutes, 24 seconds protection business growing almost three times quarteron quarter while credit line business continues to see healthy growth of 50% during the quarter. So 4:32 4 minutes, 32 seconds this is again a very positive development where we have seen good growth in our credit line business as well. We believe there is a structural uptake in the segment and hence expect that demand will continue to rise. 4:44 4 minutes, 44 seconds Talking about our uh annuity business. 4:47 4 minutes, 47 seconds So our annuity AP continue to grow at healthy pace of 34% yearon year for 9 months period. Within annual we continue 4:55 4 minutes, 55 seconds to focus on deferred annuity which offers a more holistic solutions to customers and a profitable segment. So this is something which we covered in 5:04 5 minutes, 4 seconds the past also in terms of retirement as a segment and we are quite bullish on it and we have seen very good growth over uh in this quarter in our case. 5:13 5 minutes, 13 seconds Uh talking about customer preference so we have seen that customer preference has been towards link products uh so 5:20 5 minutes, 20 seconds which has led to steady growth of 23% yearon year for the 9 months period. Our UL products are not only ensuring wealth 5:27 5 minutes, 27 seconds creation but as we started offering riders along with the ULI products also providing policy holders to have enhanced protection cover through 5:35 5 minutes, 35 seconds various options. So this rider attachment is also helping us in enhancing our margins on ULIP products and this is something which we have read 5:42 5 minutes, 42 seconds mentioned in the past also that riders and I'm going to talk about the overall protection strategy also in next few minutes is actually helping us in terms 5:50 5 minutes, 50 seconds of our margins. Talking about renewable premiums uh we have maintained strong momentum uh recording a 34% year-on-year 5:57 5 minutes, 57 seconds growth for the 9 months period uh and 43% yearonear for Q3. So this translates into further improvement in our persistency across all key cohorts. 6:08 6 minutes, 8 seconds Happy to share our 13-month persistency has risen to 85.6% from 82.5% in FY25. So there is a very 6:17 6 minutes, 17 seconds healthy increase here. Similarly, if I talk about 61st month persistency, it has improved to 59.5% compared to 57.57% in FY25. 6:28 6 minutes, 28 seconds So these consistent improvements underscore the strength of our customer retention, the quality of sales, the sales practices and the long-term sustainability of our growth trajectory. 6:41 6 minutes, 41 seconds Also would like to mention that we launched our agency business in October 25 and uh it's actually building up. 6:48 6 minutes, 48 seconds We're very happy uh with initial success. Uh there is uh early momentum which is encouraging. As planned, we 6:55 6 minutes, 55 seconds will scale up the agency branch infrastructure in a phased manner. So, so, so we are on track and this is something which we launched about three months back. 7:05 7 minutes, 5 seconds Now, let me take you through some of the key financial metrics. Our value of new business for 9 months, so this is absolute VNB stood at rupees 413 crores. 7:16 7 minutes, 16 seconds Uh, it has grown uh 37% yearonear. 7:20 7 minutes, 20 seconds Despite the GST impact, we have been able to increase our new business margin which stood at 19.7% for the 9 months 7:27 7 minutes, 27 seconds period which ended on 31st of December reflecting an almost 200 basis points improvement year on year. So some of the 7:37 7 minutes, 37 seconds key factors which have resulted into this uh healthy margin I'm going to talk about. So one we have seen uh good 7:44 7 minutes, 44 seconds growth in our individual protection business and this is something where we are seeing benefits coming from GSTs. So clearly positive tailwinds coming into 7:53 7 minutes, 53 seconds play uh which is helping us to expand our individual protection business and we have also seen a sustained growth in credit life something which I touched 8:00 8 minutes upon earlier also uh that we have seen good growth in our credit life business which is a profitable segment. Number two higher rider attachments in the 8:09 8 minutes, 9 seconds ULIP. So we have been able to kind of grow our ULIP business but at the same time we have been able to attach riders protection riders with it which has 8:18 8 minutes, 18 seconds helped us in terms of our margins and company will continue with the strategy going forward also in terms of rider attachments. 8:25 8 minutes, 25 seconds Uh number three higher volumes which aided in higher fixed cost absorption. 8:30 8 minutes, 30 seconds So uh costs are if I if I look at the insurance industry as such majority of cost costs are fixed in nature. So if 8:37 8 minutes, 37 seconds you're able to scale up the business you see an impact positive impact on VNV and which is what we have seen that because of high volumes this has aided in us in our VNP margin optimization. 8:48 8 minutes, 48 seconds Number four longer premium payment term under ULI business. So that's also we have seen that we are able to sell longer uh premium payment term uh 8:56 8 minutes, 56 seconds premium payment policies which helps in margin enhancement. And then number five is the favorable movement from the yield 9:04 9 minutes, 4 seconds curve. So that is something which uh entire industry has witnessed and that is again a very positive thing. So these were the key reasons for uh VNB 9:12 9 minutes, 12 seconds optimization. Now I'd like to also touch upon the expenses side in terms of how we have done on our operating expenses. 9:19 9 minutes, 19 seconds So we continue to rationalize our expenses which is leading to a structural improvement in our expense ratio. Our total expense ratio for 9 9:27 9 minutes, 27 seconds months uh as of 31st of December 2025 has improved to 18.7%. 9:34 9 minutes, 34 seconds This is an improvement of 130 basis points over the same period last year. 9:39 9 minutes, 39 seconds So, so that's on the cost strength that we have been able to improve our cost ratio. Talking about our embedded value EV Indian embedded value uh that has 9:48 9 minutes, 48 seconds grown by 17% yearonear uh reaching 6,868 crores with operating roe of 18.2% on 9:58 9 minutes, 58 seconds rolling 12 months basis. So that is on the embedded value front. Uh moving on to other financial metrics. uh if I talk 10:06 10 minutes, 6 seconds about profit after tax for 9 months uh ended on 31st of December it stood at 92 crores uh which is an increase of 8% 10:14 10 minutes, 14 seconds yearon year. This is after factoring in uh the GST impact as well as the impact on account of uh new labor code. Uh so 10:23 10 minutes, 23 seconds we have seen in this period uh we have actually provided for the um the uh additional ask which was there on account of new labor labor code of about 10:31 10 minutes, 31 seconds 9 crores. So that has been factored in um and uh uh accordingly we have calculated our margins. So if we exclude 10:39 10 minutes, 39 seconds our one of impact from new labor code our PAT stood at 101 cr which is an increase of 19% over last year. So 92 cr 10:48 10 minutes, 48 seconds is factoring in this onetime impact and if we adjust for that then it is 101 cr uh which leads which which is actually 10:56 10 minutes, 56 seconds 19% increase over previous year. Our solvency ratio currently stands at 191%. 11:02 11 minutes, 2 seconds And uh we have also taken approval from our board to raise uh subordinate debt of rupees 250 crores which will help us 11:10 11 minutes, 10 seconds to further boost our solvency. As I mentioned our focus is on protection. Uh so for that whatever is required in terms of raising subordinate debt, 11:18 11 minutes, 18 seconds improving solveny margin all of that is being done to support growth in new business and overall channel expansion. 11:26 11 minutes, 26 seconds So just to conclude and then we can have question Q&A. Uh so we remain firmly optimistic about the long-term growth 11:34 11 minutes, 34 seconds prospects of the Indian life insurance sector underpinned by our robust growth trajectory and strengthening financial position. We expect we expect protection 11:43 11 minutes, 43 seconds to continue its upward trend while bank insurance remains a key driver of our success. We are strategically investing in alterate distribution channels to 11:52 11 minutes, 52 seconds ensure sustainable and diversified growth. So I'm going to stop here and me and my colleagues we are all here to take questions. Uh so over to you. 12:11 12 minutes, 11 seconds Yes. Thank you so much sir. Ladies and gentlemen, we'll wait for a we'll now begin with a question and answer 12:19 12 minutes, 19 seconds session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, 12:26 12 minutes, 26 seconds you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 12:42 12 minutes, 42 seconds Our first question come from the line of Sukrit Dartil from Eyesight Fred Private Limited. Please go ahead. 12:57 12 minutes, 57 seconds Sukrit, you may please proceed ahead with your question. 13:05 13 minutes, 5 seconds Sukrit, please proceed ahead with your question. 13:12 13 minutes, 12 seconds As there are no response from Departil, we'll move forward to the next participant. 13:18 13 minutes, 18 seconds Our next question come from the line of Swarnab Mukharji from BNK securities. Please go ahead. 13:25 13 minutes, 25 seconds Yes. Hi sir, thank you for the opportunity and uh congrats on a good set of numbers. Uh two questions from my 13:32 13 minutes, 32 seconds side sir. So first of all I think I just wanted to uh uh understand the math behind VNB because uh I think the role 13:42 13 minutes, 42 seconds forward that you have provided this quarter in terms of VNB uh uh between uh 13:49 13 minutes, 49 seconds uh you know last year and uh uh you know same so between 9 month and 9 month last 13:56 13 minutes, 56 seconds year. So there the uh I mean broadly the impact of labor code and uh GST is coming to around uh 40 odd crores right. 14:07 14 minutes, 7 seconds So uh I just wanted to understand I think largely this would be pertaining uh to the uh to this I think around five 14:16 14 minutes, 16 seconds six odd crores was there last quarter apart from that around 35 odd cr would be pertaining to this quarter. So in 14:23 14 minutes, 23 seconds that case if I had to kind of uh add this back say 35 odd crores to your uh this quarter's VNB number which is 14:31 14 minutes, 31 seconds essentially I think close to 200 odd crores then would would the core margin I mean the would the core VNB be 14:38 14 minutes, 38 seconds somewhere around this 230 235 odd crores would that be a right number uh to uh look at sir 14:46 14 minutes, 46 seconds so u if you have any further questions maybe first you can u maybe share the questions and Then I'll request my colleague um our appointed actually 14:56 14 minutes, 56 seconds Nitin to kind of respond to this VNB question. 14:58 14 minutes, 58 seconds Sure. Sure. So that was one question and in essence I think that kind of highlights that maybe you know our core margin is closer to 23. Just wanted to 15:06 15 minutes, 6 seconds understand if my thought process is correct in this. Uh second is u uh uh in 15:13 15 minutes, 13 seconds terms of uh the uh you know the GST cost impact. So whatever we have accounted for in here. So how do we see this 15:21 15 minutes, 21 seconds getting mitigated subsequently and uh uh you know what are you what are you doing to do that if there are negotiations 15:28 15 minutes, 28 seconds with distributors uh how are we positioned in that process if you could give some color on that 15:35 15 minutes, 35 seconds second is uh in case of u your savings product so I think uh I could not find in the presentation a breakup between 15:44 15 minutes, 44 seconds par and non-par uh so if you could uh highlight on uh that and Plus uh I think the product mix that you have given in 9 month FI26 is around ULIP is around 60%. 15:58 15 minutes, 58 seconds Um while I think in 1H what you had reported the ULIP uh mix was for 1H 50 16:06 16 minutes, 6 seconds odd percent. So I'm am I missing something or or we if we could highlight why this delta is so significant and uh 16:15 16 minutes, 15 seconds in terms of persistency last question would be in terms of persistency. So this improvement that we are seeing uh 16:22 16 minutes, 22 seconds is this an outcome of a change in product mix or would this be a function of you know you are seeing even within 16:31 16 minutes, 31 seconds product categories also persistency improving. Uh so these are my core questions. Thank Right. So maybe Nitan uh you can first answer the VNB question. 16:40 16 minutes, 40 seconds Yeah. Hi. So the math on the VNB is that uh so effectively from labor code plus 16:47 16 minutes, 47 seconds GST on BNB absolute is about an impact of 40 crores about and so that is what when you add it back uh to your current 16:56 16 minutes, 56 seconds reported margin of 19.7 it it roughly adds up to about 2%. So which is what uh the margin so this margin of 19.7 would actually become somewhere around 21.7. 17:08 17 minutes, 8 seconds So that is uh how the margin would look like if you were to add back these two impacts. Uh 17:14 17 minutes, 14 seconds just if I if I may interject once sir so most this impact out of that 40 crores 35 crores is this quarter right? Uh last 17:23 17 minutes, 23 seconds quarter you had reported I think five to six crores in terms of GST. This is YTD impact. This is not a quarter impact because we are not doing a 17:31 17 minutes, 31 seconds quarteronquarter walk here. This is a total impact so far uh till December 2025 17:39 17 minutes, 39 seconds uh what we have recorded. So this is the overall impact. This is not a quarterly impact. 17:44 17 minutes, 44 seconds Okay. So just to understand sir that this is driving only uh not only for the new business but also some changes that you might have taken into account of the back book written this year. 17:57 17 minutes, 57 seconds That's right. That is part of the management action where we've taken some management action. Uh for the backbook only the renewal renewal commissions 18:04 18 minutes, 4 seconds would have gotten impacted. The initial commission would only have gotten impacted in this particular quarter and on the renewal side we have actually you 18:12 18 minutes, 12 seconds know taken management action and able to absorb most of it you know through discussion with the distributors. So to 18:19 18 minutes, 19 seconds that extent the impact primarily even now and future will come from the uh initial commission itself 18:26 18 minutes, 26 seconds and I just want to add on your uh question uh when so 21.7 is the uh 18:34 18 minutes, 34 seconds resultant number or adjusted BNB but GST impact is uh you know the next quarter 18:41 18 minutes, 41 seconds which is JFM we are expecting more impact on on that because some of the actions which we have taken will take a 18:49 18 minutes, 49 seconds full-blown impact or effect will come next year. Uh so therefore uh and and 18:56 18 minutes, 56 seconds this is a permanent impact. Uh just trying just make you understand that you know once this impact is there it is 19:03 19 minutes, 3 seconds resetting the baseline. So this is right now until unless there is a product change complete change in the product uh 19:11 19 minutes, 11 seconds construct it is not possible to come back and re you know get this margin 19:17 19 minutes, 17 seconds back. uh in the product. So overall uh since you have covered and just mentioned and touched upon the VNB 19:25 19 minutes, 25 seconds the annualize impact last time when we shared was 225 basis without management action and what just Nitin mentioned 19:32 19 minutes, 32 seconds that one of the critical action which we have done and uh it is now effective is agreement on absorption of the GST cost 19:41 19 minutes, 41 seconds on the renewal commission side. So that has been agreed and it is effective now and therefore we are able to reduce and 19:50 19 minutes, 50 seconds along with that uh some other actions uh like on the operating expense side rationalization of expenses you know 19:58 19 minutes, 58 seconds vendor renegotiation after doing all these things uh we expect that this year 20:05 20 minutes, 5 seconds we could see a impact of 185 basis point visav 225 which we mentioned earlier. So 20:12 20 minutes, 12 seconds the overall impact will be around 185 basis point on the VNB margin this year FI26. 20:18 20 minutes, 18 seconds So this is uh on the VNB side and another question you were having is on the GST action we have taken. We have 20:25 20 minutes, 25 seconds already covered and mentioned you major impact was uh benefit which we got was or we were able to counter the GST 20:32 20 minutes, 32 seconds impact through the renewal commission um adjustment. Um in terms of firstear commission I uh we mentioned last time 20:40 20 minutes, 40 seconds also our product commissions are very reasonable with the distributors. So we are not expecting any change in that. Uh there will be some more impact which 20:48 20 minutes, 48 seconds will be positive uh that will be coming from mainly uh on the uh you know expense rationalization uh rather than 20:56 20 minutes, 56 seconds on the commission side. Uh you also ask about u the saving product and the 21:03 21 minutes, 3 seconds participating product mix. So saving product mix is uh uh is around 13% and 21:11 21 minutes, 11 seconds participating is around 5%. For uh this 9 month period um and in terms of persistency you know 21:19 21 minutes, 19 seconds we have seen the improvement in all uh lobs not only one you know change in the 21:25 21 minutes, 25 seconds product mix. So all the cohorts all the uh line of business which is you know participating non-participating unit 21:34 21 minutes, 34 seconds linked we have seen improvement in persistency and that has resulted into the overall performance in all cohorts improvement in all all cohorts and it's 21:44 21 minutes, 44 seconds actually the efforts which have been placed by the team in terms of persistency improvement which is showing in the numbers. So it's part of our our 21:52 21 minutes, 52 seconds company strategy uh which is helping us in terms of higher persistency outcome. 21:59 21 minutes, 59 seconds I hope answered all the questions or anything else you want to know. 22:04 22 minutes, 4 seconds No I think sir broadly addressed and very clearly addressed sir. Thank you so much. All the best. Right. Next question please. 22:13 22 minutes, 13 seconds Thank you. Our next question come from the line of Nishint Javate from Kak Institutional Securities. Please go ahead. 22:21 22 minutes, 21 seconds Yeah. Uh thanks for taking my question. 22:23 22 minutes, 23 seconds Actually just uh you know taking forward from the previous participant you know one of the questions that was asked was uh you know the AP makes uh you know so 22:32 22 minutes, 32 seconds first half was around 50% of Ulip and uh I think 9 months you have put in around 60%. So I think uh the question was uh 22:40 22 minutes, 40 seconds is that the right reading and was ULIP significantly uh stronger in this quarter? 22:46 22 minutes, 46 seconds Yeah. So as I mentioned uh we saw good demand coming in for Ulip and uh we saw that in terms of the volume surge which 22:54 22 minutes, 54 seconds we had in this quarter. Uh but if you see our past also uh in terms of our mix uh we actually in last year also we saw 23:03 23 minutes, 3 seconds that in JFM period January, February, March we had good traditional mix uh which resulted in overall for the year number being at that number. 23:13 23 minutes, 13 seconds This time again following the same strategy. We expect our trad mix to improve from now onwards till 31st of March. We're launching new products also 23:22 23 minutes, 22 seconds during this period which will help us to improve our trad. So we expect that by the end of the year the UL mix should be 23:29 23 minutes, 29 seconds around should come down to about 55% and TRA should move up to 45%. So uh that's what we feel in terms of our uh product mix. 23:41 23 minutes, 41 seconds Okay. Got it. [clears throat] And uh I think on again on the u margins front you know mathematically if I tried to calculate the impact of GST uh for this 23:50 23 minutes, 50 seconds quarter I know you you called out a number of 2.25 and I think now we're saying that we'll probably end the year with 1.8 but uh if I try to 23:57 23 minutes, 57 seconds mathematically calculate the ratio for this quarter it works out to around 2.8. 24:02 24 minutes, 2 seconds So is it just a product mix change that is causing an impact or am I reading the numbers rightly? I mean what I'm simply 24:09 24 minutes, 9 seconds doing is I'm looking at the GST impact of uh you know 9 months minus first half which which works out to be the GST 24:17 24 minutes, 17 seconds impact for third quarter divided by the AP of third quarter I think you probably what you need to do 24:25 24 minutes, 25 seconds is because in for the 3 month uh the business volume that we've seen that has also resulted in higher GST impact 24:33 24 minutes, 33 seconds because you know it's linked to the eventually commission and acquisition opex so That is where the number that you're seeing is looking that but if you 24:42 24 minutes, 42 seconds do the math maths will be done on a fitd basis. So on an FITD basis whatever the impact that we've seen in this quarter 24:49 24 minutes, 49 seconds will actually be have to be divided by the you know the premium AP that you've written for the full year. So you know it so it's not just the numerator in the 24:56 24 minutes, 56 seconds denominator changes. So I think probably what you're doing might not result in the you can't just mathematically calculate that way. ing. So you know the last half year number last year that was 25:05 25 minutes, 5 seconds reported was based on a different basis was based on a different AP calculation whereas this year obviously because the entire impact for this quarter has come in for the business that has been 25:14 25 minutes, 14 seconds written this year this quarter and that is why and because the volume itself that has been written is higher. So, so 25:21 25 minutes, 21 seconds this so this is uh so this is why the number that you calculating is higher but effectively for the full year we do expect the number to be in a in the 25:28 25 minutes, 28 seconds range of about 185 basis points after allowing for all the management action that we are intending to do. 25:35 25 minutes, 35 seconds Sure. And uh sorry for this two and fro but any specific reason why ULIP is so strong in the third quarter for you 25:42 25 minutes, 42 seconds every year? I mean is it like you follow NBRT or you know any of that because of which uh Pulip is so strong for the for for for this quarter? 25:51 25 minutes, 51 seconds Uh I think it was mainly coming from uh one is uh the market is performing and reasonably well performed. uh the market 26:00 26 minutes has performed. We saw that uh you know the demand for unit link continues and uh like we have maintained we are 26:09 26 minutes, 9 seconds maintaining that we we are focusing on man managing the balanced product makes not focusing on or pushing any particular product. So unit link demand 26:18 26 minutes, 18 seconds continues in this particular quarter similar to last year and therefore uh you know the uh the the increase in on 26:27 26 minutes, 27 seconds the unit link side is observed. Uh but you know just to just to take care of the margin side and just to ensure that 26:34 26 minutes, 34 seconds you know this particular increase in unit link demand is not impacting uh our margins. You know a couple of action 26:42 26 minutes, 42 seconds which Anud mentioned has actually helped us and that will continue. So uh you know if you actually see the protection business also has gone up uh this 26:51 26 minutes, 51 seconds quarter. So uh this quarter is uh has has seen improvement in the protection business both on individual side and 27:00 27 minutes group along with that the rider attachment is almost touching 90% 90% of the policies we are able to attach the 27:08 27 minutes, 8 seconds rider and like uh if you recall u in the last call we mentioned that right now we are only attaching one rider. So uh as 27:16 27 minutes, 16 seconds we are launching more riders more variant also we are expecting that the attachment of the writers will improve uh in terms of number of riders and the 27:24 27 minutes, 24 seconds profitability and you know what what we also need to see is this is also giving one more uh you know advantage to the 27:32 27 minutes, 32 seconds policy holder also that they can take a higher coverage uh by paying a small amount of premium and uh it is a win-win 27:40 27 minutes, 40 seconds situation for both uh you know policy holder and for also the company in terms of improving the margin and just to add to what Tarun just 27:48 27 minutes, 48 seconds mentioned uh you see I think cost base is also very important so if you're able to manage your costs well if your expense ratios are low which you have 27:56 27 minutes, 56 seconds seen in case of another uh insurance company that if you are managing your business very very efficiently you can 28:04 28 minutes, 4 seconds generate higher margins even if your ULIP component is higher so I think uh we should not take it that ULIP is a bad sale I think as long as company can 28:13 28 minutes, 13 seconds manage the margin can meet the customer outcome. I think it's a good option to have. So we believe that because of our cost signature uh because of other 28:22 28 minutes, 22 seconds efficiencies we have in our business uh this is actually a good business along with focus on protection as Tarun mentioned riders retail protection is 28:31 28 minutes, 31 seconds actually helping us to grow our market share also and at the same time take care of the margin and uh just one uh again if you could 28:39 28 minutes, 39 seconds give some flavor in terms of you know the momentum that we have seen in protection uh how do you see that going ahead you 28:47 28 minutes, 47 seconds know do you see this kind of moderates a bit? Do you see it fizzles out or uh you know what is what is the thought process 28:54 28 minutes, 54 seconds for uh the fourth quarter? Will will protection kind of uh you know continue to show similar growth or uh how should one really think about it? 29:02 29 minutes, 2 seconds Yeah. 29:03 29 minutes, 3 seconds I mean the ratio of protection has gone up from four to seven. So yeah so so versus you know Q3 versus Q2 29:10 29 minutes, 10 seconds obviously the base was lower. So we will see that momentum is continuing and uh we will expect we you know we are 29:17 29 minutes, 17 seconds targeting similar kind of a sale. Uh just to give a direction that we are targeting to touch uh overall double 29:25 29 minutes, 25 seconds digit number in terms of overall protection which includes group also. So over a period of time uh you know we are uh expecting that our protection 29:33 29 minutes, 33 seconds business will be uh doubledigit uh contribution in the overall sales and uh that will be contributed uh equally from 29:41 29 minutes, 41 seconds the individual protection and the group uh side of a protection. So uh will help us in terms of uh you know enhancing the margin further on on on this area. 29:52 29 minutes, 52 seconds So and if if I can ask how does the current 7% break between group and individual it's almost 50/50 almost 4% in you know 30:01 30 minutes, 1 second there which which used to be significantly tilted towards group earlier uh but this year we have seen a momentum on the individual protection 30:10 30 minutes, 10 seconds along with the significant growth on the group protection. So therefore absolute amount if you see in terms of percentage if you see it's still you know 7%. But 30:18 30 minutes, 18 seconds absolute amount is almost three times of what we sold uh in last quarter. So that absolute amount is helping us in terms of u enhancing the market. 30:28 30 minutes, 28 seconds Got it. And just finally uh last one is uh on the hedging side any change in the hedge coverage or any any update since the last quarter? 30:38 30 minutes, 38 seconds Yeah. So we have as last time also we mentioned so we are consciously working on the hedge ratio and uh we have increased the hedge ratio further from 30:45 30 minutes, 45 seconds last time and that is also helping us in our sensitivities the you know the interested intensity that we've been showing. So that is moving in the right direction. 30:56 30 minutes, 56 seconds Uh sure sure thank you very much uh and all the best. Thank you. 31:02 31 minutes, 2 seconds Thank you. Our next question come from the line of sankit gura from evidence plat. Please go ahead. Uh yeah uh thank you for the opportunity. 31:12 31 minutes, 12 seconds Uh sir my my maybe maybe it's it's kind of a similar question. Uh there is kind of a seasonality in third quarter. Uh when when it comes to growth because 31:20 31 minutes, 20 seconds because 1 growth was was like 11 percentage and and 9 months is 22 which means third quarter it's 37. I think it was a similar trend in in preq last 31:28 31 minutes, 28 seconds year. So, so just wanted to understand why there is kind of a seasonality to to third quarter any any specific reason 31:37 31 minutes, 37 seconds and and it is kind of a thing which will continue forever given given the business is designed or or distribution channels are designed in that way if you 31:45 31 minutes, 45 seconds you can give a bit of color there it will be useful right yeah sanit here so yeah so see this is part of sales strategy that 31:53 31 minutes, 53 seconds every quarter or every month you will try to do something differently so we We actually we have been doing this that in 32:00 32 minutes certain periods we actually focus in a particular segment which is what has happened in Q3 that we we came up with 32:08 32 minutes, 8 seconds NFO uh and that actually helped us in terms of uh getting getting more business. So that is there for the 32:15 32 minutes, 15 seconds current period for the next year again we'll create our seasonality bases what we think is appropriate as for the uh market and as for the customer needs. So 32:24 32 minutes, 24 seconds yeah so and we try to kind of spread it much more kind of I'll say over the quarters rather than in a particular quarter but as I mentioned see it's part 32:32 32 minutes, 32 seconds of sales strategy that you decide okay in certain uh period you will try to focus more on topline and then subsequently you like to focus more on 32:40 32 minutes, 40 seconds the margins and traditional mix. So so this was part of the sales strategy. 32:44 32 minutes, 44 seconds Every year uh we will uh change our sales strategy as per market needs. 32:49 32 minutes, 49 seconds Okay. Uh uh understood. And uh see and the second question again probably on the GST thing uh so so the way I 32:57 32 minutes, 57 seconds understood is that uh uh uh for for the eight or 9 months 9 days of the business in second quarter uh the annualized impact was 225 basis point and uh in in 33:06 33 minutes, 6 seconds the third quarter um which which for 9 months looks like 160 basis point. um that that number is uh is is means if I 33:15 33 minutes, 15 seconds want to analyze only 3Q uh uh impact on the margins due to GST it means if you can quantify that number whether whether 33:22 33 minutes, 22 seconds 160 will translate into what kind of a number and which you alluded that for the full year it might be stopping at 185 compared to 225 you started at at 9 months of 9 days of toq business. 33:34 33 minutes, 34 seconds Uh no actually 225 was not for the 9 days business. Uh 9 days business or September till September the impact was 33:42 33 minutes, 42 seconds 30 basis point. Uh because of annualize I said annualize that 9 days business if you continue to do in that way it would have been 225 right 33:50 33 minutes, 50 seconds and it was it was not the linear annualization because there was some uh you know product mix uh seasonalization 33:58 33 minutes, 58 seconds and also our renewal book and some of the action we had taken. So we did not consider that. So that's why it was not straightforward uh analyzation of that. 34:06 34 minutes, 6 seconds Uh and so that number when we calculated without management action because that point in time we were in the discussion uh with distributors and also with 34:15 34 minutes, 15 seconds vendors and also working on how to dationalize cost. It was expected to impact uh our BNB margin for 26 uh by 34:23 34 minutes, 23 seconds 225 basis point. But after doing the action and uh you know rationalization of uh expenses, operating expenses, 34:31 34 minutes, 31 seconds renegotiation of uh you know some of the contracts with the vendors and also uh important thing which we able which we 34:39 34 minutes, 39 seconds are able to do is uh you know work on the renewal commission side which has a longish impact because it is going to 34:47 34 minutes, 47 seconds have a positive impact on the embedded value also. So we are able to reduce this 225 basis uh annual impact to 185. 34:55 34 minutes, 55 seconds So we expect that by year end we will have this impact and obviously there are some few more actions are which are work in progress. So we have not counted that 35:04 35 minutes, 4 seconds there is a possibility that it might be plus minus 5% here and there uh you know five basis point or 10 basis point here 35:11 35 minutes, 11 seconds and there but uh this is what our current calculation says that uh uh you know when we start a new year which is FI27 35:19 35 minutes, 19 seconds uh you know this impact would have been taken care and then obviously there will be a fresh start. 35:25 35 minutes, 25 seconds Understood. So, so unlike uh a few peers uh uh which reported uh impact of GST only for the incremental business and 35:33 35 minutes, 33 seconds and the renewal impact for the business which was done from 1st April to to to September was directly adjusted in the EV. We we did not do it in that way 35:42 35 minutes, 42 seconds right we rooted entirely through through through the VNB of the current year that's that's a fair understanding we did that we did that in the EV walk 35:49 35 minutes, 49 seconds if you saw uh there was an impact of around 20 K uh which was mentioned and that was actually taken care of the 35:57 35 minutes, 57 seconds inforce book till 30th September. So we did we took that impact and that impact is expected to maybe uh you know uh five 36:06 36 minutes, 6 seconds to 10 basis point additional impact can come because there is some renewal book uh with uh some of the distributors 36:13 36 minutes, 13 seconds which might be having some GST impact uh you know continuing but uh we are not expecting that to go significantly so 36:21 36 minutes, 21 seconds that impact had already been taken. So, so, so, sorry, sorry again. Uh, my so my understanding I mean the way you 36:28 36 minutes, 28 seconds explained it seems that that 160 basis point impact in in the full year margin is only for the business done from uh last week of September to till last week 36:37 36 minutes, 37 seconds of December. That's that's the way I need to understand right. Yeah. 36:39 36 minutes, 39 seconds And and and that impact that impact which is 160 for the full year it should stop at 185. Yes. 36:46 36 minutes, 46 seconds Okay. Okay. Understood. Understood. and and and the and and this next question uh I I had was that uh uh sorry just to 36:54 36 minutes, 54 seconds just to clarify on protection when you said uh uh four percentage you mean to say out of the seven percentage 4 percentage is individual or or group? 37:02 37 minutes, 2 seconds Yeah. So 3.5 and 3.5 kind of a 50/50 mixes there between individual and group. 37:07 37 minutes, 7 seconds Okay. Okay. and and uh uh in in credit life uh uh just want to understand that it is predominantly sitting in in Canada 37:14 37 minutes, 14 seconds and and what is our attachment rates for the dispersements done in Canada bank or or HSBC bank in that sense 37:21 37 minutes, 21 seconds um so yeah um major is Canada um and we have seen our attachment rates actually going up uh hovering in the range of 37:29 37 minutes, 29 seconds about 45 to 50% uh is what we have witnessed so far okay okay and uh and and lastly to Nin. 37:38 37 minutes, 38 seconds Um see if hypothetically assume if you fully hedge your book uh say say at some point in time uh then then uh uh given 37:47 37 minutes, 47 seconds the hedging cost will naturally will have impact on the margins. Uh so so just wanted to understand um hypothetically assume by end of the year 37:55 37 minutes, 55 seconds if your intention is to fully hedge the book uh what likely impact it will have on the margin. 38:01 38 minutes, 1 second Actually uh the impact is quite immaterial. So from the hedging cost perspective we've seen that. So it's the cost its impact is quite immaterial and 38:10 38 minutes, 10 seconds as I mentioned earlier also that the our fedging has also helped our interested sensitivity and now we are heading towards you know getting closer to you know zero. 38:21 38 minutes, 21 seconds Okay. Okay. Uh no. Uh okay. Fine. Fine. 38:25 38 minutes, 25 seconds I understood that point. And and lastly on on banka can you give the mix uh uh I mean 93% of the total uh NVP sorry WPRI 38:34 38 minutes, 34 seconds you mentioned is banka. Uh can you break down that 93 or or 100% of the banka into Canada HSBC and other banks? 38:45 38 minutes, 45 seconds Yeah. So Canada is almost contributing 75% and HSBC another 12%. Uh the RRB 38:53 38 minutes, 53 seconds shares have gone down because of various structural changes happening in with that particular channel. So that is 39:00 39 minutes around 5%. So that uh you know uh gives you a bank of uh 92 93%. 39:09 39 minutes, 9 seconds Uh understood. Uh yeah uh that thanks thanks for your answers. 39:16 39 minutes, 16 seconds Thank you. Our next question come from the line of Vin from Nirmal Bank. Please go ahead. 39:22 39 minutes, 22 seconds Yeah. Uh thank you for taking my questions. Uh most of the questions I had were answered. I just wanted to know 39:29 39 minutes, 29 seconds uh on this uh channel mix uh uh what proportion of your uh business which is coming from camera bank is uh say 39:38 39 minutes, 38 seconds non-tier one as in say tier 2, tier three and so on. uh this is specifically for uh business from Canra Bank on HSBC. 39:48 39 minutes, 48 seconds I assume most of it will be uh from tier one cities. Is that understanding fair? 39:55 39 minutes, 55 seconds Yeah, HSBC operates in primarily in tier one cities. U Canra um just give us few minutes uh we'll just tell you the exact 40:03 40 minutes, 3 seconds uh number uh in terms of how much business has come from tier 1 and uh how much business has come from tier 2 and tier three. 40:13 40 minutes, 13 seconds So we we just give us few minutes. We'll just come back. 40:16 40 minutes, 16 seconds Sure. Yeah, that was the only question I had. Thank you. Fine. 40:29 40 minutes, 29 seconds So meanwhile, should I take the next question? 40:33 40 minutes, 33 seconds Yeah, please. Uh we can we will provide that uh information offline also. 40:37 40 minutes, 37 seconds Okay, no problem. A next question comes from the line of sugit from eyesight print rate private limited. Please go ahead. 40:45 40 minutes, 45 seconds Uh good good evening. Uh I have two questions. My first question is with premium collections growing strongly and 40:52 40 minutes, 52 seconds total income nearly uh double. What specific initiatives have been uh taken 40:59 40 minutes, 59 seconds to sustain this momentum over the next 12 to 18 months? How do you see Canada HSBC life trending its distribution 41:08 41 minutes, 8 seconds network and digital channels to capture a larger share of India's life insurance market? That's my first question. I'll have my second question after this. 41:15 41 minutes, 15 seconds Thank you. 41:16 41 minutes, 16 seconds Okay. Uh so you see persistency is an outcome of sales quality and there's a lot of focus in our company on sales quality. Uh so persistency 41:25 41 minutes, 25 seconds [clears throat] honestly speaking is a lag indicator of uh sales quality and specifically we have made extra efforts to kind of reach out to the customers 41:33 41 minutes, 33 seconds provide them additional options to pay premium regular followup with the customers and also an outcome of uh good performance on the fund performance 41:41 41 minutes, 41 seconds side. So all these things have helped us to kind of improve our persistency and I think uh some of these things are sustainable over a period of time. But 41:49 41 minutes, 49 seconds yeah after touching the current persistency which uh you have seen which I've talked about of close to about 86% on 13 months uh basis. So I think there 41:59 41 minutes, 59 seconds will be improvement but yeah over a period of time it will be more kind of gradual. Uh so we have moved from 83.4% previous year to 85.6%. 42:08 42 minutes, 8 seconds But uh we we are conscious of uh sales quality and we feel that persistency should improve uh from here but the 42:15 42 minutes, 15 seconds percentage increase could be lower. Uh so that's on the persistency front. Uh anything else you want to know on 42:22 42 minutes, 22 seconds persistency front otherwise we'll come to the digital part of it. Uh no you can you can you can proceed. 42:31 42 minutes, 31 seconds Okay fine. So and in fact if you look at our persistency across cohorts it has improved. So it is an outcome of uh 42:38 42 minutes, 38 seconds efforts being made and customers being happy with the product outcome and all that. Now talking about uh I think your question was if I've understood 42:46 42 minutes, 46 seconds correctly is that how we are going to grow business uh using digital means right am I correct correct 42:53 42 minutes, 53 seconds yeah so um actually for us uh this is something which we clearly see as an opportunity big opportunity to optimize 43:00 43 minutes the business and uh uh in fact in our um IP road shows also and also separately 43:07 43 minutes, 7 seconds in the uh last investor call also I remember we had mentioned about what we are doing using the bank's digital assets. So we see a big opportunity 43:16 43 minutes, 16 seconds there uh because Canra Bank is actually focusing a lot on uh digital assets and we clearly see an opportunity in terms 43:23 43 minutes, 23 seconds of reaching out to the customers who are otherwise not coming to the branches. So internally there's a clear strategy in terms of how we can use digital assets, 43:31 43 minutes, 31 seconds how we can use analytics, data analytics to reach out to these customers who are otherwise not visiting the branches. So we think that over a period of time this 43:38 43 minutes, 38 seconds is a big opportunity which is in front of us to leverage on digital assets both through our website as well as the digital assets of the bank. So so that's 43:46 43 minutes, 46 seconds how we're going to focus upon separately a digital business which is like uh which has policy bazar our direct 43:54 43 minutes, 54 seconds website sale uh there also we are seeing good traction our products are quite competitive and we are seeing a good amount of protection business coming through that. 44:03 44 minutes, 3 seconds Thank you. My second question is to uh regard to finance. Uh with net profit slightly lower despite strong revenue 44:10 44 minutes, 10 seconds growth, how are you approaching cost discipline and capital efficiency? Could you outline how the company plans to 44:17 44 minutes, 17 seconds balance investment in technologies uh and distribution with maintaining profitability as premium inflows scale further? Thank you. 44:29 44 minutes, 29 seconds Yeah. So see uh insurance in insurance business as you are aware that uh the 44:36 44 minutes, 36 seconds profit which is a statutory profit uh is uh you know depends on what kind of a 44:43 44 minutes, 43 seconds product you are selling and uh generally there is a strain new business strain which is there um so as the product mix 44:51 44 minutes, 51 seconds will shift from one let's say there is a product which we are able to sell uh which is having a lesser strain you'll 44:59 44 minutes, 59 seconds see a higher profits emerging during that particular period and also as our renewal book is increasing and improving there is a renewal profits which are 45:08 45 minutes, 8 seconds coming now in the books. Uh in terms of investment to technology that we will continue to maintain it. Uh uh the 45:16 45 minutes, 16 seconds answer to uh continue to maintain and continue to focus on technology and other initiative is to grow the business 45:24 45 minutes, 24 seconds generate more profit from that. uh there are some cost uh levers which we have pulled uh which is helping us uh you 45:33 45 minutes, 33 seconds know you can call it a uh you know some bit of a discretionary cost also. So those uh you know levers we are able to 45:40 45 minutes, 40 seconds pull and uh therefore we are able to maintain or reduce the cost and that will be a long-term costsaving. Uh then 45:48 45 minutes, 48 seconds again the technology what we invested couple of years back if you see our technology investment uh or uh spend uh 45:56 45 minutes, 56 seconds you know has been there for quite few years. Uh so those were uh basically to automate some of the processes and we have started seen the benefit of those 46:05 46 minutes, 5 seconds processes or those automation. So that is bringing more efficiencies and uh you know better um uh cost uh numbers for us 46:14 46 minutes, 14 seconds or operating expense numbers for us. So these are the few things which we are uh doing and we think it's uh uh these are 46:21 46 minutes, 21 seconds the s sustainable saves which we are generating and will continue to operate and invest in technology and some other 46:29 46 minutes, 29 seconds initiatives which might have some impact in uh you know very short-term period but a medium to long-term period that is 46:36 46 minutes, 36 seconds going to benefit us uh from the efficiency perspective. 46:40 46 minutes, 40 seconds Thank you for the guidance and I wish the entire team best of luck for the next quarter. Thank you. 46:48 46 minutes, 48 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question will press star and one on their touch on telephone. Our next question come from the line of press Jennifer Motila load. 46:58 46 minutes, 58 seconds Please go ahead. 47:06 47 minutes, 6 seconds P you may please proceed with the question. 47:10 47 minutes, 10 seconds Yeah. Uh uh good evening and congrats on a great set of numbers. uh just uh on HSBC 47:17 47 minutes, 17 seconds uh you know they were allowed to open new branches uh where uh have they started opening those new branches and 47:26 47 minutes, 26 seconds what are the other layers on HSBC which are not available to us and can uh start 47:34 47 minutes, 34 seconds start coming to us uh down the road right so uh they've already launched uh four new branches uh they are 47:43 47 minutes, 43 seconds operational In fact, uh some business has also started coming from these four new branches which they have opened in the last uh month or so. Uh they're also 47:52 47 minutes, 52 seconds planning to open uh another four three to four branches in the next 3 to four months. So additional business will come 47:59 47 minutes, 59 seconds from these places. Um so uh that is in terms of new branches. So um they are on track in terms of launching new 48:06 48 minutes, 6 seconds branches. Uh so that's there. Now in terms of other business opportunities uh within HSBC uh one is on the gift city 48:15 48 minutes, 15 seconds uh where we're going to uh we have a branch now we have a product which is there available operational HSBC is just waiting for their distribution license 48:22 48 minutes, 22 seconds to come from IFCA and once that starts uh that's another avenue or revenue stream uh which we feel uh in terms of 48:31 48 minutes, 31 seconds because HSBC has very good NR base so that is where we feel that that can that will also help us plus uh the bank is 48:38 48 minutes, 38 seconds also deploying additional uh relationship managers uh because in HSBC it's a pure tour banker model wherein uh 48:46 48 minutes, 46 seconds bank is deploying their relationship managers to source business so there is good focus in terms of increasing penetration within the premier segment 48:55 48 minutes, 55 seconds and there are other uh channel with sub channels within HSBC when I say sub channels in terms of they have this ultra H&I segment which is private bank 49:04 49 minutes, 4 seconds so there also they're focusing and we expect business to come from that segment. Bank is also quite aggressive now in terms of new customer acquisition through EBS employee banking solution. 49:16 49 minutes, 16 seconds So we see that these are the few avenues through which we will be able to expand our business within HSBC. 49:34 49 minutes, 34 seconds Uh sorry uh thanks for the clarification. uh just you know on the BNB VNB VNB margins uh so had this uh JC 49:44 49 minutes, 44 seconds impact not been there we would have been somewhere about 20 21% margin is that is that a fair assumption 49:52 49 minutes, 52 seconds yes that's correct right and now uh to top on to it we just started spending on agency right uh is 50:01 50 minutes, 1 second there any cost related to agency during this quarter because we had launched in October And has that put in any pressure 50:10 50 minutes, 10 seconds on margins in this quarter? And how would the expense scale up from here on uh on on that channel to kind of put pressure on margins? 50:20 50 minutes, 20 seconds So for this year perspective, this was very marginal. So this hasn't really had any major impact on our margins for this quarter. Um yeah. 50:31 50 minutes, 31 seconds Yeah. But you know how do we see the scaling up from you know Q4 onwards and then flowing on into FI27. 50:41 50 minutes, 41 seconds Yeah. So uh P um you know this agency business like An mentioned in the opening commentary that uh we will be 50:50 50 minutes, 50 seconds scaling up uh in a phased manner and uh we are very very carefully uh you know expanding this channel going to expand 50:59 50 minutes, 59 seconds this channel. Uh you are absolutely right. There will be some strain on the margin uh in the initial period. Uh and 51:06 51 minutes, 6 seconds that has been taken care and uh uh you know by couple of things which we are working upon and some of these things 51:15 51 minutes, 15 seconds have started giving us results. One is on the uh you know increase in the protection business overall which I mentioned that we expected to touch 51:24 51 minutes, 24 seconds double digit. So that's going to help us further improve the margin uh both on the individual side and on the good 51:30 51 minutes, 30 seconds side. Uh the second uh you know thing which uh is also helping us in terms of improve the margin is on the MUT side uh 51:39 51 minutes, 39 seconds which is also growing at a reasonable uh growth uh you know showing a reasonable growth and continue to have because there is a specified segment which we 51:47 51 minutes, 47 seconds have identified within HSBC and Canada uh where this product is suitable. Uh the third thing is uh with the scaling 51:55 51 minutes, 55 seconds up uh of the business and the volume uh you know some of the operating efficiencies and the lever will kick in and that will also help us in terms of 52:04 52 minutes, 4 seconds improving the margin and within unit length versus this current year uh you know next year also the riders uh 52:11 52 minutes, 11 seconds strategy is going to continue and that is also going to help us in terms of improving the margin. So these three things u along with you know managing 52:20 52 minutes, 20 seconds the cost and improving the top line will help us to improve the margin from the current level which is going to help us 52:27 52 minutes, 27 seconds uh in terms of absorbing absorbing u you know some of the strain which will come from the uh agency channel. 52:36 52 minutes, 36 seconds Yeah, the the reason I asked that question was the fact that Tarun you know when we were uh discussing these things at that time we didn't have the 52:45 52 minutes, 45 seconds GST thing coming in right and now there is an additional and you mentioned that it's a rebase of the uh VNV margin 52:53 52 minutes, 53 seconds trajectory uh so you know does that anyway kind of alter your plans for agency channel scale up or um or the 53:02 53 minutes, 2 seconds methodology in which you will scale that up uh Not exactly because what we were earlier 53:10 53 minutes, 10 seconds you know when we were talking about these things we were not expecting that individual protection is going to increase uh and 53:19 53 minutes, 19 seconds help us in terms of improving it overall protection business we mentioned and that was mainly coming from the group trade life. Now the similar and uh you 53:26 53 minutes, 26 seconds know significant or equal contribution is also uh contributed by individual protection and we have a very very 53:34 53 minutes, 34 seconds competitive product giving us good margin and also there is a good uptake which we have seen in last uh you know 53:42 53 minutes, 42 seconds uh 3 months period. So that is expected to continue that will give us a further uh you know uplift in the margin which 53:49 53 minutes, 49 seconds will uh help us in terms of absorbing some of the GST cost. So uh at this point in time uh yes there is a rebase 53:58 53 minutes, 58 seconds on the BNB margin but uh if you look at from the medium to long-term perspective we are expected to continue on that trajectory which uh we we discussed earlier. 54:08 54 minutes, 8 seconds Got that got that yeah that's it from my side. Thank you so much. 54:14 54 minutes, 14 seconds Thank you. [clears throat] As there are no further question from the participant I would like to hand the conference over to the management for the closing comments. Thank you and over to you sir. 54:24 54 minutes, 24 seconds Great. So thank you very much uh for participation in this uh call and uh if there are any further questions then Amit from our investor relations is 54:32 54 minutes, 32 seconds available to answer queries. So thank you very much once again. Thank you. 54:36 54 minutes, 36 seconds Thank you sir. On behalf of Mosila Los Financial Service Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.