Q1 25/26

Jul 17, 2025

Good evening ladies and gentlemen, and welcome to 360 ONE WAM Earnings Call for Q1FY26. As a reminder, all participant lines will be in listen-only mode. In case you wish to ask questions or require assistance during the conference, kindly signal the host by tapping on the raise hand icon. Please note this conference is being recorded. Today we have with us Mr. Karan Bhagat. Bhagat, Managing Director and CEO, Mr. Yatin Shah, CEO of the Wealth business, Mr. Anshuman Maheshwary, COO, and Mr. Sanjay Wadhwa, CFO. I now hand it over to Mr. Sanjay Wadhwa to take this conference ahead. Thank you. Thank you, Anil, and a very good. evening to all the participants. Starting with the macros, Indian equities after facing some sharp volatilities in the last two quarters witnessed a rebound in Q1FY26. While geopolitical events could influence broader markets in the near term, structurally we continue to remain bullish about India's long term growth story which will act as a tailwind for India's wealth and asset management sector. Before I get into the business and financial numbers, just wanted to highlight that the consolidated financials for the quarter include full quarter financials of ET Money and post acquisition financials of just over a month for BNK. Our total ARR AUM increased to INR 2,87,317 crore, up 30% year on year. This growth was supported by strong net flows at INR 20,950 crore. The flows also include ARR net flows of INR 1,866 crore as a result of the acquisition of BNK Securities. The growth in our client base continued to be very healthy. Presently we have 4,200 clients with a total AUM of INR 10 crore plus who account for 95% of wealth AUM excluding custody. This includes approximately 700 corporate clients that we have onboarded as part of the BNK transaction. Our ARR revenue for the quarter grew 35.9% year on year at INR 511 crore led by strong growth in assets across business segments. Our ARR revenue as a percentage of total revenue from operations stood at 77%. Retention of ARR AUM also remains strong at 79 basis points and 70 basis points ex off carry. Total revenue stood at INR 725 crore for Q1FY26 driven by higher ARR revenue and other income. Total costs are up 32.7% year on year to INR 351 crore in Q1FY26. The cost-to-income ratio stands at 48.4% as compared to 50.7% in Q4FY25. As explained earlier, the cost for the. Quarter also include full quarter cost of. ET Money and post acquisition cost of BNK. We expect gradual improvement in this metric over the coming quarters as we scale up and drive synergies from new business initiatives and teams. We are very happy to report that the company recorded its highest ever quarterly PAT at INR 287 crore, an increase of 18% year on year. The tangible ROE is at 19.6% in Q1 FY26. This ratio is expected to improve in the coming quarters as additional capital deployed in our lending and alternate businesses in FY25 begin to reflect in earnings. With that I would like to hand over to Anshuman to cover key business and strategic highlights. Thanks, Sanjay, and good evening everyone. Taking Sanjay's comments on the overall business numbers ahead, I would like to share updates on our key strategic initiatives. As you are aware, in recent quarters we undertook inorganic measures to strengthen our core business model as well as create future optionality. These initiatives are expected to enhance our core tenets and help us benefit from the significant wealth and asset market opportunity in India. Firstly, on BNK Securities, we are happy to announce that the deal has been successfully consummated and all requisite approvals were received on May 27, 2025. Post-merger integration of people and processes has already begun. Mr. Sahil Murarka, Promoter and Managing Director of BNK Securities, has joined the 360 ONE WAM leadership and will continue to spearhead the business along with Mr. Sanjeev Mata and the high-caliber team at BNK Securities. We are also excited as Sahil joins the 360 ONE WAM board. With BNK Securities, we are now better positioned to build out a robust, sustainable broking and transactional platform within our wealth management franchise. Secondly, our conviction on the HNI business continues to grow with over 30 RMS, 250 clients, and INR 1,500 crores of AUM tracking at over 90 bps of retention. We are now well poised to drive the scaling up and see that happen over the next few quarters. While 360 ONE WAM's broader platform and core client-centric wealth management ethos will continue to effectively support the growth of the HNI business, we are also excited to take numerous technology-related developments done for this segment to our UHNI clients as well as our core senior bankers. Thirdly, on our strategic collaboration with UBS, we are happy to share that we have received all regulatory approvals to complete the transaction. As shared earlier, the strategic collaboration has three interrelated components: business collaboration across geographies and business segments, UBS stake in 360 ONE WAM, and integration of UBS India's wealth management business with 360 ONE WAM as we speak. Supported by the top management from both firms, we are working towards a smooth migration and integration while creating expressways globally for a strong international collaboration. This collaboration brings together two powerhouses in the space of wealth management to create a platform that is truly without parallel in the country. This exclusivity is guided not just by the business opportunity but also by shared beliefs in values, ambition, and a client-first philosophy. UBS's global investment expertise, research, and access will improve our ability to serve the cross-border needs of our clients as well as enhance our wealth management proposition further. Fourthly, on ET Money, with the firm becoming part of 360 ONE WAM, we have jointly laid out an exciting strategic agenda to go deep into the mass affluent segment and drive growth and higher monetization of the rapidly expanding client base. We will continue to share more on ET Money as we go through the next few quarters. On the asset management front, the continued focus on deepening our channel presence in the domestic market, specifically through MFTs, is delivering positive results. The pipeline of new fund launches across asset classes as well as the new international institutional mandate pipeline remains strong. Global institutions continue to be interested in exploring new investment strategies with us, driven by the India growth story and our ability to innovate and co-create strategies with them. Such tailwinds, supported by 360 ONE WAM's strong track record in managing prestigious institutional clients, give us confidence towards the next phase of growth for the business. Also, we plan to extend our alternate investment funds strategies to a larger set of client base as well as institutional clients across India as well as globally in the coming quarters. I think apart from the core business areas, we continue to take exceptional pride in the external recognition received by our wealth and asset management businesses. We continue to be very proud of the awards received in the last quarter and over the last few years. We are also very proud to be recognized as a Great Place to Work 2025. I would take this opportunity to thank all our partners and stakeholders who have restored this trust and confidence in. Us through our journey. With that, I'd like to hand it over to Karan and Yatin for Q and A. Thank you, Anshuman. To ask your question, we request you to kindly signal on the raise hand icon. First in line, we have Mohit Mangal. Kindly unmute and ask your question. Mohit, can you hear us? I invite Lalit Dio. Come out. Yes. Yeah, can I go ahead? Yeah, go ahead. Yeah. My first question is on net flows. You have mentioned in your presentation that about INR 18,000 crore is coming from BNK Securities. I just wanted to understand, is it sitting only in the mutual fund distribution business number. Meaning? Sorry, just to kind of clarify. I think the INR 18,000 crore of net. Flows is relevant to the mutual funds. Business and the rest of it. The TBR, which is the custody stocks. So on and so forth is. Not referred into this category. This is only for the ARR, only for the ARR. Okay. Basically, how do we see the net flows for the entire financial year 2026? I mean, you have given guidance of INR 130,000 to 135,000 crore. Do we stick to that? No, I think we continue to be. Focused on our strategy of getting 12 to 15% of our net opening AUM as net flows for the year. We started off the year at around INR 165,000, INR 170,000 crores of opening ARR AUM. Around 12 to 15% of that is what we would focus on. Getting as net flows. The quarter one has been quite robust in terms of flows. I think we've seen the asset management business do around about INR 1,000 crore of net flows. The wealth management business also had good flows. It was a little bit tempered with the INR 1,700 crores of flows because we had a little bit of net outflows also coming from the departure of two of our teams. That kind of impacted the flows. Broadly by around about 3. A half to INR 4,000 crore number for the quarter. This is the second quarter, I think, since the departure of the teams. We expect between the two teams. Pointed out earlier, around about 5% to 6% of the AUM to be lost. INR 4,000 crores of the AUM, 3.5. 4,000 crore of net AUM is the. Outflow, and we've got another INR 1.7 billion of net flow. Overall, with the induction of new. Teams, you had a good quarter of INR 6,000 crore of net flows. On the wealth management side, sounds a little tempered for last quarter of being around INR 1,700 crore for that reason. In addition, asset management has seen around about INR 1,000 crore and plus the. BNK, that broadly kind of sums up. The total of the net flow number. Understood. Second question from ET Money. We have seen that this kind of business is kind of bleeding, but I suppose that we have got good plans for this in 2026 as well as 2027. It will be net positive for us in the bottom line as well. I think we made a lot of progress on ET Money. I mean, when we took on the. Business, it was kind of having a. Broad loss of around INR 5 crore. A quarter, INR 4.5 to 5 crore a quarter. We've got it down to nearly INR 6 crore, INR 5 crore a month. We got it down so now around. About INR 50 to 60 crore annually. Now it's down to around about INR 6 crore. To INR 7 crore a quarter. I think over the last eight. To nine months, the business has made significant progress. I think we've also decided and charted. out a very clear growth map and strategy, which we are fairly confident about. Business from a moat perspective continues. To have three phenomenal modes, having technology to execute at scale B. Having focused only on. Financial advisory and. Wealth management as opposed to going down the brokerage path, and thirdly, continues to be very, very rich in content and SIPs. I think how do we kind. To monetize that is something which we've been working on over the last six months, and simultaneously we've been able to. Kind of get the burn down from. Around about INR 5,560 crore a year too. Around about INR 25 crore. Understood. Lastly, on the yields, I think we had a very good quarter in terms of yields as well. I believe that yield will go down by one or two basis points, maybe in the next two to three years. I think that is a fair assumption. I think yield will go down. or 3 basis points. I'm quite confident like I've said. Earlier about the headline yields being maintained. In different line items. I think the mix of businesses grow slightly differently. I think distribution will continue at. That 75, 80, 85 basis points. Advisory at that ballpark range of 30, 35 basis points, and discretionary broadly at. 40, 45 and NBFC at that brought 350 to 400 basis points. The contribution of each of these lines on a relative basis may change a bit. Advisory and discretionary might become slightly more. In percentage terms than distribution, and therefore. Effectively, that will cause a compression of around 2 to 3 basis points on the yield. While the headline yield numbers might not change dramatically, I think overall on the wealth management arrangement we might see. A little bit of compression of 2%. To 3 basis points. The mix of business on the asset management side, so the only place I see a little bit of reduction in the headline yield is on the asset. Management side on the listed piece. I think we built a fairly robust business of nearly INR 50,000 crore of AUM, and we've been able to maintain nearly 60 to 62 basis points of blended yield. I think that's a place where, as we incrementally add AUM relative to the mark to market, I— Mean the yields might come down. Three to four basis points. On the alternate side, continue. I think the yields will continue to. Be in that ballpark range of 85. 90 basis points to 95 basis points. Including the carry income, overall I think on the asset management side, again, not a big compression. Yield, again 2 or 3 basis points. More coming out of the listed side than the alternate side. It's a function of a little bit of the mix of the business. Obviously, if we go a little bit. Faster on the alternate side, there won't. Be any reduction in yields. On the other side, if you go faster on the listed side, there may. be a little bit of reduction on the yields. If I just look at the six, seven main pillars of business, I don't see a reduction on the headline yields, but a mix of the business will result in a reduction of 2 to 3 basis points. Understood, sir. My last question is in terms of attrition. I think you have mentioned very, very categorically that we have lost some bit of AUM, but I think we have kind of hired from the competition as well. The net impact should be kind of low, right? In the, over the next two to three quarters, we would see some kind of a bump up in the AUM growth by hiring more from the competition. Yeah, I think I. Won't say there's no impact. There's always impact of change. I think that we have to recognize. You know, end of the day. We are in the people business, and people are our biggest assets. Having said that, obviously a little bit. Change in attrition is inevitable. As a firm for the last 15. Years we've been able to kind of. Really serve as a phenomenal platform for. Our people to grow. I think we continue to work. Tirelessly 24/7 to ensure that we provide the best platform for all our. Employees to take to clients. While we are able to match ambitions and aspirations of most of our. People, sometimes some people have to kind of move on, and while we kind of respect that. We've been able to retain more than 90-95% of our entire senior sales force, resulting in fairly solid AUM growth as well as a very low attrition number. It's the first time over the last. One year we've seen some attrition. That's obviously led to, as I said. Earlier on, about a 4% to 6%. Potential loss in AUM. Having said that, it's obviously opened up our eyes to all the talent which has kind of got built up in. The industry over the last 10, 15, 20 years. I think there's a lot of good talent out there, and we really worked. Over the last six odd months, to be able to attract the best talent, and we've been very, very successful. We spend a lot of time in meeting people. A lot of at least three. Four very large teams have already joined us and we are at the cusp of potentially seeing three, four more large teams joining us over the next three to six months. It's something which kind of little bit continues here and there. Left to choice, I wouldn't want a single person to go and if possible we could recruit the entire wealth management industry. What obviously can't happen, and broadly around that, I think I wouldn't say we. Would want to lose anybody, but we are in a comfortable position in terms of a little bit of plus and minus. It's a stop and a go. That has its own kind of implications. Eventually, as you rightly pointed out, it becomes a bit of a rolling curve and we should be able to. Add much, much more AUM than we potentially lose out of attrition in the short term. Understood. Thanks, and wish you all the best. Thank you. Thank you. I request you to kindly restrict yourself to two questions each. Next in line we have Nitesh Jain Nadesh. Kindly unmute yourself and ask your question. Hi, thanks for the opportunity. I have two, three questions actually. The first question is net flow, net. Outflow that we are seeing of 2. To INR 3,000 to 4,000 crores. When do you think it will stabilize? you neutralize in coming over next 2, 3/4? Maybe if you can ask all three questions it will make it. Easier for me to answer. Maybe speeding up things a bit. There is also an increase in yields on the lending book and alternate investment funds in this quarter. there any particular reason? Could you give some color on the transactional based revenue? For the quarter in terms of breakup. In direct equity, unlisted BNK Securities and debt. That would be useful. Thank you. No sir, I think to start off. I think obviously the impact of AUM moving out is slightly front ended. I think that's, I wouldn't say it's typically, I would kind of split it. Between two to three quarters. I think a couple of quarters is gone. In our own assessment, we are towards the second half of the last quarter of net outflows from a perspective. Of being able to kind of predict it to perfection. Obviously, very difficult, but I think it's fair to say that large majority of it is already done in terms of. The quality of the transaction income, and then I'll come to the yields, the quality of the transaction income. Obviously. I think we're working very hard to ensure that our transaction income is as. Close to being as close to being repetitive as possible as opposed to being kind of cyclical, as we work hard to grow. Our transaction income from around about INR 550. 600 crore to around about INR 1,000 crore over the next two, three years. I think in that respect, building a very strong research-based equity. Brokerage platform for both institutional corporates, family. Offices, high net resources is very important. I think today that number for us. If I kind of add both BNK. Together with the ultra high net worth brokerage platform we have, is around about INR 270 crore, INR 280 crore. I think we hope to build that and grow that by at. least 20, 25% every year for the next three, four years. In addition, obviously we've got the other asset classes, including fixed income, debt, bonds. Unlisted equities, a little bit of real estate, insurance, which kind of gives us the ability to add the remaining 3. 400 crore of transaction income. Overall, I think while I think transaction income has been super healthy over. The last three, four years, I think. Our ability to diversify across asset classes and be able to toggle across multiple. Client segments will allow us to kind of grow that in a responsible way. We continue to work very hard. To ensure that our transaction income can. Be on a steady state basis around about the 254 number on a quarter-on-quarter basis over the next two, three years. While we build that, we are. Also, kind of pretty conscious of the fact that we would like to maintain our transaction brokerage income at around about. 20% of our brokerage income. I think that's the broad principle. On the transaction brokerage side, in terms of the increase on the yields of. The AIF and lending, obviously the lending. Has a little bit of an impact. Of the increase on yields on account. Of the capital raised last quarter, that obviously kind of will come back. From a compression of yield perspective, as the book kind of builds up. On the alternate investment funds side, yields a bit. Kind of fairly steady. Nothing super phenomenal, just a mix of assets. I think a little bit more. A little bit more increase in yields. Largely on account of the larger amount. Of commitments coming in on the AUM business on the alternate side. I think the drawdowns have kind of started coming in, and that's kind of increased the yield a little bit. Sure. Just one follow up on AUM. What is the revenue from NSC, etc. In this quarter NFC transaction? We don't really disclose revenue on a. Transaction by transaction basis, but there's nothing lumpy from an NSC or any of these. There's nothing lumpy in from a TBR perspective. I think there's no single transaction which contributes more than 10% to 12% of our TBR level. Sure. Thank you. That's it for myself. Thank you. Next in line we have Praise J. Kindly unmute yourself. Hi Karan, how are you? I'm good. How are you all? Just in this outflow on the lending book, what was the reason for that? Nothing, nothing specific. Honestly, I think lending book will come back this quarter. We had a couple of actually a couple of large loans against a few collectors got refinanced at slightly lower rate. I think that's about it, and the lending book is steady. I think we have our own space in it, and very quickly, I think it'll come back to its own basis. On the retention on the lending. Book, do you think we would be? Back to something like 5.3-odd levels. We used to kind of be at 4.7, 4.8 to 5ish. We've also kind of come off of a cycle where we were borrowing a little bit more expensive. I think that's also come off for us a bit. We are able to borrow at substantially. Better rates now, and I think we. Also have kind of ended up raising. A bit of capital, I think overall feel comfortable with. That number in the shorter end, obviously. A little bit of. Compression, but I think may not be 5.3% but definitely around that 4.8% to 5% ballpark. Okay, last question, BNK and UBS numbers would start getting reflected from 2Q onwards. BMP is reflected for one month. I think 35 days. That will start getting reflected from the second quarter fully, UBS numbers. think we've kind of got all the approvals in over the last two, three days. I think there are certain other CPs to complete the transaction, which in natural course will take another month or so. I think effectively UBS, not maybe this quarter but the next quarter. BNK fully in this quarter. Would BNK entirely be in transaction in this quarter, or is there anything else? Also, there are two elements of corporate treasury. Yeah, corporate treasury. Corporate treasury also kind of has. Again, small two elements. It has an element of ARR revenue which is on the mutual fund side. Right. It has a very small amount of bond brokerage also. I think BNK on the ARR. Side out of its total revenue would. Be adding around about 20, 25% of ARR revenue. Office total. Okay, got it. Thank you so much. We wish you all the best. Thank you. Next in line we have Sanket Goda. Sanket, kindly unmute and ask your question. Thank you for the opportunity. You said that INR 1,750 crore is the actual flow happened in the current quarter and you said 12 to 15%. Which translates into INR 20,000 to 25,000 crores. For the full year, when you said INR 20,000 to 25,000 crore, it is like to like INR 17,500, right? That's the way I need to. See Wealth ARR net flows to play. Out in the current year. As I said earlier, I think INR 1,65,000, INR 1,70,000 to 12 to 15% would be INR 20,000 to INR 25,000 crores. On the wealth management side, we opened the year at around about INR 75,000 to INR 80,000 crores on the asset management side. Take another 12 to 15% of. That which is effectively INR 9,000 to 12,000 crores. You add the two, you effectively. End up at around about INR 27,000 28,000 crores to INR 435,000 crores. That's the sum total of the ARR AUM we aim to target on. The wealth management side. Therefore, we need around about INR 5,000 to 5,500 crore on a quarterly basis. On a run rate basis, net flows. I think as I was explaining earlier. I think we did on a normal course basis around INR 6,000 crore in net flows this quarter. Six, six and a half thousand. It's kind of got partially set off. With gross net outflows of, I don't want to call it exceptional, but INR 3.5-4,000 crores of net. Outflows with two teams kind of rolling out. I think that stays max for another quarter. Hopefully, quarter two, quarter three, quarter four, we do enough to be. Able to make out that make up the INR 78,000 crores of incremental net outflows. Which happened thanks to the hiring we've done. I think that's really where it is. I think if we started out aiming to collect INR 20,000, INR 25,000 crores on the wealth management side, like I'm saying, we have to do INR 7,000, INR 8,000 crores extra for the year. We have to do INR 27,000, INR 28,000. To INR 35,000 to account for the INR 8,000. crores of net outflows. Okay, perfect. This explains. The other one which I wanted to check is that out of that INR 150 crore of transaction income, what you reported in the current quarter, how much would be BNK? That's one thing. Also, in the employee cost of INR 180 odd crore, how much would be BNK related employee cost? Just to understand the color. We are not reporting entity wise, we are reporting segment wise. Okay. I think BNK largely gets reflected. In the corporate and institutional bucket, which. Is effectively around about INR 24 crore for the previous quarter. Okay. Okay, that's it for myself. Thank you. Thank you very much. INR 24 crore is 35 days. Yeah. Next in line we have Abhijit Sakari. Abhijit, kindly unmute and ask your question. Hey, I hope you can hear me. Hi Abhijit. I can hear you. Yes. Okay, first question is when I look at the TL team, the TL base that we have, it seems like there's been a bit of a juniorization over the past 12 to 18 months. How do you think about that in terms of ability to gather large mandates? I'm guessing some of it is because of the exits that we've seen. The five year plus vintage data that we disclose, that's come off a little bit over the 12 months. There's obviously a very severe intensity to go for good quality talent. Yeah, which does change in six. To eight months with the recruitment. It is not really kind of a. Permanent change or something. Obviously, with the loss of 810 bankers, it is showing up a little bit. As soon as we do the recruitment and everybody comes in, that will change automatically. They got it. Just in terms of the AUM that moves out with these exits, is it fair to say that the distribution assets have a higher tendency to move out compared to the advisory, or there's really nothing across the segments when large teams move out? No, I think it's fair to say. Distribution assets will have a slightly more tendency to move out, followed by advisory and discretionary being the least, because obviously the interface of the firm is different. In all the three mandates. Having said that, I think broadly speaking. That number is in my mind any number between 5% to 6%. I would be really surprised if it's a number dramatically higher than that. After that, obviously, the challenge, the battle. The opportunity is really to engage with. The client, and then kind of there's business as usual. I think from an AUM perspective, I still don't have data rich enough. To say that on distribution it is seven and on advisory it is four. I think logically speaking you're right. I think distribution assets are more likely to kind of get addition faster. I think broadly speaking, if we. Can, if the numbers stay around that. 5 to 6% abroad benchmark, I think that's where that would be. That would be healthy. Got it. That's all. Thank you so much. Thank you, Abhijit. Thank you. Next in line we have Siddharth. Siddharth, kindly unmute and ask your question. Hi. Thanks. Thanks for the opportunity. Two questions from my side. First up, is it possible given this whole attrition piece for you to share? The gross flows, both on the wealth. On the asset management side for the last five quarters, the second one was to understand what was the institutional mandate addition. Net. Of the addition that may have come from BNK specifically on that, if you could also additionally give an outlook on the asset management side on credit and private equity flows which tend to be relatively higher yield. The last is an accounting question. Have we moved from accrual accounting on carry income? Because there seems to be a quarter on quarter variance. Last quarter there was that carry income. Have we moved back from accrual or is that due to a difference in performance resulting in lower carry? I'll start off with the second one first. There's no real change in the accounting of carry. It still continues to be on the same method. It's not a pure accrual method. It's slightly more conservative than that. The way we work on carries, we estimate the carry basis, the NAV, and then once the funds are only 18. Months away from maturity, that's the first. Time you start recognizing carry. We kind of distribute it over the six quarters, reaching towards the conclusion of the fund. Typically, if a fund is ending towards the closure, that's really when you'll. See the carry fluctuate a bit. Outside of that, there's really no. I wouldn't call it. It's like on accrual. It's a conservative method of kind of computing carry. It becomes calculable for carry only once in. Once in, once. The scheme is 18 months away. Specific to your question or carry from. The last quarter to this quarter. I think we have a couple of institutional mandates where we charge carry once. A year at the end of the year. There was a $5.40 million. crore rupees carry which we had kind of given out as a footnote last quarter, which was booked out as, which. Were booked out as carry in the previous year's performance fee in the last quarter. That's what is causing the variation. Outside of that, normal carry calculation on our alternates is more or less in a kind of a straight line unless and until there's an entry of. A big fund into the 18-month kind of category. On your first question, in terms of. Net flows itself, I think, like I said broadly, I think very, very broadly, without going into specific gross flow, net flow numbers for every quarter, generally speaking, in every quarter there are outflows around anywhere from INR 800 crore to INR 1,000 crore. There will be net flows of around INR 4,500 crore to INR 5,000 crore. That would be target, sorry, gross flows. Of INR 4.5 billion to INR 5.0 billion and leading to net flows of INR 4.0 billion to INR 5.0 billion. That's the broad, broad number. I think as I pointed out in. The last two quarters, I think the Net flows have been slightly better instead. Of INR 4,500-5,000. Gross flows have been slightly better instead of INR 4,500-5,000. Have been closer to the 6,004 number. The net outflows, the gross outflows have. Been slightly higher. Instead of being 1,000, 1,500 have been 3.5. 4,000, which resulted in the net flows of INR 1,500-2,000. Overall, I think broadly, if you want to kind of reach the gross. Flows number on a steady state basis at around about INR 1,500 crore for net. Outflows for the last two quarters. That net outflow instead of being INR 1,500 million is INR 3,500–4,000 million. That's the broad color on the floor number as far as the asset management goes. No special mention of any flow specific. To the last quarter's business as usual. I think we closed out a couple of new fund launches last quarter, especially we closed out the healthcare fund of INR 1,000 odd crores. Our pre IPO fund which I got. Kind of closed out two quarters back at INR 4.5-5 billion. I think that on that, we charge fee on a drawdown basis. Effectively, the AUM keeps increasing as. We, as we kind of call for. Capital, and we continue to be focused on trying to do one strategy-based. Alternate scheme pretty much every quarter. I think as time goes by, both on the private equity side as. As on the listed side as well as on the real assets and. The pre-IPO side, we'll potentially see a fund close every quarter and maybe four or five funds through the year. Nothing specific on the ARR for the alternates or the listed equity side. For the last quarter. I think business as usual. We'll potentially reach our target of. 8,000 to 10,000 crores. We need four or five new fund launches and potentially calling for the drawdown of. Refunds which you already raised will lead us to the INR 8,000 to 10,000 crore number. Thank you. Thank you, thank you. Just one part that got missed on the institutional mandates. Was there any addition that came in from the institutional mandates that are there with BNK, or are these flows completely organic? On the asset management side? We are completely organic. Okay, thank you. Thanks Karan. Thank you. May I remind you, in case you wish to ask your questions, please click on the raise hand icon. Next in line we have Dipanjan Ghosh. Dipanjan, kindly unmute yourself and ask your question. Hi Karan. Good evening. Hi. Hi. How are you? All good. Just a few questions. First, in the presentation, the corporate and institutional segment, if I presume that majority of it is BNK Securities, it seems that the run rate of, or maybe 35 days is like a month. Let's say the monthly run rate, if I would analyze it, it seems that BNK Securities is broadly flattish to maybe a little bit better than last year run rate both in terms of revenues and maybe PBT. Firstly, is that a fair assumption? Secondly, going into the year, probably we were expecting BNK Securities' revenue, given a high base, probably to be a little bit tapered down. How are you looking into it? That's the first question. Second, during the start of the call you mentioned that the institutional mandate pipeline is holding up. Out of the flow expectation that you've mentioned for the year, what sort of quantum are you building from this institutional mandate? Last question, in terms of the new hiring that you are doing on the team leadership side. You have on one hand seen attrition of flows from your clientele because of RMC organization. On the flip side, you are doing a significant amount of lateral hiring. What sort of flows do you expect because of this lateral hiring and what can be the associated cost that goes into the P&L because of this? Okay, sorry, I'm just looking at. Yeah, I think BNK is not. Flattish, it's actually done slightly better. I think over the last year. Question, I think it was around about. 16, 17 crores a month which we had disclosed last quarter, leading to around INR 204, 205 crores. I think for the current quarter, it's. Around about, give or take, INR 60 crore, INR 70 crore a month, leading to INR 200 crore. I think the current quarter, it's around about closer to the INR 21 crore kind of number. 21, yeah, 21 odd crores for the month. Effectively, it's closer to the INR 250 to 260 crore number. Broadly, seems like all things being equal, a 15 to 20% higher number. Than last year, which effectively from a. PBT perspective will translate to a 10%. To 14% higher PVD, all things being equal, for the next four quarters. I think BNK is around 20% to 25%. Growth. Coming to your question on the institutional mandate, we've not kind of, we really. Don't end up kind of building in something specific for net flows number. I think we have to get to the net flow number whether we get an institutional mandate or not. I think we are always in touch on the institutional mandate side. Typically, cycle for institutional. Mandates are fairly long. We've got five of them as we speak today, and it would not be fair to expect at least one of. Them coming through the course of the. Financial year on the team. I think, yeah, obviously it adds to. The cost, but I think our existing. team was also extremely, extremely well compensated. I think it's really in that. Sense for the current year at least, it's a difference. It's not really the sum total of both. I think the cost, pretty much like earlier, is part of the entire cycle. I don't expect it to disturb our operations. Cost-to-income ratios in any material. Way, unless we do decide to hire. More people for growth. I think on a steady state basis, just the churn of the. Team members itself doesn't lead to a cost addition. Just one follow up question, Karan. I mean the cost for the global offshore team, is there anything during this quarter or is it completely. No, it's there in the last quarter. It won't be there for this quarter. Got it. Thank you. For the last quarter, eight to nine. Thank you. 1450. Sorry. Last quarter around what? 1.415 billion of cost will be there. From the global team, which won't be there in this quarter. Okay, sure. Thank you, Karan, and the team, and all the best. Thank you. Next in line we have Lalit Dio. Lalit Dio, kindly unmute yourself. Lalit, kindly unmute yourself and ask your question. Siddharth, in case you wish to ask a question, kindly unmute yourself and ask your question. Hi, thanks for the follow-up opportunity. Just wanted to understand on the lending book, you mentioned that there was a specific reason for that sharp fall. How should we look at that going forward? Also, just a clarification on the overall net flows that we are looking at. Right. Including the INR 26,000 crore that we would expect from the UBS acquisition and the INR 18,000 crore that came from BNK Securities. Broadly, INR 70,000 to 80,000 crore addition in the ARR AUM. Is that a fair way to look at it? No, I think the UBS ARR AUM, substantially lower, is not $26,000. The entire AUM of UBS is $26,000. Crores, not the ARR AUM. The INR 18,000 crores of BNK is fine. We will definitely aim to hit our targets. INR 35,000 crore number. I think all put together, INR 55,000 crore and UBS will be a sub INR 10,000 crore number purely in terms of AUM. I think that's the math. I think all three put together. Will be between the INR 60,000 to 65,000 crores. Sure. If you could clarify on the lending book, that fall of 1,000. Nothing. Out of the ordinary of the lending book, I think it moved up sharply the last quarter. Also Q3 and Q4 there. Were two short term loans which kind of got repaid. There's nothing else really from a lending book perspective. There are low loans of Q3, Q4 which kind of got repaid. Our current quarter has seen a good uptick back in the lending book. Nothing really specific on the lending book itself. Got it. One more on the HNI. This quarter we've seen net flows of roughly around INR 1,500 crore, INR 1,100 crore of which seem to come from HNI. Is it fair to say that the ultra HNI book was 3, pretty much all outflows being replaced by gross flows, and the entire net flow is or large part of the net flow is coming from the HNI book? Out of the INR 1.1 billion of AUM. HNI, round about 500 is coming. Yeah, INR 500 million is organic and INR 500 million is from BNK Securities. Got it, thank you. If you take out the INR 500 crore of net flows from HNI, the INR 1,700 crore will become INR 1,200 crore. Got it. Got it. Thank you. In case there are any more questions, you could click on the raise hand icon. Dipanjan, you have a question. Hey. Hi Karan. Just one follow up. You know now that the UBS kind of tie up is broadly kind of kick in in the next maybe quarter or two, you know, just wanted to understand the thought process, you know, when you have worked with the UBS team in terms of identifying the potential customer cohort that you can tap into or you know, in terms of how the ecosystem will work or you know, some sort of color that you know, for us or investors or sell side, you know, for us to understand what sort of an addressable market, you know, that in your mind you think could be a potential, you know, AUM attrition, you know, possible that from this cohort, let's say over the next three, five years out there any sort of broader color on that. I think to be honest, we've. Not gone into defining exact specific numbers. I think we are clear on the five points of collaboration, and I think. That's really where we would like to keep it. I think UBS is also a very, very large engine, a lot of areas to work for and understand. We've also got our own style and working operations, and I think. First is for the transaction to close. We get into the collaboration agreements. Which itself will take, let's say, a. A couple of months to get done. I'm quite confident directionally the four or five things will play out very well. I think it's too early to define. A quantum, but I'll kind of re-emphasize the four or five collaboration points. I think the first collaboration point obviously is our ability to kind of feed into the UBS global products for the resident Indian LLRs and GIFT City money. Second, obviously, is for our asset management. Products to come out of the UBS Wealth Management platform and their. Ability to offer it to all their wealth managers to kind of feed into. Our products in India. Obviously, that itself also needs to go through the same product approval committees. It would need for it to go through our side. Thirdly, obviously, is your clients who've kind of Indian clients who've kind of moved out or have built a very large LRS portfolio over a period of time. Effectively kind of referring them to UBS. For the global wealth management relationship. Fourth obviously is UBS kind of. Referring us to. Global NRIs who have an Indian resident NRO, NRE portfolio, which. Is still in India. I think these four are the. Main pillars of collaboration. Fifth, obviously our ability to kind of draw benefit out of how do learnings from each other on way of. Doing business, how do the large global. Ultra high net worth get serviced. On and so forth. I think the first four obviously. Will get quantified, will lead to a certain number. Is it a certain target in our mind today? I think the answer is no. I think our first target really is to get all our products approved on each other's platforms, build the right alignment of interest, and show it to relationship managers of both the platforms. Once that is done, I think honestly the India story as well as the ability of people from. India in a limited way to diversify. Their assets both existed. is no reason to believe why we can't see a certain percentage of the. India, you have moved into Gift City. Similarly, a certain percentage of the. Entire global AUM. UBS wealth side moving to India as a country. Too early to decide what the AUM % might be. Could be 1%, 2%, or maybe potentially. 4 or 5% from here, but that's. Something which time will tell, and obviously a lot of it will be in the execution of it. Got it. Thanks for the elaborate clarification. Thank you. Thank you. Thank you. That's all we have time for this evening. Thank you for joining us on this conference call. Have a nice evening. Thank you, everybody. Thank you.