00:00Debeshish I would like to start with you if I can after this successful IPO can
00:04you talk to us a little bit about what your key priorities are now over the
00:08next few years or so you're going to expand the products suites a bigger
00:12distribution network new products what do you have in mind
00:17thank you thank you all the investors in the globe and India for supporting our
00:23IPO in the last scale so parodies for the next three to five years will be four
00:30categories or four ways one first part is democratizing the investments and
00:36investment the climate in the whole country in India we have one 1.4
00:41billion people but hardly 10 percent are yet into investment platforms in mutual
00:47funds so our aim will be to bring others from the cities from the towns from the
00:52tier two tier three cities to our fold to make investment as quick as easy as
00:59possible for these citizens again as we cover a large number of investors will
01:06also focus on digital delivery so digital way of serving investing and giving them
01:12advices bought AI based solutions these will be our priorities for the coming
01:17years and third is giving value to investor as you know that investment is
01:22subject to value creation so our aim will be to add value for all the investors
01:27all my shareholders in the coming years and finally we're also going to a new
01:31areas like PMS AI for the NITS international we have already a subsidiary in
01:37the gift city that is our SBI funds in the last limited through this arm will try to
01:42expand our base international business thank you
01:47Srinivas I'd like to ask you as well I mean you know this listing makes you the
01:51number two listed asset manager now in India behind the market leader ICICI
01:56Prudential your competitor do you feel what the Debasis has outlined there is
02:00great going to be enough to make you the number one fund manager what else needs to be done
02:09thank you for having us Paul it's a good question but end of the day it's more than the market
02:14cap
02:14we are already a market leader we are about 15.6 percent market share makes us the largest asset
02:19manager in the country today listing is a process of unlocking this value and we think the value will
02:24unfold in coming days and we are not here to where would the market cap be for SBI funds management
02:28eventually the market will rate us for the business that we have created we build a fantastic
02:33franchisee not just we have more in terms of ability to raise assets we've already proven that
02:39we are a very large institutional player in India today managing very large pools of money for
02:44portfolio management services large investors and of course we have massive plans like Mr.
02:48Dishis talked about in terms of growing the business so I think the market will you know value
02:54us accordingly and we feel that as a market leader in asset management we should be fairly valued in
02:59coming days and Srinivas we've also seen retail participation in these mutual funds rising very
03:07sharply in recent years can you talk to us about some of the trends that you're noticing in domestic
03:11investor behavior yeah thank you Paul that's I think what Mr. Devish is kind of talked about the retail
03:20revolution is just about begin it all started with the digitization of the India stack and availability
03:27of that post-covid this is now picked up massive stream the participation by you know the young
03:33investors in India is now going through the roof the industry actually ran a very large campaign called
03:37mutual funds IEA it's basically meant that the mutual fund is for you and that campaign has
03:42attracted a lot of young investors and we had SBI fund management have been actually expanding the
03:47market by what we call as beyond the top 30 you know you know market where SBI our own bear
03:54and
03:54distribution company has a massive footprint 25,000 plus branches SBI itself has about 550 million
04:01customer base it's a massive base of investors so we are now tapping that in a big way as new
04:07generation investors comes on board their expectation to go beyond the regular contractual savings of
04:12fixed deposits and other interest yielding securities to a more market-linked capability will
04:18um is growing and I think uh we are benefiting from that and in coming days I think we will
04:23unlock that
04:23in a much more faster way uh Devashish I want to get back to you uh to discuss um you
04:31know the
04:31expiration of the lock-up period I mean this uh debut you're only a couple of days old uh listed
04:36on
04:36the market so once that lock-up period expires do you anticipate Amundi to consider any more uh stake dilution
04:46see we are now uh this is the first step of uh divestment and this OFS so both parents SBI
04:53and Amundi
04:54divestate 10 percent stake we have plans as per the regulators guidelines we can go up to 25 percent in
05:01coming 10 years these plans are in place but when will come we'll decide our board will decide in a
05:07few
05:07course of time now I'll also respond to the question you asked us universe see the way democratization
05:14of investment happening in the country it is very fast and with a large number of uh population coming
05:21to the investment trade we have the biggest moat of the distribution network to our parent bank as well
05:27as our own mutual fund distributors to move across the country and make this possible in the coming years
05:35thank you so Debashish you talk about your wide moat you've also got some of the lowest operating
05:41expenses among Indian asset managers uh how are you going to maintain that and is the current
05:46approach sustainable or is that something you'll be taking a look at yeah good question Paul uh see
05:53the commoditization happened in mutual fund products the products are now streamlined with the regulator
05:59coming uh on this area more or less the products are in similar way of delivery to the customer so
06:06what differentiates in is the scheme scale operation will make a difference and that is what we are
06:12meaning about democratization they were moving to the villages towns cities and the metro centers
06:18the scale will make a difference a sustainable income agile market share
06:25uh Srinivas I'd like to go back to you now if I can um one of the things one of
06:30the features of
06:31the Indian market has been foreign inflows uh that tapered off a little uh since the since the surge we
06:37saw at the start of the year what what's your outlook for foreign inflows to India over the next 12
06:41to 18
06:41months say and what's the what factors do you feel are really shaping global investor sentiment towards India
06:52well I can give you from my anecdotal evidence that we were uh we were around the world talking to
06:57the largest long-way investors including Harris fund and uh our uh you know interaction with them
07:03having very very positive in fact if you see our IPO which just closed last week uh we had a
07:08massive
07:08participation from uh global investors with the the the market sovereign wealth funds the large long-only
07:15funds and of course funds are invested significantly that also tells you that for a good franchise like
07:20us there's a massive appetite and India actually has such a little such great franchises in in the
07:26country and we think in coming days as the risk on risk of is off in coming days this appetite
07:31should
07:31go up but one thing Paul is that you know the Indian appetite itself is so large and I wanted
07:37to give
07:37you one data point uh internally as we have mutual fund we have this systematic investment plans and they
07:42actually contribute a very big chunk of new money that we get and this is a spread of what are
07:47close
07:47to about um 15 million customers who invest every month with us on this plan they themselves contribute
07:53close to about four thousand quotes worth of new business we already have a large pipeline for us
07:59already played out and of course thank you like I said the global investors are also now turning very
08:03positive to India Srinivas I'd like to ask you also to what degree do you feel a weak rupee has
08:12been
08:12supporting foreign inflows as well and it's a good day to be talking about this because it's getting
08:15near record lows again do you have a forecast for the currency also
08:24I don't think we have any dedicated forecast but we believe that the rupee is going to be in a
08:30narrow
08:30band for the line being as the geopolitical uh you know uh things plays out globally and obviously uh
08:37as an asset manager we don't take a you know currency but directly we're all a rupee player everything
08:42that we have is basically an India capability we do have some u.s investments that we do for Indian
08:48investors who are mutual fund who uh having said that I think uh rupee is a great entry point for
08:54multiple global investors I think uh it gives a good opportunity uh for people to enter
08:59uh and this this is you know as an emerging market uh you know entity in India there is always
09:04this
09:05little bit of uh you know depreciation that investors have already been factoring as they start looking
09:10at investing but maybe at at current levels of 96 97 levels are a very good level for people to
09:16invest
09:18yes and we're just hearing that uh the rbi has just been selling dollars in the foreign market to support
09:23the rupee so we're just keeping an eye on the currency at the moment uh but debashish i want to
09:27go back to you now
09:28uh can you talk to us about how investors see the earnings outlook for Indian companies
09:33and um you know what's your forecast there for the next year
09:39so uh the companies in India uh has been doing well and there has been a wide participation of
09:46private sector investment as we see now the credit optic has been roughly 15 to 17 percent
09:52the first quarter so that way the investment climate will be also very good for the coming
09:58three quarters because this keeps a pace of uh investing in the market so that the private
10:04sector investment goes up secondly there has been a large infrastructure projects which are already
10:10ongoing in the country uh we have the airports coming up we have also large and those are being
10:16funded by both private and public so we see that uh the industry is involved in this sector
10:32um right we've only got a couple of minutes left or even a minute or so uh srinivas i'd like
10:37to uh just
10:38finish with you and uh could you tell us about you know what you feel the biggest risks the biggest
10:42opportunities are for sbi funds and the indian market more generally going forward
10:51i think the risk is largely contained at this stage when the market has so much of value left
10:55i think the potential upside for the market is very high and i think the market volatility is kind of
11:00behind us um you know and so that risk is always there for an asset manager player like us uh
11:05market
11:06market risk which impacts our asset management but i think the pencil opportunity is immense and i
11:11think mr mishad talked about it i think the first biggest opportunity that we see is local integration
11:16and with digitization and now we have a new kyc norms which helps us for uniform device across the
11:22board our ability to convert that opportunity is also going up in a big way so i think in coming
11:27days
11:27you'll see opportunity playing out playing the you know the kind of uh threads that are in the market for
11:33us
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