SBI Funds Management (NSE:SBIFUNDS) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Q2 FY 'twenty seven Earnings Conference Call of SBI Funds Management Limited. Opportunity for you to ask questions after the presentation concludes. From the management team, we have mister Devashish Mishra, managing director and CEO, mister Srinivas Jain, joint CEO, mister Manish Mehta, chief business officer, mister Amul Joshi, chief financial officer, Vinaya Dattar, Chief Compliance Officer Dinesh Baluchanjan, Head of Investments Manish Chera, Chief Investor Relations Officer joining the call. I now hand the conference over to Mr. Devashish Mishra. Thank you, and over to you, sir.

0:55 A very good evening to everyone, and thank you for taking the time to join the call. Let me begin with a brief view of the macro environment. The second quarter was marked by steady domestic fundamentals and broadly stable earnings even as global pressures from higher crude from U. S. Deals and a stronger dollar triggered foreign outflows and bouts of volatility. Despite this, strong domestic participation helped to observe the outflow shock, reflecting the ongoing shift of household savings in the financial assets and keeping overall market sentiment resilient. Now I'll brief out the mutual fund industry.

1:41 Mutual fund quarterly average AUM expanded by 13% year on year and 5% sequentially as of 09/30/2026, touching INR 87,500,000,000,000 at the end of September thirty. Monthly SIB inflows continue to show strength despite market volatility and touched all time record high of INR 32,490 crore in September 26. On fixed income, data AUM saw a 5% year on year moderation, while liquid AUM recorded a strong 27% increase. Positive AUM grew 23% year on year, highlighting sustained investor interest. Overall, industry inflows remain constructive despite short term volatility across all categories.

2:32 Industry continued to have a positive new customer addition, raising over 6.3 core new customers, increase of 11% year on year. Now let me tell you the performance of SBI Funds Management. Your company sustained its leadership in the industry's quarterly average AUM market share of 15%. Our mutual fund quarterly average AUM stood at INR 13.14 lakh crore or INR 13,140,000,000,000, registering 10% Y o Y growth compared to INR 12 lakh crore in the same quarter last year. As of September 3026, our active quarterly AUM was INR 8.99 lakh crore, reflecting 9% year on year increase and our five year CAGR was back 17% backed by stable performance and sustained investor flows.

3:23 On passive front, we remain the largest passive asset manager with quarterly average AUM of 4.15 lakh crore, up to 11% year on year, further strengthening our leadership in the segment. On the alternate side, PMS and advisory, our QAAUM, that is quarterly average AUM stood at INR 13.32 lakh crores, broadly in line with expectations. While the previous quarter saw a onetime relocation of a large mandate, it doesn't have any material impact on our revenues and underlying business momentum remains stable. Our AI platform continues to scale well with quarterly average AUM at crores reflecting 27% year on year growth. To further strengthen and deepen our AI capabilities, we have also added a dedicated business aid for the AI practice, bringing sharper focus to product expansion and institutional engagement.

4:22 Offshore funds contributed approximately INR 42,100 crores to the overall AUA. Gross margin across equity, debt, liquid and purchase strategies remained stable during the quarter and there has been a continued expansion in gross yields on a year on year basis. Our unique customer count increased by 10% during the year, rising to INR 1.85 crore as of September 3026. Our SBIFUNDS rose to INR 2.07 lakh crore with a 15% year on year increase. Monthly SI inflows continue to remain steady at about INR 3,900 crore. We continue to maintain one of the largest distribution network in the industry, supported by nearly 136,000 distribution partners.

5:09 This includes over 125,000 independent financial advisers, over 10,000 national institutes and over 96 banking partners, including State Bank of India, supplemented by 23,000 plus SBIFUNDS and two ninety seven SBI Funds Management branches our branches. This extensive reach enables us to service investors across more than 98% in the country. Our strong presence across Tier two and Tier three cities is reflected in the LDB 30 contribution with nearly two thirds of SBI inflows originating from these markets, underscoring our expanding reach and commitment to broad based financial inclusion. Let me brief you on the new product launches.

5:58 We continue to maintain a strong product pipeline across mutual fund, SIF, PMS and AIF with a clear emphasis on differentiated investor focused offerings. During Q2, we launched five new products, including one SIF, further strengthening our overall product suite. Among the filed offering, both the Magnum Equity Extra Funded Long Shared Fund and SBI Balance Hybrid Fund saw stronger investor responses. Our Magnum Equity Extra Funded Long Shared Fund closed its NFO as one of the largest funds in this category. Our Gift City franchise continues to scale well, supported by the launch of SBI Global Thematic Fund. This initiative enables us enables the investors in India to access global investment opportunities through LRS Group.

6:47 By enhancing our capabilities across active, positive and alternative strategies with strong traction in AIS, PMS and SIF and growing international rates through Gift City and Offshore Maintenance, reinforcing our ability to serve rising India focused demand. Now I'll brief you on technology and digital improvement. We continue to strengthen our digital first approach. Today, 94% of our transactions are done digitally, supported by stronger adoption across InvestApp, Mitra and partner platforms. InvestApp has grown into one of the largest digital investing app in the industry with over 4,300,000, that is 43 lakh raised per user. Monthly digital volumes now exceed 1,400,000 transactions and our ongoing investment technology, AI and automation are helping us to scale efficiently, enhance distributor productivity and deliver seamless experience to investors.

7:43 We recently showcased our new tech platform that is called ARAM in the global fintech festival in Mumbai. ARAM is one of the first assisted digital onboarding solution built specifically on first time investors. It enables other biometric KYC, full location and first investment in a similar journey altogether. Importantly, it helps us to reach customer segments that remain outside the former financial ecosystem, strengthening our financial inclusion efforts. Aram also integrates digital PEKRN that is PAN exempt KYC reference number. This is for the customers without a PAN card, allowing us to extend mutual fund access to the masses in a simple and compliant manner. Coming back to the financial performance for H1 FY twenty seven, operating revenue reached to INR 2,336 crores up to 12% from INR 2,089 crores in same period. Operating profit rose to INR $17.97 crores compared to INR $16.26 crores in H1 twenty six, 11% increase.

8:46 Profitable tax came to INR $15.66 crores in H1 twenty seven and a strong net worth of INR $7,002.70 crores as of 09/30/2026, continue to support strategic investment in scale, capabilities and long term value creation. To conclude, our strategy will focus on four key pillars: democratizing wealth creation, accelerating digital delivery, strengthening investment performance and building new growth engines. With this clear agenda, we aim to deliver consistent outcome for our investors and continue to build a strong technology driven and future ready franchise. Thank you for joining the call. We now look forward to your questions. Thank you very much. We will now begin the question and answer session.

9:43 Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is ended. First question is from the line of Suresh Jain from Motiva Looswal Financial Services Limited. Yeah. Hi. Thank you for the opportunity. A few questions. Firstly, know, if I look at your flows, you know, we've seen a very strong traction in September. So if you would just highlight some data points around that number as we know, how was the exit close in September for us compared...

10:30 To the back book market share, how has been the flow market share on the equity side, the equity plus hybrid side? That would be my first question. Second question is on the cost front. We've seen a significant increase both sequentially and Y o Y in terms of employee expenses and other expenses. So what has driven this, and what should we think about these these costs from a full year perspective? And last question will be on the yield front where we've seen a marginal dip dip in terms of yields sequentially. Is it just attributable to the telescopic structure, or is there anything else? And, also, if you could share the yields across equity, debt, debt, equity, etcetera.

11:20 Yes. Thanks. Yes. Thank you. Thank you for the question. I'll I'll tell you the flows in active equity, funds even liquid. Of course, I mentioned the numbers. Y o Y, it has grown up our AUM as billion to S13140 billion dollars and the active equity QAM grew by 9%, Y o Y to S8996 6,000,000,000, passive 11% Y o Y to INR 4,154 billion and liquid AUM has seen a strong traction with INR 1.2 lakh crores, INR 102,000,000,000,000 and thirty one percent Y o Y. SiP, I mentioned already, it is 15% Y o Y growth and monthly SiP flows are nearly always at 40,000,000,000.

12:07 And coming to your second question on the cost factor, yes, we are heavily invested into a few technology and human resources in the last quarter, that is September quarter. And these are quite kind of one off instances that our cloud infrastructure, our AI driven systems and we have created a new taken new head for alternatives. So all these have been a one time kind of factors of cost in the quarter two, which will not be repeated in the quarter three. For the yield part, I'll ask Srini to please comment. Yes. Thank you, sir. On the E and B, I mean, I think the marginal dip is basically you're comparing our last year, H1 to now.

12:52 But when you look at it from Q1 to Q2, I think is what you asked, there has been a minor dip because in Q1, we had seen some significant lower cost at operating cost level, which again because of a little higher cost this time, the operating cost is actually kind of margin operating profit margin has come down. But from a yield point of view, our equity yield continues to be strong. In fact, right now at Q2 FY 'twenty seven, equity yield would be closer to about 62 bps, 63 bps on an average. And our debt yields are in the range of about 34 bps, 35 bps, the liquid around 11, 11.12 bps. That's the range that we have today.

13:42 These are usually competitive or close to best in class in this category. Yes. Thank you. Thank you. The next question is from the line of Mehdi from MK Global. Please go ahead. Yes. Hi. Thank you for the opportunity. So my first question was on the other expenses. So actually, you mentioned that there were some tax related costs, which were there in Q2 and Q3 onwards, you would see largely these costs not coming back. So should we take it as the other expenses for the balance of the rest part of the year to be in line with the Q1 number? So that is my first question. And secondly, we have almost added 1,900,000 fresh SIBs during the quarter. So could you just help us from which channels these SIBs are being sourced? So I was particularly looking if this was largely driven by SBI channel or any other channel.

14:46 Yes. Thank you for this question. In fact, you rightly pointed out this onetime investment in IT and human resources will be definitely moderated. It will be reduced to a large extent, a very small part of the year end, but however, we are very mindful of the expenses. They are giving us large dividends for future. So my take here is these are gradually coming down because our investment in AI and the cloud infrastructure as well as the key hiring will further lifetime kind of thing. Now coming to the SBI inflows, yes, the SBI inflows has been from all the channels and including SBI, but we have a large channel number of mutual fund distributors, our Robo, our RIAs, have all contributed to their mutual fund SBI inflow. So it is whole like it is wholesome flow, not specifically to SBI or any specific channel.

15:47 Got it, sir, sir. And and one more, if I can just squeeze in one more question. So if we look at the employee cost, you just mentioned that we are investing on the talent side. So could you just help us with a full year guidance or employee cost growth over the next one or two years, if you can just help us with that number? So as you are a large player in the market, so we are entering into also different expansion fields like AIF and PMS and the alternate. So they are all we are investment going on. Also as you are growing in the market, our sales force, our distribution network also increasing. So these are all proportion to the growth factor.

16:32 Of course, we did a significant hiring in this quarter, which will not be there in next quarter. Moderation definitely is there. As you grow, we'll be growing in this. One time expenses will happen this quarter, then it will repetitive in the next quarter. Got it, sir. Thank you so much. Thank you. Thank you. The next question is from the line of Supratim Datta from Jefferies. Please go ahead. Hi, sir. Thanks a lot for the opportunity. My first question again is on the cost bit. I do understand that there have been one off hirings and investments this quarter. If you could help me understand that the 50 crore additional spend versus last quarter, what proportion of this would recur going ahead and what proportion will not recur?

17:19 If you could give me some color, that would be helpful. Secondly, you know, wanted to understand that, you know, in the recruitment that you're you're doing on the AIS side, you know, what are the, you know, strategies that you're looking at rolling out? You know, how how do you see this business, you know, over the next, you know, three, four years? If you could give some color on that, that would be helpful. And lastly, if we have seen markets being very volatile, you have done fairly well in adding... Cutting to add SITs. But if you could give us some color on the investor sentiment or during a discussion with distributors, what are you finding with respect to investor sentiment? How is that tracking? And is there any divergence in behavior that you are now seeing versus maybe three, four months back? That would be helpful. Thank you.

18:11 Hi, Supratim. Thank you for the question. On the cost side, I think what you should assume as a recurring part is around 50% to 60% of it should continue because these are all senior management sort of investments that we have done on people. Another technology also, while some of these items will drop off after Q2, there will also be some incremental investments as our business grows in terms of enhancing our capability to meet customer needs on the digital and as well as certain AI related investments that we plan to continue as time goes on. Yes. So coming to the AIF related business and strategies. See, we being largest for now also entering into the AIFUNDS long back. Although the basket of the size is not that large, but still we have AIF knowledge in our kitty. What we're doing now is we're looking at the private equity and private credit space more closely by selecting a few select individuals and we filed annexes also. We have taken a head of alternate in our company and building a strong team to drive alternatives in both private equity and private credit space. I cannot give exact number right now. But yes, in the years to come, it will be one of the books which is giving us good volumes in top line as well as bottom line. I'll come back to your very important question, our sentiments of investors.

19:33 In the last quarter, when the market is volatile and market is really not coming to anybody's expectations, there is also a safety net or a safety feeling coming back to the customers, right? That is why this is the SBI inflows are growing. Although markets are quite volatile and I think you can also find out the point to point nifty is coming down. I think YTDs have come down by 8.2%. So but the SBIFUNDS increasing. So we are now looking those kind of sentiments where the SBIFUNDS much more. In fact, to supplement your question, our focus as the largest fund house is also increasing in this on this kind of volatile market scenarios and much of our focus also on the B30 location, where we're also starting the SIB journey of new investors with proper understanding and also proper knowledge about those products.

20:36 That's very helpful. So just one follow-up on the AIS side, how much capital are you looking at committing into that business going ahead? We are not a capital like not a subsidiary kind of thing. We're starting with our own division to four come years. One, it is a full place kind of business unit, then we'll think of a sustained capital allocation. Now it is a part of our own system. I'll also ask my Chief Business Officer to supplement the answer about sentiment of customers. So he is widely visiting the places. Just Thank to add to what MD sir had to say, at least our experience of when we've been traveling the country and meeting with a lot of distributors, I think broadly there are two segments of investors. One, obviously, are people who continue to remain in the mutual fund journey for a very long period of time and have maybe experienced a few volatile periods of during their investment journey.

21:37 That so there is a lot of maturity that those segments of investors are showing. I think the anxiousness is probably amongst new investors who may have come into the industry in the last two, three years. But I think there's a lot of effort which we feel as SBI Mutual Fund and with the distribution partners in terms of how to educate these investors and sort of give them enough examples to showcase that long term is actually the right investment mantra. Over long periods of time, people have made very healthy CAGR returns on their investments. And the testimony of that is if you see the September net sales numbers of the industry, the number came in at about INR 38,000 crores. What does it mean that in spite of a INR 32,000 crores of SBIF book, I think there was incremental about INR 5,000 to 6,000 crores of lump sum purchase, which investors have made. So I think that also gives us a lot of confidence that investors are definitely are maturing and have matured a lot. And every opportunity that they're getting to sort of look to add into the mutual funds, I think they have been very actively doing That's very helpful color. Just one thing here, is there a difference in the sentiment when it comes to assisted channels and unassisted channels or fintech platforms?

23:00 We have not done any study on that, but I'll again request Manish to give an overall view. Yes. So, see, definitely, I think in these periods of time, at the end of the day, investments and money. So definitely, there is advice that maybe clients are getting through their distribution partners or through relationships managers of the banks or national distributors they deal with, their understanding probably is much better. As far as on the I mean, the fintech platforms are concerned, the decision to buy is also being taken by the investor. The decision to act is also being taken. But even in that space, I think one thing which we've been observing that is a lot of these platforms have also been taking up a lot of initiatives at their end to communicate to those segments of investors.

23:51 It could be through maybe digital IPs that they have been doing. It is through a lot of YouTube seminars that they've been doing with mutual funds. Like, with... Even at SBI also, you know, we've been doing a lot of such videos of our fund managers or, you know, just general question and answer sessions, which they've been uploading on their website, all of that and writing a lot of blogs. So they're also doing their bit to see to it that they're able to reach out to these investors and communicate that story of, you know, long term is how you'll look to create wealth. Understood. That's very helpful. Thank you. Thank you. Thank you. The next question is from the line of Sreya Sbimpli from Nomura. Please go ahead.

24:38 Hi. Thank you so much for the opportunity. My first question was on cost. While you highlighted that cost has been elevated in Q2, Do we have an ESOP policy in place? And when can in which quarter can we expect this higher cost due to ESOPs coming in? If you can explain that, please. Yes. So we have already had the policy in place, and it is fully active. And we don't expect any cost implications in the coming quarters in this. Whatever the regular discretion happens, that will continue, not an exceptional cost increase due to isopolicy. Sure. That is very helpful. My second question was on SIF.

25:29 We have seen strong AUM growth from around 35,000,000,000 to $44,000,000,000 in this quarter in SIF, majorly because of the new SIF that we have launched. My question was ex of that inflow from that one SIF launch, how much is the inflow coming into SIP as the industry? And what is the inflow share of SBIF in that SiP inflow coming for the industry? Answer, the unfortunate part is we don't have SiP specific SiP data available in the market, but we can hazard a guess it's a smaller number because this is a SIF is a high ticket investment value.

26:26 We have seen both traction in the new fund that we launched where we've got, of course, record collection. We also on our previous fund of ours, we've also got net inflows there. So in a way, we have about 16% -plus market share on that particular segment and continues to grow. We have only done two funds still now, and we still have another six odd four more to go out of the total six SBIFUNDS. So you could expect more of the SBIFUNDS to come in coming days from our side. Sure. So just one thing, what would be the industry wide SBIF inflows, if you can help with that maybe per month or per quarter? I can pull that up, but I don't have it handy at this point of time. But I think that most of these flows are because of new funds being launched. So I think that will look like fairly anomaly, including ours because SBIF, it's just a new phenomenon.

27:21 So what I feel is most of these funds, I mean, there are quite a few of them now. All of them have been announced in the last quarter or so, majority of them. So I'm assuming all of these flows will be NFO related flows, and we have significantly small portion coming from non NFO. Fact, what I'll supplement what John CEO said, SBIFUNDS been like for the long time has been a small investor base. And we have seen that contribution of SBIFUNDS is much more like 65% is from B30 cities. So there the mutual funds schemes are more prominent than SBIF. SBIF related SBIF is coming up, but it has to catch up much more.

28:08 Yes. Thanks for that. Another question was on employee cost actually. You highlighted that there were some hires and because of that, we had a higher employee cost. The cost quarter on quarter was higher by around INR 27 crores, 28 crores. How much of that would have been onetime hiring costs? What would repeat in the next quarter and what would not, if you can throw some light on that? So, Suresh, you should look at the Q2 cost as ongoing run rate. Sequentially, you see a bump up in Q2 versus Q1 because Q1 had some write backs built in into that. So from your perspective, you should look at the Q2 cost as an under going forward.

28:59 Sure. That is very helpful. And the last question was on yields. While our peers have seen quarter on quarter increase in revenue yields, we have seen a slight moderation in the yields. While I understand you highlighted that it is majorly because of the change in increase in equity AUM. Is there any distribution commission change or change in mix of the distribution? So higher distribution commission channel getting higher share of the distribution mix.

29:50 Is that in the case? Let me take this, Suresh. I think if you aggregate this breakup rather than looking at overall yield, I think at every category, we are almost one passe here or there from 26 to 27. So I don't see there is any major change in individual category yield. It's just the asset movement, which is the difference here. Otherwise, there is really no change in yield. That means that there is neither any change in distribution cost at quarter on quarter level from the. So these numbers have not changed dramatically, it's a change in the overall asset mix. And we already clarified in last quarter that this April 1 onwards were neutral in terms of new pricing methodology of the regulators.

30:43 So that has been already factored. So there is no change in yield. Rather I could see as rightly said by Jo and SBIFUNDS, yield has year on year has gone up by one or two bps in this quarter. Fair enough. Thank you so much sir for answering my questions. All the best. Thank you, SBIF. Thank you. Thank you. The next question is from the line of Lalit Mohandi from Equira Securities. Please go ahead. Yes. Hi. Good evening and thank you for your question. So just two, three questions. One on the alternative side, like we are seeing some decline in the PMSAM. So could you tell us like what could be the reasons for that? Secondly, if you could break up the overall revenue between like the MF and the non MF side?

31:30 Yes. I think we had actually talked about this some time ago. One of the large investors mandate got reallocated. And as part of the reallocation, this impact has happened on our KMS advisory business. It's an advisory business, so it is technically nonmaterial when it comes to the revenue side of it. But it does it did impact us in terms of overall AUM. From a mutual fund, nonmutual fund point of view, our mutual fund, like we said, is around 13.5 lakh crores. And nonmutual fund today is also at the same kind of level. We are like a fifty-fifty kind of ratio between mutual fund and non mutual funds today. The revenue, obviously, mutual fund is a high revenue product.

32:18 In the mutual fund, non mutual fund, if you remove the advisory services, we are roughly around 35 to 40 basis points as an average when it comes to offshore advisory and our alternative asset category. And any new products in pipeline like for this quarter and for the remaining half of the year? Yes. So I'll take this. So we are already in process of launching a few products, and that is to consolidate our position in the market. Also, to have how the market sentiment goes on. So we watch very closely. And mostly value based are the strategic best products will be in pipeline.

33:05 And we'll launch as per the market conditions and also, I don't know if you like the demand on this. Yes, we'll be once we file with we'll be able to give you more data, but there are plans to launch Category III in the coming months together. And obviously, we are building the Category two capability with the new Head of AI joining us. This is going to be an exciting period in coming days. You will see us launch more capable products, not just in Cat three, which we have done successfully, but in Cat two also in coming days. Sure. You, sir. Thank you. Thank you. The next question is from the line of Mohit Mangal from Centrum Broking. Please go ahead. Yeah. Good evening, everyone, and thanks for the opportunity.

33:52 So my first question is towards the V30. So I was looking at a presentation, and it says that the V30 contribution has been around 65%. So just to know are the investors in those V30 are interested in flagship schemes and how long typically they keep the investments in these schemes? Yes, very good question. I think our focus has been on V30 for a long time. And if you look at the same slide, 98% of them are more than thirty six months. In fact, thirty six months is a regulatory requirement, but that is more than even some years like five to ten years. So these customers are mostly moderate risk taker. And as I mentioned before, the knowledge, the awareness programs we conduct now in B30 cities made us to understand and believe that the investor education has been reaching to the last mile.

34:46 That is why the SBIFUNDS is 65% and that is more than three to five years kind of range in this B30 cities. Now what we are trying to do is like we're trying to again do more of industry awareness, more of investor education and most of regional language based like models, more of stories, more of learning funds. Fully translate our B30 kind of offering much more in the coming quarters. All right. This is helpful. The second is basically, proposed mutual fund only PMS. Wanted to know your thoughts and does SBIFUNDS have any plans to have a new team or how are we going about it? Yes, this is something that we as an industry have been pushing for and SBIF also has been one of them who've been asking for helping us build lower entry barrier PMS product.

35:42 We will definitely build an internal team in terms of fund selection process because this is an important stuff. I think my understanding is this kicks in April next year. And before that, we'll be able to put our team together. And of course, this is a product solution that we will definitely be part of in coming days. But the whole idea is to put a fund selection team who can design solutions that we can then make that offer. But certainly, you will hear from us on this category in coming days. Understood. This is very helpful, Thanks and wish you all the best. Thank you, Mohit. Thank you very much. Thank you. The next question is from the line of Abhijit Sakhari from Kotak Securities. My first question was a clarification on the cost comment.

36:31 So you said the employee cost is this new base that's been set in the second quarter that should continue. But earlier, there was one more comment which I wanted to clarify was around 50% to 60% of cost hike being more like the recurring one. So just wanted to clarify those two points. No. Yes. The cost structure, which one time happened after hiring will go down by 30% to 40%. So 60% will be what will be kind of recurring. What looks a little aberration is that sequential quarter. So that looks quite a high figure. So all those hiring of the one times have been over. So I think 30% to 40% will be moderated, 60% will continue Yes, for the new definitely a new base, but last quarter, in fact, as a sequential quarter, there was also some exceptional item that was there on the HR cost, so the people's cost. That again is a base impact that you will see.

37:33 Also, think the question on what Amol was trying to say was largely around the other expenses side of it, which is where we talked about tech expense and part of it. On the tech expense, we expect a part of it to continue because some cloud compute and AI cost will be there. We are also coming up with our own data center, which is going live in a couple of months. Some of these costs would get moderated as we move our cloud instance to an on prem instance. But these are actually investments that we're doing to improve productivity. And on that, I think it's a capital investment for us. It's kind of a capital investment for us. Understood. My second question was on the SBI versus other channels, if it's possible to like quantify the contribution in terms of flows or any qualitative color if there is a like a slightly higher difference between how those two channels are behaving, let's say, the quarter gone by and maybe comparable period last year?

38:39 I think the better way to look at this is to look at where we are improving. I think what happens in an SBI kind of a channel is that we've already made significant inroad there. In the other channels, we have actually made significant in road in the last quarter, especially on the banking side, we've actually moved the needle. We expect that in coming days, other channels numbers also to start looking up significantly. State Bank of India obviously has a huge potential when it comes to new customer because of the base itself, and we've been talking about that five thirty million customer base that the bank has and the potential for us to kind of tap into it. That will continue to be there, but our real benefits in market share growth is now coming from channels like bank and other distributors. So SBI Group or SBI channel contributes for 20% of the net inflows, which is also almost like the same level of the AUM, say the same level in the last year quarter also. So things are not drastically changed for SBI or for us.

39:42 Got it, sir. Last question was, again, some qualitative feedback if you can give on what's been the feedback on fund performance, especially from the large independent channels? Yes. So I'll ask Investment Head to respond. Yes, sure. So being a large fund house, we have funds across asset classes, across investment side, right? So at any given point in time, you will always see essentially certain funds doing particularly well and certain funds not doing so well. But if I have to aggregate it, the one increasing trend for us is if you look at recent performance, it has definitely improved in aggregate terms. So that is definitely an increasing trend. Another data point to share is when you look at the aggregate equity plus equity oriented hybrid schemes, and when you look at their performance over the last three years, last five years, they still look quite healthy. Over the last five year period, roughly 70% of our funds are in the top two quarters. Even if I look at the last three years, close to 45% of the funds are in top two quarters.

40:47 And if I then sort of further reduce the time horizon, that number has again moved up above 50%. So at the margin, the trend is definitely improving. But as I said earlier, because we are quite big and we have a variety of funds, you will always essentially see at any given point in time some sort of variation in fund performance. Andy's question is how the market is kind of looking at it. And I think we have seen some really green shoots and some of our distribution partners actually picking up some of these strategies and scaling them. And we hope in coming quarters, this will continue, and we'll build on that. What we are definitely seeing is that wherever some of our flagship streams, if they have improved in performance, the market is clearly recognizing that. So flows are definitely following in these things.

41:37 In couple of quarters, we have almost in one category, we have like some 70%, 80 of net new money. So it's clearly showing in the new money that's coming. Got it. Thanks a lot and all the best. Thank you, Mr. Abhijit. Thank you. As there are no further questions from the participants, with that, we conclude today's conference call. I would now like to hand the conference over to management for closing comments.

42:23 Yes. So on behalf of SBI Funds Management, we thank everyone for joining the call. And being the largest fund manager of the country, we would like to keep this trust, efficiency, productivity always on our target. And we'll come back again to you in the next quarter with better results. Thank you. Ladies and gentlemen, on behalf of SBI Funds Management Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.