Religare Enterprises Ltd (NSE: RELIGARE) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Manasi Bodas — Investor Relations, Adfactors PR Private Limited
Pratul Gupta — Chief Financial Officer
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
Vijay Kumar Goel — Managing Director at Religare Broking Ltd
Babu Rao — Group General Counsel
Analysts:
Umang Shah — Analyst
Adarsh — Analyst
Niteen S Dharmawat — Analyst
Hitaindra Pradhan — Analyst
Ravi Purohit — Analyst
Vikash Srivastava — Analyst
Rohan Jain — Analyst
Chintan Mehta — Analyst
Sugandhi Sud — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call of Religator Enterprises Limited hosted by AD Factors PR. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then CDAW on a Touchstone phone. I now hand the conference over to Ms. Mansi bodas from add factors pr. Thank you. And over to you Ms. Mansi.
Manasi Bodas — Investor Relations, Adfactors PR Private Limited
Thank you Dutuja. Good evening everyone and thank you for joining us today to discuss Q3 and 9:1 FY26 business performance. We have with us management of Relige and its subsidiaries. Before we proceed with this call, I would like to mention that some of the statements made in this call may be forward looking in nature and may involve risks and uncertainties. The Company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made. Documents related to company’s financial performance including investor presentation have been uploaded on the stock exchanges and on the company’s website.
I now hand over the call to Mr. Pratul Gupta from Religar Enterprises Limited over to you sir.
Pratul Gupta — Chief Financial Officer
Thank you Mansi. Good afternoon ladies and gentlemen and welcome to Religion Enterprises Ltd. Quarter 3 FY26 earnings conference call. I am Pratul Gupta, CFO of the Company and I’m happy to host this session marking our continued commitment to transparent engagement with investors and analysts following our first call which happened in November 2025. In the room we have senior management from Religare and its subsidiaries. Today’s session will cover detailed updates before transitioning to Q and A. I refer to the presentation already before you since it has been uploaded on BOCES. It is also available in IR section of our website.
Referring to slide number 5 business overview. While some of the audience may have seen this slide earlier, I would just like to refresh everyone’s memory. Religare Enterprises serves as the listed holding company CIC which takes in high potential financial services business across Care Health Insurance which is India’s second largest standalone health insurer Religion Broking which is into retail focused securities Broking along with E Governance business Religear Finvest, the SME lending platform and Religure Housing Finance which focuses on affordable housing. Moving to Slide 6, the group structure is as depicted in the slide we have listed Religare Enterprises below which there is Care Health Insurance wherein religious enterprises hold 63.2% share.
We also have a wholly owned subsidiary called Religare Broking Ltd. Which in turn also holds Religare Digital Solutions Ltd. Which is its fully owned subsidiary. The SME platform Religious Invest Ltd. Which is another arm of lending segment is a wholly owned subsidiary and Religare Housing Finance Housing Development Finance Corporation is a significant subsidiary which is below Religious Finvest. Religious holds majority strategic stakes across insurance and financial services platforms which we believe are ready for growth. Moving to slide 7 at an industry level, the quarter ended December marked a broad based performance across India’s financial services sector.
The NBFC ecosystem demonstrated resilience with industry AUM Growth capital markets activity continued to benefit from strong retail participation and sustained domestic SIP inflows supporting Broking and asset management businesses for insurance businesses. After a brief items due to GST changes, the activity returned back with lot of vigor with respect to the business environment for real businesses for Q3FY26 we navigated a mixed operating environment during the quarter. Our performance reflects disciplined execution across our diversified financial services businesses. The group results this quarter absorbed one time employee benefit provisions related to past service liabilities excluding these non recurring items.
Our core operating performance remains stable supported by healthy franchise momentum. As a diversified platform, we continue to see opportunity from the strengthening credit cycle and supportive policy environment. Our approach remains deliberate focused on building strong operating foundations rather than chasing short term growth. We have focused on governance via board reconstitution as well with three promoter nominees added in July 2025. Further, the Board has proposed the induction of three promoter family members, Dr. Anand Burman, Mr. Mohit Burman and Mr. Aditya Chandberman as Additional Directors along with Mr. Jameet Modi from Samco Group as Additional Director. They will be designated as non executive and non independent directors subject to necessary regulatory approvals.
We have also strengthened leadership across the Group. We have Mr. Vijay Goel joining as Managing Director of Religear Broki. Recently we also welcomed Mr. Babu Rao from Bajaj Finance as Group General Counsel and Group Chief compliance officer and Mr. Indranil Chaudhary as Group Chro who earlier served as Chro for UTI Mutual Fund. REL continues to maintain a strong capital and liquidity position it providing flexibility to its operating businesses to support growth drive stabilization and pursue value accretive investments. Capital allocation during the quarter remained measured and selective aligned with each subsidiary requirement. Our focus remains on preserving balance sheet strength while providing funding support to businesses as per their growth plans.
Our priorities continue to be allocate capital in line with risk Adjusted return potential, reinforce governance, operating discipline and risk controls across all businesses and position the group to compound value over medium to long term business. Specific observations are summarized in Slide 7 across business segments including insurance and financial services. Now let me give you a snapshot of income statement at the consolidated level. The company clocked a total income of rupees 2067.9 crores against 1670.2 crores for the corresponding quarter last year. I am on slide 8 on a nine month basis. The income reported is Rupees 6033.1 crores against income of 5355.6 crores for the same period last year.
The total expenses for the period were Rupees 21.71crores and a negative PBT of Rupees 103.1 crores. The corresponding number for last year was a negative 78.9 crores. On slide 9 we have segmental reporting in terms of segments. The insurance business clocked a revenue of rupees 1931.9 crores whereas financial services were at 143.1 crores. The profitability for the insurance segment was a negative of 111.2 crores whereas Financial Services reported a profit of 8 and a half crores. After accounting for one time line items including wage code provisions as well as write down of investments in case of rfl.
The corresponding assets and liabilities are also detailed on slide 9 on a standalone basis. Referring to slide 10, the total income was rupees 2.4 crores against a total expense of rupees 13.8 crores leading to a loss of rupees 11.4 crores before tax during the quarter. Just to remind the audience, the numbers pertain in case of standalone only to CIC Holding Company. We will now dive into the performance of each business starting with Care Health Insurance. And I would like to hand over the floor to Mr. Ambreet Sindal, CFO of Care Health Insurance Limited. Over to you Amrish.
Ambrish Jindal — Chief Financial Officer, Care Health Insurance Limited
Thank you. Good afternoon everyone. This has been a transformative quarter for India’s insurance sector. The insurance amendment bill was passed during this quarter enabling 100% FTI. Also, this was the first full quarter following the GST exemption on individual health and life insurance policies. This exemption has materially improved affordability for customers. We also saw the new Labor Code come into force. Highlights for the quarter are our retail business during the quarter it grew 41% year on year on a full premium basis with continued market share gains in retail health insurance. The company remained profitable for the quarter on a full premium basis maintaining our track record of profitability since financial 1890, we achieved the credit rating upgrade from A to AA reflecting our strengthening financial position.
Our digital transformation continues. 96% of policies are issued digitally and over 76% of cashless claims are processed within 30 minutes. Customer complaints declined as compared to the preceding quarter. The new labor code did impact our financials with an approximate 13.5 crore which is a one time charge for this quarter. Now let me walk you through to the presentation. I am on slide number 12. Company achieved a top line of 7,906 crores on a full premium basis with a growth of 21.5% where in this quarter retail growth from proprietary channel is 41%. Our AUM crores crossed 10,000 crore rupees milestone.
The investment book increased by rupees 1800 crores compared to March 25th driven by business growth and 322 crores of capital infusion. In the month of September 25th, company has a solvency of 1.70 as at the end of quarter 3, our combined ratio improved by 110 basis points. On a YTD basis we have a market share of 9.9% among private players and 22% within SAI segment and our claim settlement ratio is 97%. Moving on to the next slide, Over the previous three years we grew at a CAGR of 33% and in this current year on a full premium basis we grew at 21.5%.
Our retail health market share continues to expand currently at 11.4% of the industry and 19.5% among SAHEEs. While industry numbers on a full premium basis they are not available for retailers. But just to give you a perspective, industry grew at 16.5% basis. On one for retail health wherein SAHIS grew at 18.75% and we grew at 23.3% resulting into increase in our market share. The organization is a multichannel organization focusing on all channels wherein agency channel contribute almost 40% of the total GWP. Our retail book constitute approximately 63%. Now I’m on Slide 14. All numbers in this slide they are on a full payment basis.
Our profitability as on December 25 is rupees 265 crores against a PBT of 92 crore in the same period last year. Underwriting results are also improved in this financial year as compared to previously the underwriting results they are improved by 23% if we remove the one time impact of the labor pool. Then the underwriting results they are improved by 27% as compared to previous year. Claim ratio on a YTD basis has increased by 2.7%. However combined ratio have improved by 1.1% as compared to previous year. Our expense of management continues to decline as we benefit from scale and digital adoption.
And we remain fully compliant with the UM requisitions. Our investment book of 10,000 to 46 crore is consistently delivering a yield in the range of 7.2 to 7.3%. Moving on to the next slide numbers. On this slide they are on a one by N basis and hence they are not comparable. But just to give you perspective. Under one by n basis our top line is lower by 734 crores. And profitability is lower by 354 crores compared to full premium basis for the first nine months for this quarter top line is lower by 181 crores. And profitability is lower By 200 crores.
Now this is purely a timing difference, not an economic loss under the earlier accounting. Just to give you an example. If we sold a three year policy for rupees thirty thousand. The entire amount was recognized as gross return premium in year one. Under the new one by N methodology we now recognize only one third that is 10,000 in the year the business and the balance 20,000 in the following two years. As a result, in the year of sale I reported top line and profit look lower than under the old method. Because a portion of the premium and the corresponding profit they are pushed into the future years.
Hence this is only deferral of premium and profitability will accrue over a period of time. Thank you. We keep on expanding participation. We keep. We. As we also highlighted, we are an Omni channel organization. So we keep on focusing on all the channels within the that are present in the health insurance space. We are investing a lot on the technology and we are the only company commission on a daily basis. We keep on innovating on our products and wellness integration. And we have also started Gift city operations last. We are acting as a reinsurer for foreign insurance companies.
They are based out of the Guyana Middle East. And this is how we are expanding over the years now. Thank you. Yeah. And handing over to the Patul. Thank you Amrish for this detailed. Sure. I now invite Mr. Vijay Kumar Goel, M.D. of Religion Broking Ltd. To give his comments. Just to introduce Mr. Goyal. He joined Religion Broking recently as managing director effective February 2. He has got more than 30 years of experience in financial services having spent 11 years with Aditya Birla Financial Services and 15 years with Motilal. Previously he was the CEO and broking of Distribution, Private wealth management business and home finance business with the Motilal swal.
Before joining rally broking he was self employed having a professional practice as an executive coach and business growth consultant, Chartered accountant as well as a cost accountant. Over to you Vijay. Thank you.
Vijay Kumar Goel — Managing Director at Religare Broking Ltd
Thank you Pratul. Good evening everyone. Quick update on Reliance Rally Gate broking. Our revenue yoy was up by 12% from 81.5 crores to 91 crores. Our client debit book known as MTF popularly in the market as well as the short term debit book was up by 93%. YoYo from 165 to 317 crores. The clients traded unique clients traded. Yoy came down by 11% for US number industry. industry level this number was came down by 12%. So we did slightly better than industry out there. The E governance business grew by 21%. Moving on to slide 19. This just shows that our E governance business is largely franchise driven and technology driven across the country where we have more than 50,000 agents selling various small value solutions to a lot of rural and semi open clients.
Slide number 20 if you move you will observe that at an industry level the overall demat accounts in last five years have grown from five and a half crores to now about 21.5 crores. But the active ratio basically the clients who are trading with the exchanges has been consistently coming down. In 22 it peaked at 40% of all the clients registered with with DMAD accounts which has now come down to 21%. Slide number 21. As I already mentioned at the beginning that our revenue YoY grew from 81.5 to 91 crores. The PBT profit before tax grew sharply by about 893% from 70 lakhs to about 6.6 crores.
Our network is showing steady growth from 350 crores to about 366.6 crores. And assets under custody which is the demed balances that we hold for clients is about 42,642 crore rupees. If you look at the quarter four of last year you will find a very good growth from 37,847 crores. Moving on to slide 22. Our daily turnover for cash market is 276 crore rupees. For the quarter that we are discussing our derivatives turnover was about 9,782 crore rupees which grew yoy as well as from quarter four of last year. Our active clients is slightly down.
Active clients basically mean the clients who are eligible to trade as per national stock exchange criteria and the unique credit clients I already mentioned earlier has come down by about 11% at the fall which is lesser than the industry fall of 12%. Moving on to slide 23. These are our financial numbers. Our income 91 crore rupees as compared to 81 on a basis. Our total income is 274.7 crores as against 299.30 for the corresponding nine months previous year. Our profit before tax for the quarter under reviews 6.56 crores yoy 0.67 crore. The growth is from 0.67 to 6.56 crores on nine month basis.
Our profit is 16.71 crore rupees this year as against 35.68 crore rupees for the last year. Moving on to slide 24. We understand that Pratul also mentioned a lot of retail participation increasing driven by SIP as well as prosperity as well as the digital revolution that has taken place and that opens up an opportunity for us to acquire a lot of new clients which we’ll continue to do. Focus remains on activating a lot of clients that are already registered with us and also launching new products on non broking as well as broking platforms as well as investing in a digital platform to make it a very strong and scalable platform.
That’s it. Thank you.
Pratul Gupta — Chief Financial Officer
Thank you Vijay. We now move over to Religious Finvest Limited. We are on slide 26. Religious Invest Limited is a part of financial services segment of Redgear and it is categorized as a middle layer. NBSC RFL currently has a core book of SME own 70 crores which is left and along with a cash balance of rupees 480 crores. This kind of cash collection has been possible because of our tremendous focus on collections and recovery. Our collection efficiency continues to be 99% or thereabouts. Our net NPA ratio has continued to be very stable and is at 1% and CRAR which is the regulatory ratio is at to 28%.
This quarter marked continued recovery from the loan book following regulatory cleanup. Asset quality remains stable reflecting close portfolio monitoring. The focus of the employees also made sure that organization is ready for the next phase of rebuilding the business and growth with the leadership teams being there. As I mentioned earlier the cash is available. There is enough capital by Way of net worth in excess of 800 crores and the platform is ready for next business line that we choose to adopt. During the quarter the board has been strengthened with members from the promoter group as well as addition of independent directors coming to slide 27.
While it seems a busy slide my take all the legacy issues have been resolved now. There are no cumulative elements in any of the buckets and our IT platforms are currently getting refurbished to take care of future business needs as and when we restart the business. To take you through the financials, I’ll request Mr. Prakash Jajani, the CFO of religious invest 2 give his comments. Thank you Pratu. Good evening everyone. I am Prakash Jijani, CFO of RFL. Slide number 28 gives you key ratio over the few quarters. Our total income is at rupees 39.6 crore in this quarter.
Our profit after tax has reduced to rupees 1.2 crore in this quarter due to impairment provision on subsidiary investment of rupees 17.4 crore as well as new labor code provision on one time basis. The collection efficiency continue to be stable at around 98 to 99% and MNV are stable at 1% and net worth is at 112.9 crores invest in this quarter. KR has significantly improved quarter on quarter basis and it is 22.8% currently. 228.2% currently. On the financial slide number 29 our interest income has increased due to improved collection and recovery. We have reported a total income net of finance cost of Rs.
39.5 crore against rupees 21.8 crore for the same quarter last year. The 3 provision operating profit has gone up substantially to rupees 21 crore against rupees 40 lakhs for the same period same quarter last year. Profit forecast for the quarter is lower on account of earlier mentioned impairment provision on the salary investment as well as new labor code project on one time basis for the year under consideration nine months. The total income net of finance cost has moved up from 53.4 crore rupees to 79.4 crore rupees. The resultant pvt has gone up from 16.4 crore rupees to 49.9 crore rupees in the current year.
These are the major financial highlights. Thank you. Handing over to Pratu. Thank you Prakash. I now invite Rahul Mehrotra, the CEO of Religious Housing Finance to give his observations on the results. Thank you so much. Good evening and welcome to everyone. Relegate Housing finance company focuses on the affordable segment with products such as home loans and loan against property. With an average ticket size of around rupees 10 as of Q3 and the AM of the company is rupees 241 crores. With a product mix between home loans and loan against property of close to 70 30%.
The collection efficiency of the company is around 97.36% which is slightly higher than last quarter and with a crar of around 132% the company continues to enjoy. Investable rating of will be minus from both IQRA and KRH. Currently the company works from a branch network of 50 and serves 8 states in the country. The company focuses only on granular retail portfolio and has a strong capital base of close to 100. Externally there are strong drivers aided by government initiatives which are driving the affordable housing market growth at around 13 to 14%. The company has a stable portfolio.
IT transformation of the company is in its last leg of implementation. Moving to the next slide which is slide number 32. The Indian retail credit growth story is intact with the industry clocking an average CAGR of close to 22%. The affordable mortgage leads the AUM growth with about 15.5% growth. Considering that the Indian mortgage penetration as a percentage of GDP is only about 11%, there is enough and more headroom available for us to grow. The average CAGR clock by the affordable housing finance industry is around 20 to 22% which is ahead of the mortgage industry growth percentage.
Coming to the next slide which is slide number 33 we we are showcasing the key ratios for the company. For the quarter ended December 25th the company clocked the revenue 7.1 crores with an average yield of around 15%. The company has a stable GNPA and NNPA with NNPA around 3.5%. The CRAD for this quarter end has reduced from 142 to 132%. If we compare it to the last quarter, the same is on which we have taken from Religion enterprises. Coming to the next Slide, slide number 34 where we are showing numbers Q1. Also been brought down from Rupees 13.61 crores to Rupees 13.04 crores for the same quarter last year.
For the quarter ended December 25 the company has booked a loss of Rs 5.93 crores, slightly higher due to the impact of provisioning that was taken under the new labor code. That’s it from my side handing over to Mr. Pratul Gupta. Thank you Rahul. Now that we have discussed the quarter gone by, let me get to the other part where we will discuss about Reorganization of Religious and Demerger Office financial services business on 14th February 2026 this year the boards of Religear Enterprises Limited and Religious Fitness Limited have approved the demerger of financial services insurance businesses of the group into two focused and independent listed entities.
This is not just a structural or reorganization, it is a strategic imperative step designed to unlock shareholder value, create business clarity and position the resulting entities for sustained long term growth. Let me explain the rationale a bit in detail. This initiative is driven by certain important factors that have converged to create the optimal conditions for this step. First, the takeover of REL by Burman Group as promoters. This development brings in decades of institution building experience with top notch governance and a proven legacy of value creation. The group’s takeover was followed by capital raise announced earlier which takes care of the funds requirement for the businesses for the foreseeable future.
That’s the second part and that takes care of the capital. And thirdly, businesses as they grow and reach a certain scale, demand specialized focus. We are now at an inflection point where each piece requires and will require dedicated strategic attention. Each business also operates with different capital requirements, risk frameworks, manpower, talent and growth trajectories. Coming back to the presentation, I am referring to slide 36 which is just a refresh of our current corporate structure. As you see, the promoter group on a fully diluted basis after the conversion of recently issued warrants shall hold 29.75% in whereas the public continues to hold will continue to hold the remaining 70.25.
And as mentioned earlier, we have care on one side as an insurance segment and we have NBFCs, RFL and housing one below the other and broking as financial services segment. Just to remind, as far as REL is concerned, its stock is listed on BSC and NSC whereas RFL is an unlisted entity and it is registered with RBI as a middle layer category NBFC. Now if you see slide 37, this demerger is built on four pillars. First, streamlined business focus and simplified structure. The segregation of financial services from insurance. Business. Is to create a focused entity with specific business model, growth strategy, capital deployment and performance matrices for the teams. Secondly, unlocking shareholder value through a separate listing. The independent listing of RFL is expected to unlock shareholder value and enhance investor participation. It will facilitate targeted capital raising for this business and enable more efficient allocation of management resources thereby supporting sustainable growth and long term value creation by this newly created company. Third, the focused management attention and talent alignment. Post demerger each entity will have dedicated leadership teams. The leadership teams are already in the hiring mode.
They’ll require sharper operational alignment and clearer strategic mandates. Decision making has to become faster. Strategic execution has to become more focused. Market responses has to become nimbler. So with these objectives in mind, there was a need to bring in this clarity. This will also help us set up the objectives for the new incumbents as we hire the senior leadership for different components of the business. Fourth, enhanced risk management and compliance. The Demerger enables implementation of specific risk management policies and internal compliance frameworks tailored to each business segment. This improves monitoring and control of risk associated with them.
Now moving to slide 38 let me just outline the proposed structure more clearly. This is Demerger of Financial Services Business from REL to RFL Pursuant to proposed Scheme of Arrangement, the lending, broking and ancillary support services held under REL shall be demerged into RFL on a going concern basis. The investment in care shall continue to be retained in REL as a consideration for transfer of financial services business. RFL will issue fully paid up equity shares to the shareholders of REL in a 1:1 ratio. For every equity share held in REL there will be one RFL share issued upon implementation of the Scheme.
The RFL shall thereafter will also be listed on the bourses. The current registrations of REL and RFL with various regulators shall not undergo any kind of change. So what does this result into? This creates two parallel focused organizations with independent governance, capital structures and growth mandates as detailed on slide 39. On financial services side, while the promoters and public shall continue to hold shares in the ratio as mentioned, the resulting entity RFS shall have religear broking as its direct subsidiary. It will also have Religion Housing Finance, which is already its subsidiary as another fellow subsidiary focusing on affordable housing finance.
As mentioned earlier, we aim to list RFN in the first quarter of FY 2028 after the completion of the process for the remaining REL is as it exists today. The listed entity shall continue to hold its entire stake in Care Health Insurance as it does today. This demerger will be implemented through a scheme of arrangement under sections 230 to 232 of the Company’s Act 2013 and other relevant provisions of the act read in conjunction with them. The Scheme shall also require various regulatory approvals as well as shareholders and creditors approvals. The Company expects the entire process to take 15 to 18 months starting from the current quarter and shall culminate in the first quarter of FY28.
The detailed timelines can be referred to in slide 40 which is there before you, with various steps being appended alongside. We believe that during this period there will be no disruption to operations, no impact on customers and no change to employee continuity. We are committed to ensuring a seamless transition with complete operational continuity. Just to reiterate, post demerger, each business will have a clarity and focus to pursue its own growth path. This is has been resulted after comprehensive evaluation of various structural alternatives which were discussed with leading advisors. The Board concluded that this particular initiative and option represents the most efficient and future ready structure for our next phase of growth.
Any future fundraising as and when required will be undertaken based on business growth plans, capital requirements and strategic opportunities and will be subject to necessary corporate and regulatory approvals. Just to summarize, we are creating a simplified structure with independent business segments concentrating on their core competencies. We are unlocking shareholder value through separate listing that enhances investor participation and enables targeted growth. We are enabling better management alignment with sector specific talent acquisition and performance link rewards. We are implementing enhanced risk management with tailored compliance frameworks and strengthened governance. And last but not the least, we are executing this transformation backed by a very strong commitment from the Board and the promoter.
I thank you all for your continued trust and support and we look forward to engaging with you as we move forward in our journey. Thank you so much. We are now open to any questions you may have. Over to you Mansi.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Umang Shah from Avenders Park. Please go ahead.
Umang Shah
Hi sir. So firstly congrats on the demerger proceeding and my question is related to that only. So I mean I’m a bit puzzled why we chose to demerge financial services and not care directly. Because when we talk about value unlocking most part of Holdco or discount that is there on care in our overall financials that could have gone away directly. So any specific reason why we chose RFL and not to demerge Care separately?
Pratul Gupta
So Umang, we have not demerged RFL as such. We are basically demerging the entire financial services business of rally gear into RFL1. Secondly, this is a step in the direction or let’s say this is the path towards the final outcome wherein we believe that each business needs to operate independently. However, the current consideration before the board allowed us to take this first step and possibly in future we will take some incremental steps to complete the, you know, the demerger in the incomplete sense in terms of insurance business as of now the structure is that the listed entity REL will continue to hold the entire shareholding of care.
Umang Shah
Right sir. So we are planning reverse merger with REL in future after this demerger. I mean we could have incorporated that in this scheme of arrangement. So any specific reason why we chose to Postpone it after 18 months?
Pratul Gupta
Well, I think this is as I mentioned, this is the first step in that direction. And as and when the conditions are conducive and there are certain other milestones which are achieved by these businesses, we could be evaluating such options in future.
Umang Shah
Okay, sir. Okay, okay. No, so I had my question only related to Dimas. Otherwise business is absolutely, you know, it’s in your control. So I don’t have many questions over there sir. Great. Thank you sir.
Pratul Gupta
Thank you. Thank you.
operator
Thank you. The next question is from the line of Adarsh from Meena Maced management. Please go ahead.
Adarsh
Hello. Hi. So just a follow up on the previous question. Is it safe to say that while you can’t. You know, you’ve not put. It out but there are precedents now to Max Financials opting to reverse merge the life company into the holdco? Is that the structure that eventually is. So some investor in religion does have access to CARE directly. Is that the final outcome? Is that a fair assumption to make?
Pratul Gupta
Well as I mentioned others, I mean we will decide about future course of action as and when conditions and situations are conducive. There could be many possibilities. As of now our endeavor and this particular step where it has brought us to is that in the resulting structure religious enterprises would just be holding one asset which is care. So that itself and the fact that, you know there will be an issuance of RFL equity as well that itself should be value accretive for the shareholders in the future. We could be looking at various options including the one you mentioned.
But the current thinking is to first implement this particular scheme in next 15 to 18 months.
Adarsh
Got it sir. And the second thing is the inclusion of 1500 crores has that money come in and in what form it was put to use which Businesses have have got the capital. If you can just highlight that.
Pratul Gupta
Sure. So out of 1500 crores of warrants which we raised so far as of the end of the quarter we have received 410 crores which included 375 crores of upfront premium and another 35 crores of conversion of warrants out of this 410 crores. 256 crores has already been infused in care by way of subscription of rights issue which the company had opened. And the rest of the money has been given to other subsidiaries including Broking and Housing in the form of loan apart from a part of funds which has been utilized for operations of relation.
Since you mentioned the figure of 600 crores let me clarify and assure you here. Whatever money has been envisaged for different businesses in our shareholder resolution for warrants issue, all that money is part of this implementation scheme to be directed towards those very subsidiaries. So there is no change of plans there. And as advertised CARE will get an investment of up to 600 crores as per the original plans.
Adarsh
Got it. And sir then I just. If you can lay out over a 23 year period for the broking, NBFC and the housing business what are the broad aspirations plans over two three year period. You do have unutilized equity there and we are talking about another 900 crores which is 1500 minus the 600 crore. So it’s a lot of equity in the Broking or NBFC or the hfc. So if you can just highlight what the plan and the use of capital there would be.
Pratul Gupta
So I think during my narration I did mention that the leadership for these businesses is coming into place. But very broadly what I can tell you is that most of the accounts are right now unleveraged. So if I look at religious invest limited we are sitting on a cash of 500 crores completely unleavened. So as and when we start the business with new leadership team coming in place we are definitely looking at levering this to industry standards in next couple of years. That’s the aspiration. In terms of housing again right now we don’t have any lending lines and we have aimed to infuse a large sum up to 250 crores in housing finance.
So there also we are taking steps to start leveraging there and get banking lines and expand the franchise to a much larger number. In terms of Broking we just have the company of Vijay. He is right now evaluating the business on a 360 degree basis. And I am sure by the time we interact next time we will have more details on our side to discuss in terms of brokings expansion plans.
Adarsh
Perfect. This is useful. Thank you.
operator
Thank you. The next question is from the line of Nitin Dharma Withem Capital. Please go ahead.
Niteen S Dharmawat
Yeah, thank you for the opportunity. Am I audible?
Pratul Gupta
Yes, please go ahead.
Niteen S Dharmawat
Yeah, so actually to see the demerger scheme and the things that you explained, you mentioned that that there are certain parameters and certain milestone that you would like to see before, you know, next steps can be taken. So can you elab more on that? What are the things in your mind before you take up the next steps?
Pratul Gupta
So. Well, I mean some of the milestones pertain to, you know, how we sort of grow this business and what is the growth trajectory we are looking at. What kind of holding structures are there? So there is a promoter group above relegate enterprise. We also need to see what are the regulatory thresholds we need to sort of keep in mind in terms of minimum shareholding requirement. So some of the considerations need to be in place before any incremental steps could be taken in that regard. But we thought and we evaluated that this is a good, credible first step in that direction.
Niteen S Dharmawat
I got it. So do we have any doubts about the growth trajectory? That’s why we are thinking in this way. Are we too conservative in taking the decisions?
Pratul Gupta
Well, I would not say that we are conservative, Nitin, in terms of taking the decisions. But we want to take the decisions after thinking hard and making sure that the decisions are right. So the idea here is that we evaluate each and every situation with complete 360 degree approach and thereafter we implement it. So that’s the approach the management and the board has so far.
Niteen S Dharmawat
Okay, got it. Wishing you best.
Pratul Gupta
Thank you.
operator
Thank you. The next question is from the line of Yash Bhandari from Neo wealth and Asset Management. Please go ahead.
Pratul Gupta
Yes, Yash.
operator
Yash Bhandari, please go ahead with your question. Your line is unmuted. As there is no response from Mr. Bhandari. We’ll move to the next question which is from the line of Eitendra Pradhan from Maximil Capital. Please go ahead. I’m so sorry to interrupt you. We are unable to hear you clearly.
Hitaindra Pradhan
Is it better now?
operator
Yes. Mr. Pradhan, please go ahead.
Hitaindra Pradhan
Yeah, so first question on the demerger. So I think there is a IRDA requirement of promoter shareholding which I think along with the private equity investor at the care level, we could have probably met with the fund inclusion also happening in place in rel so was there a reluctance on part of the private equity investor to be the promoter for CARE because of which we could not have done the overall demerger in the way it would have captured the entire value.
Pratul Gupta
Well, without specifically commenting on a particular stakeholder or you know, participant, what I would like to say is that there are certain conversations, certain situations which need to be sort of achieved before we take that step. So you are right in terms of the fact that the look through shareholding of the promoter group today in care is at around 18 to 19%. However, there are there is a thinking to move ahead on that and at an appropriate time we will be able to come back to the shareholders with the decisions about it.
Hitaindra Pradhan
Okay. Secondly sir, with I, you know there was this ongoing case with LBB fixed deposits which were sort of captured by them. So what is the current status of them? Because I think LBB has been taken over by DBS. And so when you report your net worth as 800 crore is it what happens to that 700 crore? Is that something that we are going to collect and then that will add to this network or what is the situation there?
Pratul Gupta
So as far as LVB is concerned it. So the matter is subsidized right now in Delhi High Court and the LVB has been replaced by DBS since LVB was taken over by dbs. So DBS has replaced LVB in the court in terms of any resolution I think we are still some distance away and the matter is being taken up in Delhi High Court right now.
Hitaindra Pradhan
No. So this net worth of 800 crore is assuming you have already provided 700 crore for the LVP account.
Pratul Gupta
Yes. Yes. We have already provided for LVB project. We are not anything outstanding in books of account. The 800 crore network is 4 and above this. Yeah. So entire FD amount of 750 crores has been provisioned in RFL books.
Hitaindra Pradhan
Okay. And roughly at the RFL level now you had so many bad loans. So what is that collectible pool in totality and what are we planning to do about that? So what is the expected recoveries from those accounts? Let’s say on a per year basis going forward.
Pratul Gupta
If you see that in our presentation the a from the SME book is 70cr rupees and whatever the BED loan which are there we are in the already in the case with lot of litigation is there. So we are fighting in the gate and as and when we are get the favorable order from the court we will recover from the money from the all the litigations. On a conservative basis. Hitendra, just to add here, while the current cash position of RFL is above 500 crores and the good book which is left behind is around 70 crores then there are certain accounts where there is a view that there could be certain recoveries if we step back into the corporate loan book side.
That entire corporate loan book has been so far provision. However, there is a dedicated collection team which is making efforts and looking at various options in terms of recovery. However, at this point in time we are, you know, not in a position to give you any target recovery number here.
Hitaindra Pradhan
Okay. Enter IFRS results of for the insurance company. So normally, you know, some of our comparable companies are giving out IFRS 1 by N and width and everything. In our case we have given some operational parameter without one by N and then we have given if India. So what are our IFRS numbers? If it would be great if it can be put in the presentation going forward but as of now for the 9 month FY 26 and 25 what is our IFRS? Pat.
Ambrish Jindal
No hitting the hi, I’m reached this side. So within the process of preparation these IFRS numbers and maybe, maybe from next quarters or next to next quarter we will be publishing those numbers.
Hitaindra Pradhan
But roughly, can you give us an idea of what is that number right now?
Ambrish Jindal
No, I think I’ll still say that we are in the process of preparation of those numbers so would not like to comment on that.
Hitaindra Pradhan
Okay. And sir, finally on the broking piece, so normally you know, all the brokers, you know, trade at very high ROE numbers and in our case it is single digits. So you know, is it because we are very suboptimally utilizing our expense base as of now and what is the program to sort of increase it to let’s say 25, 30% ROE number which is very common amongst brokers.
Vijay Kumar Goel
Okay. On broking side, yes, we need to definitely increase the productivity of the infrastructure that we have and there is definitely a scope to do that and going forward we are going to work on that. And what was your second question about this infrastructure?
Hitaindra Pradhan
So basically we are having 6, 7% ROE. Right. So I wanted to understand is there a pathway and how quickly can we go to a normal ROE for a broker which is in the vicinity of 25, 30%.
Vijay Kumar Goel
That number we have not done as of now as Pratul mentioned that I’ve recently joined and I’m just understanding the business right now and we already have a large client base and our active client ratio is less than the market. I Showed a number that industry level. We have 21 core team at accounts and about 21% are the traded clients. For us that number is about 14%. So there is a headroom available for us to increase our active client. That’s straightforward resulting into the business growth for us. The ROE numbers we have not worked out right now.
Our priorities remain to improve our digital offering as well as our presence in our large cities and work on the productivity of our resources that are already deployed in the business. I don’t know, but we’ll take some time before we start working on the roe.
Hitaindra Pradhan
Okay, thank you and all the best.
Vijay Kumar Goel
Thank you.
operator
Thank you. The next question is from the line of Ravi Purohit from securities Investment Management. Please go ahead.
Ravi Purohit
Yeah, hi, thanks for giving the opportunity to ask question. Congratulations Patul on the, on the restructuring announced. Just you know, follow up on the earlier participants questions on, you know, the way we have structured this. So IRD I think has some ruling of, you know, 25% being the minimum shareholding required to be classified as promoters. And I think you just mentioned that the Berman family, you know, at the current see through holding is about 18, 19%. Is it fair to assume that they will have to increase their stake in REL itself to basically qualify as a promoter of care health at a future date, if at all, once that has to be merged into this.
So is there an intent on that that if you could just share.
Pratul Gupta
Ravi, thanks for joining. I mean, I can’t comment on behalf of promoters here, so I think this is a question best left to the wisdom of promoters here. What we understand is that REL will continue to be promoter of care as it has been so far. And any kind of future thinking is a prerogative of the promoter group. And I think at a point in time they shall come back to us through the board with their state of the art thinking is what I said observe right now.
Ravi Purohit
So Patul, just one request. Since this handover or the takeover has just concluded, right, it’s been like 2, 3/4 now, is it possible for the Berman family to also kind of join one of the calls, if not all the calls, just to kind of share with the shareholders their long term vision because you know, this company has been kind of under hammer and battle for the last, I don’t know how many years now. And it’s just like finally some path is being kind of drawn for its future. It could have been helpful if the Berman family, one of the members could at least have like one call or interaction with investors just to kind of share with them what is it that they’re thinking, what is it that their long term vision about this company, they hold stakes in Aviva like they hold stakes in general Sampo insurance side.
So there are a lot of smaller stakes that they own where they are not promoters of those insurance businesses. So is this like just another of those or is this something that they are seriously looking at building over a long period of time? If you could just share our message and concern to the Benman family and request them if they can participate in one of the calls and just share their thoughts with the investors, it would be great.
Pratul Gupta
Sure, your request is noted and it will get communicated to the promoter, I can assure. Thank you sir.
Ravi Purohit
And so next question is on care health insurance and I think one of the participants that also asked about IFRS numbers, again that is so you know in one of the slides we have discussed without one by N where our profit before tax for the first nine months is about 265 odd crores whereas on a one by n basis there is actually a loss right now. Right. So is it. So while we understand that the IFRS numbers are still not done, but typically what we’ve seen is the IFRS numbers generally tend to be slightly higher or significantly higher than the reported numbers.
So is fair to assume that the IFRS profits and IFRS numbers are better than what we’ve reported on without one by N basis. And is it a business which actually makes a decent roe, double digit ROE as we speak today or is that. That’s not the case as of now.
Pratul Gupta
So on roe, I think in the previous three full financial year our ROE was always in the range of mid teens. This year, as you rightly mentioned, the numbers are 265 crores on a full piece basis against 92 crores. But again on IFRS numbers again will not be able to comment on that. On the assumption that the numbers would be higher than the numbers reported on a full premium basis. So we will come back to you on that once the numbers are ready.
Ravi Purohit
Okay. Okay. Just one request. Same Pratul, just like you know, for what we mentioned about religion. If Anuj can participate in one of the calls and share his wisdom and he’s been one of the promoters. Promoter, Founder, not promoters, I would say founder, you know, investor, CEO, MD of the company and has kind of set up this company, you know, ground up. So it will be great to hear his vision also. Right. For incoming shareholders. See religion has a very very long history and baggage. Right. So it Helps and gives investors also something to kind of look forward to when they straight from the horse’s mouth what their long term vision is.
And these guys don’t have to come every call, right. But they can just come once at the beginning of the journey and express their thoughts and vision with shareholders. And I think it will be a great initiative. You are already doing a great initiative by holding these con calls such early in life. Corporate life of religion and the new management I think is one of the calls someone from the Berman family and Anuj can come and address the investors. That will be great. Think it will go a long way in kind of, you know, us being able to share their vision of what they want these companies to become over a five, ten year period.
Pratul Gupta
Sure. Ravi, your suggestion is again noted and we will make sure that it is communicated to the management definitely.
Ravi Purohit
Okay, sure. Thanks a lot and I’ll get back in the queue.
operator
Thank you. The next question is from the line of Vikash Srivastava from RBC Financial Services. Please go ahead.
Vikash Srivastava
Yeah, thank you for taking my question. So my understanding clearly of the IRDA law is that for a reverse merger there has to be a promoter with 25% so every which way this reverse merger cannot happen till the promoter owns 25% of, of care. And as of now the look through is only about 19% that I’m just making a statement and would you confirm. That. That’S the law?
Pratul Gupta
It’s established law.
Vikash Srivastava
So it’s established, you know, many of us investors are not clear on law. So we, we need it. My second question was on the stock options of the erstwhile CEO. If there’s any progress, what is it worth or you know, in terms of percentage of care and in terms of clawback and the case going on. If you could provide us an update. The second question on insurance was, you know, there seems to be a little bit of worry in the investors mind on you know, IFRS numbers not coming and insurance business not doing too well.
If you could kind of say is this just a procedural delay? Because post all this happened, is it just a procedural delay and how are we doing as compared to the industry both in terms of growth, in terms of costs, etc. If you know some kind of comfort without giving specifics as to how is the care insurance business doing? Those are the two questions on the insurance business.
Ambrish Jindal
Well, so I’ll get care management to respond on ifrs. But before that, since you mentioned about the esops of Erswise chair, I presume that’s the query you have and the matter right now Prakash is subjugious as of now what we understand is that there is an IRDI ruling on that and matter is lying in courts. It is public knowledge that ESOPs to the tune of more than 2% of the equity of care health insurance was granted to her. And we also understand that the 1/3 options which was exercised by her currently are something which is a subject matter of discussion in the course as well as with the agencies.
The unvested unexercised portion which is 2/3 of the ESOPs is something you know. So there is no transaction which has happened as far as those ESOPs are concerned to comment on. Yeah now on the. On the performance Prakash. So as we presented our numbers on a full premium basis which is without one by N because one by N is just an accounting change and we also take all the calls. This is full premium basis. So as we highlighted our growth on a full premium basis is 27% on a total GWP. Our retail health has improved by 41% in this quarter which was a significant growth as compared to previous quarter.
Our profitability numbers they were 265 crores and our combined ratio has also improved by 110 basis points. So all financial metrics if you look at it the way we used to present our numbers earlier they have been improving or they have improved in this financial year and on the EUM side it is coming down it has reduced by 150 basis points and we are also well compliant with the UM regulations as well. So as as far as the performance of the business is concerned we are quite satisfactory with the way businesses do.
Vikash Srivastava
That is comforting. My name is Vikas. Now just coming to the demerged part of the business I’m again reconfirming what I understand is that no legacy amounts are still in the balance sheets as assets they have all been written off. Whatever we recover would be a bonus. And just back of the envelope, you know totaling I was doing while you were speaking earlier is my understanding right that the non after writing off everything the db, the Lakshmi Villas bank and all the earlier loans the book value of your demerge business is about 70 to 90 rupees a share.
Is my understanding would that be right approximately give or take 500 crores here or there because you’re it and also also Sorry let me just complete also would that include the. I’m assuming out of the 1500900 crores is going to come. You said 600. You’re allocating to the insurance business so that all the other 900 would come to the demolished entity just before and after with the 900. Without the 900 what is the book value of our assets there in the sense that what is the cash? What is the surplus cash there? Are we with this, with or without this 900 on all these companies combined?
Pratul Gupta
So Vikas, as I mentioned it will be difficult for me to give you the share price of the resulting company. What I can tell you right now is that RFL currently is as I mentioned earlier sitting on a cash of 500 crores. Plus the total net worth is 800 crores. Plus the net worth of religious broking is over 3 and 350 crores. It is approximately 366 crores. In case of RFL housing is assumed there. Then on top of it, you are right. A large part of 900 crores is going to flow towards financial services business.
So apart from some operating expenses the remaining amounts shall flow towards financial services.
Vikash Srivastava
So I was not asking you for the share price. I was only talking about network. I got that. So that pretty much you’re right.
Pratul Gupta
Because directionally you are right. But I mean I leave the back of the envelope calculations to you. I would ideally like to come back to you with more precise numbers sometime later in future.
Vikash Srivastava
I appreciate that. Now last question, you have been very helpful. So just this last question, you know, last call you said that with DB taking over LBB and again, you know, this LBB though it is, you know, it is subjugish. There is also been a, you know, there’s a commitment that 50% of the, you know, this was an FD and interest. And you did mention on the last call that we have a very strong case and BB being a stronger bank. You did express an opinion that your case was very, very strong. Is there any possibility of an out of court settlement? Are we discussing it or are we just going hammer and tongs since our case is so strong, Are we going hammer and tongue on the high court case? Is it also that since it was a FDA with a coupon rate, the interest, the probability of getting interest is high.
And my last question on this is that you have, you know, you have a transaction with 50% of the principal of Deutsche Bank. Sorry, 70 and 50% of the interest has to go to, has to go to the erstwhile lenders with whom you made a settlement. Even if I reduce that, that amount also comes to about. Again back the envelope and you don’t need to comment on it. Is about 700 crores. Our share relegated shares of 450 plus 250. Even this one, I’m assuming if, if and when it comes it would also accrue to the.
It would also accrue to the, to the other, you know, to the demerge business.
Pratul Gupta
So I, I mean I’ve got the general counsel Babu here with me and I would actually request him to give his observations as far as DBS matter is concerned.
Vikash Srivastava
Yeah. Maybe the numbers you could comment on.
Babu Rao
Sure, yeah. Not be numbers commenting. See the thing is first of all I think these are all written off accounts right. From our books. Actually it has been already told. So matters are subsidized and we are putting companies putting all efforts to recover its money. Right. Whatever. We’ll get it. And in that process we can. That can be you know, out of court settlement or within the court, whatever it is. We are open but at appropriate stage I think we’ll be you know considering all those options. And secondly on the missing recovery, I think we as you already, you know sort of noted that it is actually we have a strong case.
We will be I think trying putting all our efforts to recover the money fully. And third point is that on the sharing of the missing money, some money to banks and all. As for the agreed, you know, agreements, terms of the agreement, we will be honoring those commitments also that you have to.
Vikash Srivastava
Which is. Which is fair. Got it. And the numbers. The numbers. If I ask you does somebody made a calculation that what is our share with that accrued interest till date the principal and interest what is what he.
Babu Rao
Can calculate anything and everything. Unless and until we see the color of the money then there’s no point. In the color
Vikash Srivastava
as an investor, Mr. Baby Color. That is why investor invests for future probability.
Babu Rao
I agree. But the thing is
Vikash Srivastava
the money. Yes, will come.
operator
Sorry to interrupt you Mr. Srivastava. May we request you to please rejoin the queue. We have participants waiting for the.
Vikash Srivastava
Thank you. No, thank you very much. This very helpful.
operator
Thank you.
Pratul Gupta
The next question, I’ll just make an observation here. Let’s see some progress and then have this discussion. Thank you so much.
operator
Thank you. The next question is from the line of Rohan Jains from Blue Nile Capital. Please go ahead.
Rohan Jain
Yeah, thank you for the opportunity. Am I audible?
operator
Can you speak a bit louder?
Rohan Jain
Yeah. Am I audible? Now
operator
Go ahead.
Rohan Jain
Yeah, I had a question regarding the lending and broking businesses. So with regards to those two businesses, are we largely done with the leadership hiring there or are there any further, you know, leadership hiring Left in those two segments. And again what kind of scale up are we seeing do we foresee in those two segments? You can just share some more qualitative color on what is the plan for the ramp up of those two segments please.
Pratul Gupta
So. So. Well, as I mentioned, Vijay is already here as far as Broken is concerned and some more leadership hiring is in the offering. You will hear from us very soon both on broking and lending pieces. As I mentioned that we are looking at industry leaders who approach the business in a bit of an entrepreneurial way and have long term commitment to expand the franchises multifold. In terms of our targets for expansion, we would let the new leadership decide what could be the milestones or goal posts as rally gear. We are committed to provide the capital and the right platform for these business leaders to grow the business.
As I mentioned earlier during my narration, both broking and our MSME lending business can be leveraged much more. And as we move forward we would like to utilize that opportunity and expand the franchise multifold.
Rohan Jain
Thanks a lot for the answer and small request. As one of the earlier participants had highlighted, it would be great if Mr. Anujagulati and or the the Dabur promoter family, they could join the call and you know, share their thoughts on how they look at their respective businesses going ahead. It would help us as you know minority shareholders better understand where you know the business is going in the next few years. And secondly in the IFRS bit as well if you know disclosures can be improved not just with regards to ifrs but if I were to compare your deck with those of your peers when it comes to the insurance piece, there’s a lot of I think gap there as well.
If that can be covered up also it would be really, really helpful with regards to other disclosures within the insurance business itself. That’s all from my side. Many thanks.
Pratul Gupta
Sure. Sure. Thanks Rohan. All suggestions noted and we will come back to you.
operator
Thank you. The next question is from the line of . Please go ahead.
Chintan Mehta
Thank you so much for the opportunity sir. So my question is regarding share of the threat of large equity dilution. It’s a demons entity of NBFC division. So for example last equity dilution. Because of
operator
Mr. Mehta we are unable to hear you. Sir, your voice is breaking.
Chintan Mehta
It’s not. How loud and clear. Hello.
operator
Yes, please go ahead.
Chintan Mehta
Shareholder threat of large equity dilution. It really get NBFC division. So for example last equity dilution of 1500 crore. We have taken it 2.7 to 3 book value. But if demerger of financial services into separate entities and it does not have a right equity listed valuation then we need to make a very large equity dilution, the very low multiple. So how we are going to mitigate that risk if you can broadly explain it, it would be great.
Pratul Gupta
So if I have got your question right, you are possibly asking about any future dilution on the financial services side. Right. So as I mentioned earlier in my narration that the. The financial services pieces are very well capitalized and we did the last fundraise by way of warrants preferential very recently and the warrants conversion, a significant portion of it is yet to happen and the money is targeted towards the stated end goals. So the focus for the management right now is to utilize that funding to grow the business, expand the franchise and then look outside for any kind of a strategic capital.
So our belief is that we will make these businesses scalable and at an appropriate stage we will step out for any incremental fundraise as and when required which will be value accretive for all the shareholders.
Chintan Mehta
So before the demerger, what is the um target we are expecting or something in the next 18 months? Because that will set up our base to take further dilution if needed.
Pratul Gupta
So as I mentioned, I mean if we look at rfl, we are yet to restart the business and there is enough capital to do so and then we have the ability to leverage that further. So we would take those baby steps and look at the first 18 months in terms of growth trajectory. And once this scheme is implemented then we will chart out our incremental capital raise plans and come back to you for the same.
Chintan Mehta
So in this particular date when we are going to first disbursement of the new division, any next one quarter, next two months or something.
Pratul Gupta
Sorry, I completely missed the question.
Chintan Mehta
So when we are going to start a disbursement in this NDFC division?
Pratul Gupta
As I have been mentioning that, you know we are just getting the leadership in place. You will hear from us soon. Once the leaders are there then the business plan shall be there and we will announce, you know we stepping back into the market as far as MSME loans are concerned on the housing front. We continue to be in the market and disperse the loans.
Chintan Mehta
Possible in next three, six months or any. You are talking about too long. I mean you have taken control of last 20 years or so. So.
Pratul Gupta
Well I. I mean Chindan, I can’t really comment on month, on month or quarter, on quarter expectations. But as I said a Lot of legacy issues are out. There is much more regulatory clarity. If you see we achieved our cap removal a couple of quarters back. There is a collection machinery which is already working overtime. So to our mind we are sort of seeing convergence of various efforts and it should finally culminate into a tangible startup of the business very soon.
Chintan Mehta
Okay, thank you so much, sir.
Pratul Gupta
Sure. Once we, once we have decided and we sort of take those steps, definitely we will be communicating the same to the markets and to you. Definitely.
operator
Thank you. The next question is from the line of Sugandhi Sood from BTH Partners. Please go ahead.
Sugandhi Sud
Thank you for taking my question. This is with regards to the insurance business and I’m referring to the public disclosure that does in line with other insurance companies. If I look at the numbers on a quarterly basis there seems to be a deterioration in the claims ratio and even on a nine monthly basis the pat numbers that I see in the quarterly disclosures are. I’m not able to reconcile them with the numbers in the presentation. So on my rough calculation the combined ratio quarter on quarter has gone. The claims ratio on quarter on quarter has gone from 70 to 75%.
So you know, if you could just. And also the solvency I wanted to understand in insurance, you know how comfortable you are with this level and you know, post the capital inclusion, you know what in your calculation would be the solvency ratio.
Ambrish Jindal
Yeah. Hi. So the numbers that you are referring is on a one by N basis wherein we are seeing that because of this accounting impact of 1 by n which I mentioned in my presentation as well and because of the deferral of premium which is resulting into lower net earned premium, we are seeing these elevated numbers on the claim ratio side as well and on a combined ratio side as well. But when we look at our numbers on a full premium basis, all the financial metric you are seeing they are much better as compared to previous year.
Be it combined ratio, be it expense of management ratio, be it profitability, be it growth, be it retail book growth and be it expense of management as well. So on a one by N basis the numbers it is only a transition impact because which I gave an example as well in my opening remarks as well that if a business which is to be rupees for 3000 rupees is a long term business, earlier we were allowed to book entire 3000 rupee. Now we can book only 1000 rupee and hence the 2000 rupees. So as on date close to 1400 crore is deferred on the premium side which is which is which has given a negative impact on our earned premium and hence we are seeing these elevated numbers but on a full premium basis.
The way we take all the decisions in our organization, all the financial metrics they are looking. You can refer our presentation as well which is on slide number 14 and you will be able to see all the numbers on a full payment basis.
Sugandhi Sud
Have you disclosed the number on. On the basis on which the regulator has mandated in the current presentation? Could you refer to a slide which is more like for. Like in line with you know what other players report?
Ambrish Jindal
Yeah. So slide number 15 is the numbers which are basis 1 by n. Wherein for this quarter as you’re mentioning the clean ratio is 75% and for the nine month ended the claim ratio is 74% and the combined ratios are also 111.1% against 101.1% on a full period basis. So this is the slide wherein which is as per the regulatory accounting.
Sugandhi Sud
Sure. And are there any one offs in the other expenses? Because I noticed that there is a spike in the GST process that is that a one off number? I mean it’s about a 2% impact on your expense. 2% as a percentage.
Ambrish Jindal
So one of number is only. Only with regard to the labor code impact which is 13 and a half crore. The impact on the GST I’ll say is coming out of the distribution cost wherein the distribution cost has reduced and the expense is being shown as a GST expense in the public disclosure. But it does not impact the financial position of the company and also at the same time does not impact the distributors as well since we are seeing the elevated number of policies elevated number of growth which is seen in this quarter. So I’m sure that on the distribution side as well distributors income will also not get affected on a long term basis.
So this 58 crore number which you are referring on a GST side is not a one time number. It is only coming out of the distribution cost only which is because of this GST exception.
Sugandhi Sud
Sorry. So on an ongoing basis we can expect the expense ratio to stay at the current level as. As the previous quarter.
Ambrish Jindal
So on an ongoing basis. Very difficult to comment because the expense ratio depends on a various factors. So in case there is a. There is a heavy growth on the retail new business type and the expense ratio tend to improve. So I think the right metric is to look at the combined ratio which is the right metric to look at it. But yes, on a steady state you’re right in saying that the numbers should be in the same range or should, should reduce slowly. Should keep on reducing slowly.
Sugandhi Sud
And on the solvency margin, you know, post capital infusion, you know, where do you expect it to, you know, be closed and does it, will that leave room for growth for you know, how many, you know, years you think that would be enough for before you need for the capital inclusion?
Ambrish Jindal
So I think we will continue to, we are comfortable at the range of 1.7. So we’ll continue to maintain in the similar range of 1.7 to 1 or above 1.7.
Sugandhi Sud
Suppose capital is. You are saying that that would suffice for, you know, for managing the current growth rate, you know, without needing, without risking a decline in the solvency margin.
Ambrish Jindal
No, no, I’m not saying that. That without any capital infusion we would be able to.
Sugandhi Sud
I’m asking POST the 600 capital infusion that was outlined before.
Ambrish Jindal
So I think we have, we have, we have various options to maintain the solvency. We can, we have a net worth of close to 2 equity of 2000 crore. We can sub debt up to 1000 crore. And as Pratul also mentioned that out of 600 crore to 50 crore has been infused in care, health insurance. So I think there are plans to take care of that. But the solvency will continue to maintain solvency at 1.6 or upwards of that.
Sugandhi Sud
Thank you. So that’s it from answer. Thank you.
operator
Thank you. Ladies and gentlemen. Due to time constraints that was the last question for today. I now hand the conference over to management for closing comments.
Pratul Gupta
Thank you. It was a very delightful session we had with investors and I thank everyone for taking out time and listen to us understand our journey. If there are any queries further there are contact details in the presentation where you could send in your queries and we will be happy to respond. We look forward to our continued association and hope to see you next time with our year end FY26. Thank you so much. Back to you Mansi.
operator
Thank you on behalf of Relicare Enterprises limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.