HDFC Life may launch blockbuster products in Q3: Vibha Padalkar

HDFC Life will maintain its leadership position in terms of topline growth, profitability and on the front of innovation in the future, says Vibha Padalkar, Managing Director and CEO, HDFC Standard Life. In an interview with Swati Khandelwal, Padalkar said, "HDFC Life will launch a few blockbuster products in the next two quarters of the fiscal year."

What according to you is holding growth and how are you dealing with the ongoing slowdown?

We have seen a trend in which different businesses such as life insurance, react to uncertainties differently. It is happening, may be, because the products being sold by us are just not investment products. And, average Indians are aware of the fact that there is a need for protection especially when times are difficult. That's why they are getting less confused about either the product is for investing purpose or protection or retirement purpose. People are more receptive to buy these products, especially when times are hard.

Your company has reported very strong growth in VNB margins (insurance business metric) in the first quarter. What is your outlook on the margins?

HDFC Life will maintain leadership position in terms of topline growth, profitability and on the front of innovation (product and technology innovations) and that's what is important. Our new products that the average Indians haven't seen - in the space of health, protection, retirement and interest rate guaranteed savings - have been well received. In the rest of the two quarters, we will come out with more products that will be blockbuster.

You have maintained that you are open to inorganic growth opportunities. Do you see opportunities/value to increase your portfolio in an inorganic manner?

Yes, we are very keen to look at inorganic opportunities and we have funds as our stock has done well. Thus, this is the right time to look out, but we are careful as to what kind of deal will be made as we don't want to inherit someone else's problems or inefficiency. If the company and its embedded value are good as well as have a bank assurance tie-up then we are happy to look at it.

As a woman leader will you like to talk about certain steps that your company has taken and works around women diversity, equality and pay parity among others?

A lot of things, in fact, we would like to believe that we have made a lot of progress in the financial services space in ensuring that middle-management women, which has the highest drop-out rate, do not drop out. I will give you a few examples, including after child delivery we allow women to take on half-pay to work from home and have flexible hours. We have confidence that women will not misuse this opportunity and come back after their kid is a year old or more into full-time employment. We have an in-house creche and provide drops to the nearest railway station. In sales, we are beginning to target women as we have noted that in that case persistence is the highest while mis-selling complaints and attrition are lowest. Thus, women do very well at every parameter of health indicators of a business. Thus, we have a special focus on the recruitment of women, nurturing and retaining them.

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