### **1. Company Overview** Sammaan Capital Limited (SCL), formerly Indiabulls Housing Finance Limited, is one of India’s largest mortgage-focused Non-Banking Financial Companies (NBFCs), regulated by the Reserve Bank of India (RBI). Rebranded in February 2023, SCL has transitioned from a promoter-driven entity to a professionally managed, board-led institution under the leadership of Mr. Gagan Banga (Vice Chairman, MD & CEO). The company operates a **retail-focused, tech-enabled, and asset-light business model**, primarily offering **home loans** and **secured loans against property (LAP)** to MSMEs. It serves both urban salaried professionals and self-employed entrepreneurs, with a growing emphasis on the affordable housing and semi-urban MSME segments. Key entities: - **Sammaan Capital Limited (SCL)**: Parent company; focuses on **prime urban home loans** (avg. ticket size: ₹30 lakh) and **urban MSME LAP loans** (avg. ticket ₹75 lakh). - **Sammaan Finserve Limited (SFL)**: Wholly owned subsidiary; dedicated to **affordable housing finance** and **semi-urban MSME LAP**, targeting Tier II/III/IV towns. --- ### **2. Asset-Light Business Model** SCL has strategically pivoted to an **asset-light, origination-led model** to optimize capital efficiency, minimize asset-liability mismatch (ALM) risk, and enhance return on equity (ROE). Key features include: - **Co-lending, Sell-Downs & Securitization**: - 66.4% of the loan book has been co-lent, assigned, or securitized via pass-through certificates (PTCs). - 60% of disbursals are routed through co-lending (2-month lag), with 40% assigned within 6 months. - All loans are principal-amortizing EMI-based. - **Funding Mix & Balance Sheet Management**: - Only ~40% of originated loans are retained on balance sheet. - Co-lending structure: Typically 80:20 risk-sharing (partner: SCL), with losses shared pari-passu. - 37–40% of AUM funded off-balance sheet via co-lending/sell-downs (vs. 10% in FY18). - ₹91,508 crores in transactions completed with 24 banks/FIs over 6–7 years. - **Revenue Streams**: - Interest spread on retained loans - Processing, origination, and annual servicing fees - Insurance income - Spread on sell-downs --- ### **3. Loan Portfolio & Credit Quality** The portfolio is characterized by **high credit quality, conservative underwriting, and geographical diversification**. - **Collateral Backing**: - 81% of loan book secured by residential property. - 86% of growth portfolio backed by residential assets. - **Borrower Profile**: - Home loans: Even split between salaried and self-employed. - LAP: 61% self-employed (MSMEs), 37% salaried; secured typically by personal residence. - ~50% of borrowers have CIBIL scores >750; median CIBIL: 762 (co-lending portfolio). - **Loan-to-Value (LTV)**: - ~70% of loans below 70% LTV (conservative vs. 80–85% regulatory cap). - Only 33% in 70–80% LTV band—mostly small-ticket home loans. - **Asset Quality**: - 98.4% of loans in Stage 1 (near-prime), minimal credit risk. - Legacy portfolio: 7% overdue; 3.5% Stage 2; substandard: 4.2%. - 90+ day delinquency rate: 54 bps (sold-down portfolio); system-wide: <0.15%. - **Geographic Diversification**: - Strong presence across multiple productive states. - Expanding distribution into Tier 3 and Tier 4 cities—target to double focus states in 12–18 months. --- ### **5. Subsidiary – Sammaan Finserve Limited (SFL)** SFL (formerly ICCL) is being developed as a **standalone, focused affordable housing finance platform**: - **Focus Segments**: - Small-ticket home loans (avg. ₹15 lakh) - Semi-urban MSME LAP (avg. ₹25 lakh) - Smart City program (incubated for 2 years, now scaling) - **Financial Position**: - Net worth: ₹3,000 crores (as of Sep 2024) - Debt-to-Equity: 1:1 (vs. peer avg. ~4:1) — low capital constraint - Fully granular retail loan book; no legacy developer exposure - Net NPA: ₹25 crores post-clean-up - **Performance & Scale**: - Retail AUM: ₹6,100 crores (up from ₹5,000 crores in Nov 2024) - Loan book: ₹2,900 crores - Sold-down portfolio: ₹3,200 crores - Equity capital: >₹3,000 crores - **Strategic Intent**: - Clean operational separation from SCL (distinct processes, systems, people) - Targeting **strategic investor induction by March 2025** - Potential value unlocking: Comparable peers trade at **3x–4x book value** --- ### **7. Technology & Digital Transformation** SCL is a pioneer in digitization in Indian housing finance: - First to launch **end-to-end digital home loan platform** (serving 1.5M+ customers) - Integrated online KYC, automated insurance processing, and system linkages with co-lending banks - Customer service via messaging apps - In advanced stages of implementing **RBI’s Core Financial Services Solution (CFSS)** for centralized data, accounting, and risk control Technology enables **low-cost, scalable distribution** and supports over 8,500 channel partners. --- ### **9. Key Metrics (as of Nov 2025)** | Metric | Amount | |-------|--------| | **Total AUM (Group)** | ₹35,000 crores | | **Growth AUM** | >₹32,000 crores | | **Legacy AUM** | ~₹30,900 crores | | **Co-lending Disbursals (Recent)** | ₹6,700 crores (22,000 loans) | | **Average Co-lending Loan Size** | ₹59 lakhs | | **Branch Network** | 214 | | **Co-lending Partners** | 7 (SFL), 10 (SCL) | | **Sell-Down Partners** | 24 banks/FIs | | **CRAR (SCL)** | 26% | | **NPAs (SCL)** | 2.4% (high provision coverage) | | **Gearing (SCL)** | 2.3x |