### **Overview** Sammaan Capital Limited (SCL), formerly known as Indiabulls Housing Finance, is one of India’s largest non-banking financial companies (NBFCs) focused on mortgage and MSME lending. Rebranded in FY2024–25 after receiving NBFC-ICC (Investment and Credit Company) registration from the Reserve Bank of India (RBI), the company has transitioned from a promoter-led entity to a professionally managed, board-governed institution. With over two decades of operations since its founding in 2000, Sammaan has disbursed over $28.5 billion in housing and mortgage-backed loans to more than 1.4 million customers. SCL operates through an **asset-light, tech-enabled, retail-focused business model**, positioning itself as a leading mortgage origination platform in India. It leverages strategic co-lending partnerships with banks and financial institutions, securitization, and loan assignments to de-risk its balance sheet and sustain high return on assets (RoA). The company’s core businesses include **home loans, loans against property (LAP)** for MSMEs, and **affordable housing finance** via its subsidiary, **Sammaan Finserve Limited (SFL)**. --- ### **Strategic Transformation & Recent Milestone (Oct 2025)** In October 2025, **International Holding Company (IHC)** — a major Middle Eastern investment group with a $240 billion market capitalization — acquired Sammaan Capital in a **$1 billion preferential issue**, signaling strong confidence in India’s financial sector and Sammaan’s long-term growth strategy. #### Key Impacts of IHC Investment: - **Capital Strength:** The infusion strengthens Sammaan’s balance sheet, enabling a lower cost of funds, improved credit ratings, and support for scaled lending. - **Strategic Partnership:** IHC’s global expertise in digitization, automation, and advanced IT infrastructure is expected to accelerate Sammaan’s digital transformation and enhance operational efficiency. - **Enhanced Creditworthiness:** Moody’s placed Sammaan’s ratings under review for an upgrade, reflecting improved financial stability. - **Governance & Global Standards:** The partnership reinforces ESG-aligned governance, transparency, and institutional ownership, aligning Sammaan with international best practices. This acquisition enhances IHC’s footprint in high-growth Asian financial markets and allows Sammaan to leverage global capital and technology platforms. --- ### **Business Model & Growth Strategy** Sammaan Capital has shifted from a traditional asset-heavy NBFC to a **franchise-style origination engine**, focusing on capital-light, scalable lending. #### **Key Components of the Asset-Light Model:** - **Co-Lending Model (CLM):** Sammaan acts as a sourcing and servicing partner, co-originating loans with banks under an 80:20 risk-sharing structure. It retains only 20% of the loan on its balance sheet while earning spread, fees, and cross-sell income on the full amount. - **Loan Assignment & Securitization:** Loans are assigned to banks after a six-month seasoning period (retaining just 10%) or securitized via Pass-Through Certificates (PTCs), enabling capital recycling. - **Funding Mix Target by FY26–27:** - 40% Co-lending - 40% Direct Assignment - 20% PTCs This strategy aims to achieve a **steady-state RoA of over 4%**, with incremental returns already at 3%. #### **Digital Transformation:** Sammaan operates a **fully digital, end-to-end loan origination platform — eHomeLoans**, the first of its kind in India (launched in 2016). Key features include: - Digital KYC, document upload, and approval via DigiLocker and Perfios integration. - Centralized underwriting at regional credit hubs. - AI-driven credit scoring and automated decisioning (planned eMortgage platform launch in FY26). - 24/7 AI chatbot support; ~80% of customer queries now handled digitally. - API integrations with fintech partners like Yubi and Knight Fintech. The digital model supports a **phygital (physical + digital)** distribution approach, especially in Tier 3 and 4 towns. --- ### **Business Segments & Subsidiaries** #### **1. Sammaan Capital Limited (SCL)** - Focus: Urban home loans and MSME LAP loans (prime segment). - AUM (FY25): ₹62,346 crore (retail-focused Growth AUM: ₹37,000+ crore). - Target: **₹70,000 crore** standalone AUM by FY27; **₹1 lakh crore** consolidated AUM by FY27. #### **2. Sammaan Finserve Limited (SFL)** (Wholly owned, NBFC-registered) - Focus: Affordable housing and semi-urban MSME loans. - Target Borrowers: Middle-income families and small businesses in Tier 2–4 cities. - Average Loan Sizes: - Home Loans: ₹15–50 lakh - LAP: ₹25 lakh - AUM: ₹7,125 crore (Sep 2025); Net Worth: ₹3,071 crore. - Target: ₹15,000 crore AUM and ₹1,500 crore in monthly disbursals by FY27. - RoA Target: >4% - SFL is intended as a **standalone, high-growth platform** with potential for strategic monetization or investment, trading at attractive book-value multiples (3–4x) like peers. --- ### **Financial & Operational Performance** #### **Loan Disbursals (Recent Quarters):** - **Q2 FY26 (Oct 2025):** ₹1,909 crore - Home Loans: ₹1,066 crore - LAP: ₹843 crore - **Q1 FY26 (Aug 2025):** ₹2,639 crore - Home Loans: ₹1,570 crore - LAP: ₹1,069 crore - **Monthly Run Rate:** ~₹1,800–2,000 crore; Target: ₹2,700–2,800 crore by FY27. **Annual Disbursement Target:** Increase from ₹15,000 crore to **₹35,000 crore by FY27**, supported by expanding branch and partner network. #### **Credit Quality & Risk Management:** - **Loan-to-Value (LTV):** - Home Loans: 70% (conservative vs. 80–85% allowed) - MSME LAP: 55% - **Geographic Diversification:** No concentration risk; portfolio spread across 21 states, 150+ cities. - **Collateral Quality:** Over 75% of new loans backed by **residential property**. - **Credit Profile:** Median CIBIL score: **762**; 85–98% of portfolio in Stage 1 (low risk). - **Asset Quality (Feb 2025):** - GNPA: 1.14% - NNPA: 0.66% — lowest in six years. - **Delinquency:** Delinquency rates below 0.6% since FY22. --- ### **Distribution & Organizational Strength** - **Branch Network (Oct 2025):** 219 branches (60 main, 82 semi-urban, 23 master service centers) across 21 states. - **Human Capital:** ~4,400 employees; 8,280 empaneled DSAs. - **In-House Sales Team:** 1,859 personnel (1,300 field agents). - **Future Expansion (by FY30):** Target 570 branches and 17,000+ employees. Operational restructuring is underway to consolidate overlapping branches and optimize city coverage. --- ### **Leadership & Governance** - **Gagan Banga:** Managing Director & CEO since 2004, credited with building Indiabulls Housing Finance into India’s third-largest HFC and steering the transformation to Sammaan Capital. - **Sachin Chaudhary:** Former head of retail mortgages, instrumental in scaling the co-lending and Smart City platforms. - **Professional Governance:** Former promoter exited in 2023; now a board-driven entity with strong institutional oversight. - **Advisory Strength:** Hired RBI core group veteran to strengthen IT and risk management systems. --- ### **Sustainability & ESG** - **Name Significance:** “Sammaan” (meaning "respect" or "dignity") reflects a customer-centric ethos. - **Phygital Model:** Reduces paper usage and carbon footprint; digital underwriting saves ~60% in printing costs per loan. - **Financial Inclusion:** Focus on Tier 3–4 towns, affordable housing, and MSMEs. - **ESG Integration:** Loan terms linked to sustainable economic activities. --- ### **Summary of Key Strengths** | **Competitive Advantage** | **Details** | |--------------------------|-----------| | **Asset-Light Model** | 95–96% of loans co-lent or sold down; minimal ALM risk | | **Technology Leadership** | Industry-first eHomeLoans platform; AI, APIs, automation | | **Strong Credit Quality** | High CIBIL scores, conservative LTVs, low delinquency | | **Strategic Partnerships** | 10+ co-lending banks; 24 sell-down institutions | | **Institutional Backing** | IHC’s $1B investment, high capital adequacy, stable ratings | | **Focus on Inclusion** | Retail, affordable housing, Tier 3–4, MSMEs | | **Governance & Clarity** | Professional management, separated business units, transparent disclosures | ---