Sammaan Capital's Bold Shift: Diversifying Loan Offerings
Sammaan Capital, formerly known as Indiabulls Housing Finance, is embarking on an exciting journey to diversify its loan offerings beyond just mortgages. With a fresh capital infusion of ₹5,652 crore from Abu Dhabi-based IHC, the company plans to transform into a multi-product non-banking financial company (NBFC). This shift is not only about expanding its loan book but also about enhancing its service to a broader range of customers.
According to Gagan Banga, managing director and CEO, Sammaan Capital has outlined a comprehensive business plan aimed at reaching 5 crore borrowers within the next three years. The company aims to double its assets under management (AUM) to approximately ₹1.3 trillion. This ambitious plan includes venturing into new product segments such as personal loans, gold loans, and loans for micro, small, and medium enterprises (MSMEs).
Banga emphasizes that the company will evaluate each loan product carefully, considering the current consumer credit cycle. The goal is to introduce these new products and gain momentum over the next 24 to 36 months, scaling operations to around 300 cities. Following this growth phase, Sammaan Capital plans to explore further opportunities in the lending market, including products better suited for alternative investment funds.
In the subsequent stages, which could extend another two years, the focus will shift towards financial segments like insurance and broking services. Banga believes that leveraging a large customer base will allow the company to tap into these segments effectively and profitably.
Emerging from the shadows of its previous identity, Sammaan Capital is determined to rebuild its reputation under new ownership. Banga asserts that with the backing of IHC, the company is starting with a clean slate, focusing on good governance and a robust balance sheet to attract more customers.
As IHC enters the Indian financial landscape, they view it as a marketplace for all financial services. With a strong balance sheet and access to various capital pools, the parent company is poised to explore all opportunities in the next five years. The intent is to serve the low- and mid-income segments of India, establishing a presence in 500 cities and utilizing technology to enhance operational efficiency.
Overall, this strategic shift not only targets growth for Sammaan Capital but also aims to improve local credit ratings, potentially reducing the cost of funds significantly in the coming months. This transformation could mark a significant milestone for the company and its stakeholders.
