‘Meaningful growth would require strong parentage’

Gagan Banga-led Sammaan Capital, formerly Indiabulls Housing Finance, has once again become a promoter-driven company after several years, with Abu Dhabi-based International Holdings Company (IHC)—the UAE’s most valuable firm with a market capitalisation of $239 billion—pumping in $1 billion for a 66.3% stake. With a new identity as an IHC entity, it is moving away from its legacy as a pure-play mortgage financier. Backed by a large equity infusion, Sammaan has set ambitious targets of becoming one of the top three non-banking financial companies (NBFCs) by FY29, with assets under management (AUM) of at least `1.5 lakh crore, more than double its current size. Gagan Banga, MD and CEO of Sammaan Capital, tells Benn Kochuveedan it plans to expand its branch network to 1,500 from about 200, double its workforce to 10,000 from 4,000, and scale up its customer base to 50 million from 1.4 million. Excerpts:

Sammaan Capital has undergone several changes and divestments in recent years. With IHC coming in, you are once again a promoter-driven firm. How confident are you about achieving these aggressive targets?

We aim to be among the top three NBFCs with a diversified portfolio, doubling AUM to `1.3-1.5 lakh crore by FY29. We will move beyond being a pure-play mortgage lender and transition into a diversified NBFC, targeting mid- to low-income borrowers. This will be supported by expanding our branch network to 1,500 from just over 200 currently.

We will also offer a wider suite of retail credit products, including secured and unsecured MSME loans, personal loans, business loans and gold loans. Alongside, we plan to more than double our headcount to 10,000.

As promoter, IHC brings strong global funding networks and institutional relationships, along with substantial capital. This will help bring down our cost of funds to around 7.5%, significantly enhancing financial flexibility and supporting growth. As an IHC group company, we will also leverage the UAE’s strong sovereign rating to strengthen our credit profile, both domestically and internationally.

How confident am I? More than 100%. Given our learnings over the past seven to eight years, the quality of capital, and the strength of our new parent—larger than the biggest Indian companies—the targets are very achievable.

You have led the company since its Indiabulls days. How do you see its evolution and transition under a foreign promoter?

We have gone through multiple phases — strong growth under an individual promoter, followed by a period of consolidation where we navigated what was effectively an existential crisis. We then stabilised as a widely held, board-driven company, raising about Rs 5,000 crore in equity in 2024.

It became clear that meaningful growth would require strong parentage. With consolidation underway globally and in India’s financial services sector, we needed a long-term institutional backer. IHC provides exactly that -- it is a sovereign-owned, permanent capital provider, not a private equity investor. This is also its first financial services investment in India, making it a multi-decade opportunity for both Sammaan and IHC.

I believe that just as I oversaw one of the largest deleveraging exercises in the sector, I will now lead one of the largest value-creation journeys. This is a new chapter—a rebirth—and positions us firmly for long-term growth.

Before the crisis, the company was part of the Nifty 50. When do you see a return to that league?

One key learning is that management should focus on running the business well and creating value. Market milestones are secondary. I have no interest in chasing index inclusion. What matters more is delivering a high-teen return on equity. That is far more meaningful than being part of the Nifty 50 or Sensex.

With IHC taking control, do you expect board-level changes?

There are no immediate plans for board changes. Directors will retire in the normal course, and replacements will be brought in accordingly. As a listed company, we will continue to comply with the required balance between independent, executive and non-executive directors.

Do you have the full confidence of the new promoter?

In an NBFC, investors are essentially backing the management team. IHC has committed capital based on its confidence in us so far. Now, the focus is on delivering value. If we create value, we will retain their confidence. If not, they have the ability to bring in the best talent globally. So, we have to stay on our toes.

By value creation, I mean improving return on assets to 3–3.5% by FY29 from under 2% now, and return on equity to 18–19% from about 7%. With the quality of capital coming in and a lower cost of funds—around 7.5%—these targets are achievable.