By Nishit Navin and Ashwin Manikandan
(Reuters) -Sammaan Capital will intensify its focus on affordable housing loans after a $1 billion investment by Abu Dhabi’s International Holding Company (IHC), the non-banking lender’s Chief Executive, Gagan Banga, told Reuters.
Affordable housing is a key growth area, and the IHC investment will give that focus “even greater momentum” as the firm works toward an assets under management (AUM) target of 1 trillion indian rupees ($11.27 billion) by the financial year 2027, Banga told Reuters
To support the expansion, Sammaan is opening about 10 branches a month, mostly in tier-4 and tier-5 cities and distant suburbs of larger cities. It plans at least 60 to 70 new branches over the next six to nine months, Banga said.
Non-banking financial companies have increased their focus on affordable housing in recent years, driven by rising demand, the government’s push for low‑cost housing and reduced competition from large banks.
Earlier this month, IHC agreed to acquire a controlling stake in the lender, in a major bet on India’s fast‑growing housing finance market.
Banga said the first tranche of the capital infusion will primarily be used to grow the lender’s core products: home loans and loans against property.
The company will then evaluate new, commercially viable products such as gold loans and personal loans for lower‑ to middle‑income customers to expand its offerings.
Banga added that future tranches could be directed to these new products.
Sammaan, formerly Indiabulls Housing Finance, is open to acquisitions over the longer term but remains focused on organic growth for now.
As Indiabulls it was once among India’s largest housing finance firms. Its troubles began in 2018 during a liquidity crunch triggered by the collapse of Infrastructure lender IL&FS, which exposed it to financial strain.
After being rebranded as Sammaan Capital in July 2024, the fresh investment from IHC marks a major boost for the company, which aims to rejoin the ranks of India’s top 3–5 NBFCs by the financial year 2030, Banga said.
“With the experience that the management team has, the distribution network, and the firepower that IHC’s capital and tech capabilities bring to the table… we are confident of being able to break into that club.”
($1 = 88.7090 Indian rupees)
(Reporting by Nishit Navin; Editing by Tasim Zahid)
