Sammaan Capital Ltd

Ladies and gentlemen, good day, and welcome to Samman Capital Limited Q1 FY '26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone.

I now hand the conference over to Mr. Aryan Sumra. Thank you, and over to you, sir.

Thank you. Good evening, ladies and gentlemen. I welcome you all to the Q1 FY '26 earnings conference call for Sammaan Capital Limited. To discuss this quarter's business performance, we have from the management, Mr. Gagan Banga, Vice Chairman, Managing Director and CEO, along with other senior management.

Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website.

Without further ado, I would like to hand over the call to Gagan sir for his opening remarks, and then we'll open the floor for Q&A. Thank you, and over to you, sir.

Thank you. A very good day to all of you, and I welcome you to our quarter 1 fiscal '26 earnings call. I request you all to keep the earnings update handy. We have emailed this to you and have also updated it on the exchange website and our website.

In August 2025, the Reserve Bank of India revised the co-lending arrangement directions, significantly expanding the framework beyond priority sector lending to now include non- priority sector segments as well. The new directions broaden eligible participants to include besides banks, NBFCs, HFCs, all India financial institutions and permit arrangements such as NBFC to NBFC co-lending.

Key changes also include a reduced minimum retention ratio from 20% to 10%. The guidelines move to a unified borrower level asset classification requirement, enhance customer transparency through key facts, statement and detailed loan agreements and mandate quarterly and annual disclosures on the scale, pricing and performance of the co-lending portfolios. These reforms are expected at our end to deepen partnerships, improve risk sharing and widen access to credit while maintaining strong governance and customer protection standards.

Our asset-light strategy has firmly validated itself as a powerful growth engine for our company.

By leveraging co-lending partnerships and loan sell-downs, we have consistently scaled our retail origination platform without unduly stretching our balance sheet or our leverage. This approach allows us to efficiently distribute risk, access diversified funding and sustain high levels of capital efficiency, all while maintaining robust asset quality.

The scalability of our distribution engine is evident in our steady expansion of disbursals through collaborations with leading banks and financial institutions, reinforcing the strength and sustainability of our asset-light model.

We were amongst the first movers as far as co-lending back in 2020 is concerned. Today, we are perhaps one of the largest loan originators in the country, working in the industry, working with close to 24 banks and financial institutions.

Through early adaptation and relentless innovation, we have set the industry benchmarks, helped partner banks augment their mortgage lending while ensuring high-quality long tenure portfolios and rapid execution through our technology-enabled platform.

The recent RBI's draft circular on co-lending had played a pivotal role in accelerating our business model. The updated guidelines formally thereafter have widened the scope and the mandate enhanced includes borrower transparency and unified asset classification, which from a long-term perspective is for the better.

Soon after the draft circular was released, we worked on and invested heavily in building a robust technology integration framework that is at the heart of our operations. Our digital lending platform seamlessly connects with partner banks, credit bureaus, government databases and fintech APIs, enabling faster onboarding, instant credit assessment and efficient risk monitoring.

If some of you may recollect, we've had spoken in the past about the fact that post the successful equity capital raise that we've done through calendar '24 and early '25, we now have the ability to seamlessly pivot between direct assignment, pass-through certificates and co-lending. This enables us to ensure that we are able to monetize our loan book efficiently, enhance liquidity and optimize balance sheet usage while retaining the asset-light character to our growth model.

This combination driven by advanced technology allows us to scale originations rapidly, deploy capital judiciously and maintain healthy asset quality, all while expanding our market presence without proportionately increasing our own leverage or credit exposure.

We've invested heavily in system integration and additionally we use services of a data aggregator we call “YUBI” which provides a secure and efficient interface for data transfer between us and our banking partners. It enables seamless real-time exchange of customers and loan beta, cutting down processing time, improving compliance checks and reducing operational friction. This technology not only accelerates co-lending and assignment workflows, but also adds reliability and transparency to our partnerships, setting a new benchmark for speed and efficiency.

As the circular has evolved, there are now water type arrangements or strategic partnerships where banks would be soft underwriting or committing themselves to loans originated by their partner. We believe through rapid technology integration and transfer of data for a bank to be able to commit to transactions with us and complete them within the 15-day timeline that the Reserve Bank has set is fairly seamless in our case. And come January, we should be able to, without any issue, migrate to the new system of co-lending.

Now getting into this quarter's numbers. I request you all to turn to Slide 4 of the earnings update.

In quarter 1 fiscal '26, our net worth increased to INR22,137* crores from INR21,822 crores at the end of fiscal '25, reflecting continued capital accretion. On the AUM front, total book ended at INR62,378 crores with growth AUM at INR39,805* crores, forming 64% of the total, up from INR37,452 crores at the end of quarter 4.

The legacy AUM continues to run down and is in line of our H1 projections, where we are expected to collect approximately INR6,000 crores, and the legacy AUM stands at a little over INR23,000 crores now. The net interest income came in at INR1,200* crores, the PPOP at INR993* crores and the profit after tax was stable at INR334 crores. The gearing continues to be moderate and the gross and net NPAs are very stable.

I request you all to now turn to Slide 5. On this slide, we have shown our progress towards our strategic goals at both the consolidated level and at Sammaan Finserve, our subsidiary. We have made significant progress across all four pillars of our medium-term strategy. And we have focused on strengthening our technology platform and expanding our co-lending partnerships.

Slide 6 contains our asset quality, where as it has come in, our gross and net NPAs are stable at 1.5% and 0.8%. Slides 8 to 12 give granular details of the growth AUM. The last 7 years have tested our AUM from an asset quality perspective, and we have done quite fine. We believe that as we move forward, as the growth AUM expands, asset quality would be the hallmark of this portfolio.

Slide 9 provides a greater depth of our Sammaan Capital and Sammaan Finserve product suite.

Now if we go back to Slide 8, I would like to draw your attention to a very well-integrated model, which has come out of strategic initiatives part of which we took last year.

If you recollect, we converted Sammaan Finserve, our subsidiary, into an entity focused on affordable home loans and semi-urban LAP. As we penetrate deeper, it was very clear that we needed to engage with our potential borrowers digitally as well as completely integrate our entire workforce to also digitally interact with the central credit departments and other such departments.

We've built an End-to-End Online Loan Fulfillment system, which not only onboards the lead, it facilitates the KYC and the entire document upload that a potential borrower needs to do. Via Digital Banking, we are able to draw the bank statements and eventually also do digital disbursals. As a result of all the information coming to us digitally, the entire underwriting is now being done digitally and the disbursal is also being done digitally. * Note: During the call, Net Worth, Growth AUM, NII & PPOP figure was inadvertently said as INR 22,137 crore, INR 39,805 crore, INR 1200 crore & INR 993 crore respectively, please note that Net Worth, Growth AUM, NII & PPOP should be read as INR 22,106 crore, INR 38,897 crore INR 1213 crore & INR 934 crore respectively as a factual figure, as reported in the financial collaterals.

We have partners, which are leaders in their own spaces. DigiLocker is a government initiative, CORPOSITORY, Riskcovry, SignDesk, etcetera, are facilitating this entire digital integration.

This is now being rolled out for salaried borrowers. And before the end of the year, this will be expanded to even self-employed borrowers.

Our goal is through fiscal -- through calendar '25, we should be in our engagement with our borrowers, have a completely digital channel, which enables the borrower, which enables our internal workforce and allows us to integrate seamlessly this entire technology with the eventual home or the warehouse of the loan, which is our banking partners.

Over the course of the last 4 to 5 months, beyond the basic level integration, which was required under Track 2 co-lending, we expanded that such that decisioning can be done parallelly at both our end and at our partners' end on a loan-by-loan basis. That integration is complete with most of our partners.

Before the end of the year, every partner will be live with this. Thus, as I said earlier, come 1st January 2026, we will have a fairly unique tech edge, both in being able to evaluate a borrower, sanction a loan, integrate with the bank, send the information to a bank and get the whole co- lending loop closed all digitally.

As we look to expand Sammaan Finserve into the hinterland of India and Sammaan Capital works on prime origination in the top 100, 120 cities. This would positively impact our cost- income ratio and facilitate the end reach for the company, both the companies.

The product suite, which is there on Slide 9, you would notice in Sammaan Finserve, our home loans are all of INR15 lakh of ticket size. The LLP loans are loans given to -- secured loans given to micro businesses at INR25 lakhs. At 11.5% and 13%, these are fairly prime sort of borrowers. The credit costs are minimal, but the operating costs are fairly large.

The digitization of the entire journey should positively impact the operating costs and therefore, over a period of time, reduce our cost-to-income ratio. The mix between our salaried and self- employed borrower is 50-50. So for 50% of our potential borrowers, the product is ready and is being rolled out. For the balance 50%, the product should be ready before end of calendar '25.

Now how does this product work is detailed on Slide 10. It starts with Digital lead onboarding.

So we have our own workforce. Then we have a large network of business associates who work with our workforce who are basically just giving us a lead. And then, we also have direct sales agents who have to integrate into the credit team to pass on information. They are capable of putting together the initial part of the file and then the credit team takes over and a relationship manager takes over.

60% of our origination happens between our team and business associates. 40% happens through direct selling agents. All of this information lands up via the digital lead onboarding system, which is accessible via our website, app or some portions of it are also available via chat to us.

Then there is a document upload, which follows where all the key information documents such as income documents, KYC documents are uploaded. And then we use various government

setups or setups which are allowed by the government to complete, our regulators to complete KYC formalities and everything else which is linked to it.

That entire journey is completed digitally. We use the integration with the various banks in the country to draw the bank statement and do a bank statement analysis completely digitally. We use the account aggregator system to pull whatever else is necessary from our banking partners with the consent of our borrowers. It's a complete integration with account aggregators for analyzing bank statements, which enables a very quick and accurate assessment of the banking history of our borrowers.

All of this information is then utilized for automated digital underwriting. The credit assessment is automated based on a review by the credit manager, a digital sanction is sent across. And then, once the loan is sanctioned, there is a notification which is received by the customer.

Using payment gateways, purchase of insurance through e-insurance platform, most of the paperwork gets completed for registration, etcetera, a physical visit is required. That's probably now the only relevant physical leg left to this journey.

As a monoline company, both Sammaan -- as monoline companies, both Sammaan Capital and Sammaan Finserve have digitized the entire journey. This, as I said earlier, enables us to go much deeper into India and enables us to expand our distribution network physically, reduce the cost and the cost-income ratio of the entire distribution network, automates the underwriting, thereby reducing mistakes.

Practically eliminates fraud since all the information is being integrated directly with the source.

So the bank statement comes from the bank, the tax statement comes from the tax department, etcetera. So the scope of fraud is practically eliminated.

And this just makes the entire organization more rule-based and allows us to, therefore, continue to operate at a large scale becoming larger without necessarily increasing our leverage since all of this is also integrated with our partner banks.

We've begun rolling out the e-mortgage product in select Tier 1 and Tier 2 cities. Early adoption has exceeded expectations. It would obviously, in today's day and age, continue to exceed expectations. The demand is strong. The customer is fairly comfortable with the tech. Over the next 3 quarters, we plan to expand this nationwide, fully embedding the platform into our co- lending and assignment framework.

And the next growth would be into the self-employed segment, which would be a high degree of disruption. Since self-employed underwriting today is considered as very heavy on paperwork, etcetera. We are trying to make it as paper-free as possible.

We continue to realign our distribution network. We have to consolidate our branches in the larger cities, expand our network into the smaller cities. We currently operate with about 220 branches. And the sales team is around 2,000 people, of which around 1,300 people are on the field. This number, now that most of the branch consolidation is done, should continue to expand

from here. As I shared earlier, we also have business associates and direct selling agents, which are over 8,000 number.

In terms of trying to understand what kind of a retail book is being built, 80% of the book is residential property backed. This is all detailed on Slide 12. It is geographically well distributed at a current ratio of about 25% on salaried and 75% on self-employed, going to about 50-50 between salaried and self-employed. With a moderate loan-to-value, the home loan loan-to- value is at 70% and for the LAP loans, it is around 55%.

We've had a long history of doing business with banks with the history denominator being over INR1 lakh crores now or roughly INR1 lakh crores now. The pool has now run down over 75% through the years and the 90 DPD is all of 50 basis points.

It is thus a demonstrated performance of purchase pools with our counterparties, which is 24 banks, which is the foundation or the most solid moat that we have created in our business. The organization is fully focused on making sure that the retail business, the credit quality remains pristine.

The scalability of our retail origination engine via the asset-light business model is demonstrated by our track record of doing transactions of over INR2,000 crores in quarter 1 fiscal '26. And with this tech leveraged approach and the expansion of co-lending, I would imagine an exponential increase in this in the quarters to come.

We've also been taking strategic initiatives. Last year, we took a strategic initiative of creating Sammaan Finserve into an affordable housing company focused on affordable loans and micro LAP loans. Through the quarters, we have spoken about the fact that we would be looking at bringing in a strategic partner. Decision has been taken to move forward with that process.

We would be looking to, over the next 3 quarters, bring in into Sammaan Finserve, a strategic partner who is rating accretive. The necessary interaction with the regulator is currently on. And we are fairly confident that over the next 9 months, we should be in a position to complete this process.

We had also announced the fact that as we do this, we will have to completely isolate Sammaan Finserve from a tech people, etcetera, perspective, such that our organization has its own distribution branch network and Sammaan Capital has its own focus, while Sammaan Finserve has its own distribution and focus. That required fresh hiring. That also required a certain degree of organizational restructuring at the management level.

Over the course of the next 3 weeks, we should be in a position to complete the process of appointment of the Deputy CEO of Sammaan Capital. That process has progressed materially.

The NRC of the Board is seized of the matter and is in the process of completing the formalities.

All of this is obviously subject to relevant approvals, but we are fairly confident of being able to close this entire process over the next 3 weeks.

Along with that, there would be a strategic reorganization of the top few people in the company with the necessary focus being put on Sammaan Finserve for its growth as a standalone

organization. So through the month of September, we would also look forward to announcing the same.

And these are two key strategic initiatives which are going to happen, which would then build up to an equity partner coming in at Sammaan Finserve. The arrival of a new equity partner with a strong market reputation should be rating accretive for the Sammaan Finserve entity and should also have a positive rub-off on Sammaan Capital.

As far as the legacy loan book is concerned, we have been working fairly hard at making sure that there is efficient resolution of the legacy loan book. Through financial year '25, we made very good steps in terms of running down the book. Quarter 1 is leading well into quarter 2, and we are very confident of being able to achieve INR6,000 crores to INR7,000 crores of collections as far as the legacy book is concerned in the first half of the year.

We projected a rundown of INR8,000 crores this financial year. We are well on track of that.

The necessary resolutions are happening. Wherever the construction needs to be done to be completed is progressing well.

Month-on-month, more and more projects are going towards the occupancy certificate. We are working hard to make sure that the inventory that is there also gets sold out and the balance sheet becomes lighter and pivots more towards the type of loans that we want to originate and keep on the balance sheet on a longer-term basis.

So all-in-all, the health of the legacy book and the rundown of the legacy book is going well.

And I'm quite hopeful and optimistic that the numbers that have been detailed on Slide 14 is something that we should be able to comfortably meet like we met them in fiscal '25.

As we resolve this, one is very mindful of the fact that we would continue to face some litigations as some of the NPA written-off assets, etcetera, we go behind them to recover, there would be litigations. That is not going to derail the process or demoralize the management. We are very focused on the fact that this money has to come back to the balance sheet of the company, and we will continue to take whatever steps which are necessary.

Over the course of the last few months, you may have read multiple lenders face these kind of issues where all kinds of fictitious or fallacious complaints are lodged. And unfortunately, the system at times tends to entertain those complaints. That over the last 7 years is one learning that it will happen. We will have to navigate that.

And we are fairly confident that we should be able to navigate that and thus comes the confidence of being able to resolve the legacy book in a very organized manner as we have done over the last few years. The legacy book has thrown up cash of over INR1.5 lakh crores, and we are fairly confident that, that track record should continue.

To conclude, I would like to thank all our shareholders, investors, Board members, employees, partners for your trust and support. Quarter 2 last year was strategic from a perspective of isolating Sammaan Finserve. Quarter 2 fiscal '26 is strategic from a variety of perspectives.

At the manpower level, I mentioned over the next 2 to 3 weeks, we should be doing senior level appointments as senior as the Deputy CEO, making sure that the top deck of Sammaan Finserve is fully empowered to take home a transaction and get on board an equity partner, which should be accretive to Sammaan Finserve's credit rating.

At Sammaan Capital level, we are already taking -- seeing the benefit of the capital raise that we did. If you recollect, I had mentioned the most important thing for an organization like ours is free flow of capital. And as a result of our capital raise and the various initiatives taken by the organization, the on-balance sheet borrowings have started increasing.

The asset-light strategy despite the rundown of past PTC transactions that we had done or structured finance being run down has also started increasing. All-in-all, there is much better access to capital. And that should, over the course of the next 6 months or so also enable us to cause the necessary competition for our cost of capital to decline. That from an operating perspective is the next level. The goals both strategically and at an operating level are well set, and we are committed to achieving those goals.

On that note, thank you so much, and we are open to questions.

Thank you very much. We will now begin the question-and-answer session. We'll take a first question from the line of Ankita Agarwal from NJT Advisors.

So could you just provide an update on your borrowing mix, cost of funds and also the duration profile of liabilities?

So our liabilities, ma'am, as would be evident from the ALM would typically have an average maturity of roughly about 5 years. And so that's the contractual -- actuarial life, not the contractual life. So about 20% to 25% of our liabilities come up for repayments every year, which would mean that approximately INR8,000 crores of principal comes due every year.

Okay. Also regarding capital adequacy and gearing ratio, so we can see there is a high capital adequacy and moderate gearing. So do you plan to accelerate loan book growth in FY '26? And also, will you prioritize maintaining balance sheet strength?

So ma'am, our strategy is not something which is to be spoken about just today, the strategy has been fairly consistent. We will continue with moderate gearing while trying to expand our AUM.

The focus right now is more than rapid expansion to focus on how to increase yields, which is one of the reasons why we had taken the initiative of introducing products after due testing last year in Sammaan Finserve. So the idea would be to continue to grow the AUM without necessarily increasing the leverage. Leverage, which is around 2x should remain in the same range of 2x to 2.5x.

The next question is from the line of Darshil Jhaveri from Crown Capital.

Firstly, congratulations on a great set of results in Q1. Hopefully, I'm audible. Yes, you are.

So I just wanted to ask a bit about our provisioning policy. So in Q1, we have provided for around INR466 crores roughly. So what can we expect going forward for the full year provisioning, if that could be given as a guidance? And how would it move quarterly, sir?

So there are two parts to our provisioning policy, which we have spoken about earlier. On a steady-state basis, our credit costs would be about 100 basis points, on an annualized basis. And any one-off income that we receive, we would use that to enhance the provision buffer. We had a change in the accounting policy as far as de-recognition of assets is concerned.

And we -- from some actuarial-based model, we made it actual contracted basis. That resulted in a onetime increased income of approximately INR400 crores, which has been used to create additional provisions. Aside of these onetime events, our annualized credit costs would be 100 basis points.

Okay. Fair enough, sir. So other than that, from now in the rest of the quarters, how would the credit cost move like in terms of absolute value?

So it should be in the range of about, I would imagine, INR100-odd crores per -- yes, INR100- odd crores or so per quarter. Per quarter. Okay.

Unless we get some onetime sort of income. If it comes, then we continue with a policy which is now several years old. All onetime income goes into provisions.

The next question is from the line of Nischint from Kotak Institutional Equities.

I'm just trying to kind of connect the dots. Just reconfirming your AUMs are around INR62,000- odd crores. And I guess the loans on balance sheet would be closer to INR4,950 crores. And the balance amount, is it fair to say are the loans which are outside the balance sheet? And if that's the case, then how do we corroborate the INR732-odd crores income on net gain on the recognition of financial instruments. This is for the quarter.

Yes. So there would be the balance loans will be off the balance sheet and then PTCs, as you know, are peculiar that they are on and off the balance sheet. So that's a peculiar accounting treatment. But yes, assuming that PTC instruments continue to be on the balance sheet, the balance INR14,000 crores, INR15,000 crores will be off the balance sheet.

Got it. And this INR732 crores is the one-time income, right, of whatever you would have sold out of the INR12,000 crores, INR13,000 crores during the quarter?

This is the one-time income from the entire sold-down book, not from the INR2,000-odd crores of transactions done this quarter from the entire INR15,000-odd crores.

Okay. So this is the amortized and unamortized both put together? Yes.

Got it. So just -- sorry, just if I can continue with this. What proportion do you book on an amortized basis and where do you book it upfront of the INR12,000-odd crores?

There is a line income booked from via de-recognition of assets. That's where we book it. And earlier, we would book it on an actuarial life basis. Once the co-lending happened and we moved very close to prime rates effectively for the banks, that principle was not holding true. So we revisited that at the Board level and decided to make it as per the contract of the loan.

So if there are any prepayments, there would be a negative income. And if there are -- the income for a quarter would come from sale for the entire contracted life. If there are prepayments, then in subsequent quarters, there would be minor reductions. So that's how it will play. We have done a simulation, and we believe that we will go back to approximately INR150 crores of income via de-recognition starting next quarter, which has been the track for some time now.

The next question is from the line of Vikram Damani from Damani Family Office.

Okay. So just one clarity. On Slide 5, you mentioned that your disbursements are INR3,736 crores. And on Slide 12, it says INR2,640 crores. So just wanted to know the -- if you can explain the difference between the two, please?

INR2,640 crores would be the co-lending, direct assignment kind of transactions that we would have completed with our partners. The gross disbursal will be higher than what we will be able to assign in a certain quarter. Whatever is not assigned, then gets subsequently assigned.

So as I mentioned in my comments, we pivot between direct assignment, pass-through certificates and co-lending. Co-lending under Track 2 typically would have a turnaround of 2 months, direct assignment about 8 months, and same for PTCs. Maybe slightly longer for PTCs.

So what we disburse would have a lag of 2 to 10 months before it gets transacted.

Okay. So we've disbursed the amount, it's just that is not yet gone under the asset-light model.

The difference is due to the time lag in assigning the loans?

Correct. And we would -- there would also be a small element of loans that we will have to give out for completing the construction of the various projects that we are doing. So all of that gets added.

Can you quantify? Sorry, please continue.

Off-hand, I cannot. We can do that exchange over email.

The next question is from the line of A.S. Raju, an investor.

Happy to see your total revenue growth. Sir, the cost of interest is not coming down, though we are having a cash of INR22,000-odd crores of net worth. Sir, what is the next 2 years' earnings projections? And the other question is what happened to the wholesale book and dividend for the last year?

Sir, we have in a fairly detailed manner given the trajectory of the legacy book. So if you come to Slide number 14, you would see all the possible details which are there as far as legacy book is concerned. So last year, the legacy book came down to approximately INR25,000 crores. And this year, it should come down further to approximately INR15,000 crores. As for dividend is concerned, we will have the AGM sometime in September. As part of the resolution, we will propose to the Board to consider dividend.

And I am not in a position to be able to comment as to what that decision would be. We are in a stage where we are more focused on putting the capital to work to expand the business at this stage and use all the liquidity possible to expand the franchise. So that is a better utilization of our capital and liquidity at this point in time, which then will be used to enhance the ROE. ROE can only get enhanced if business gets enhanced. And we would look to work every rupee available to us to expand the ROE, and that's the focus.

What is the earnings projection, sir, for this year and next year?

So we would be looking at getting to a teen-ish kind of -- low teen-ish kind of ROE by fiscal '27. That's the projection that we have given. And that's what we would like to believe that we should be able to get to.

The next question is from the line of Niraj Vijay Kamtekar from ProsperoTree PMS.

Sir, company is constantly focusing on reducing the legacy book. And I think the reason for reducing the legacy book might be the ticket size or lending to the builders and developers. Sir, in this quarter, particularly in the quarter for quarter 1 '26, the legacy book is reduced by INR1,413 crores. I would like to know how much by collection of the [indiscernible] and how much is by making the fresh provision out of the outstanding legacy book?

All of it is through collections, sir. I would say 98% is through collections.

And sir, what is the expectation, whatever today outstanding at the end of the quarter 1, how much the company is likely to make the provision out of the balance amount?

Sir, we have been maintaining that our annualized credit costs would be approximately 100 basis points. If we look at the provisions that we carry plus the recoveries that we can potentially have from the write-offs that we have taken, all of that put together, imputed comes to a cover of approximately INR8,000 crores. So we have imputed provisions, which is provisions plus recoveries of approximately INR8,000 crores covering this INR23,000 crores, INR24,000 crores. So we believe there is adequate provisioning.

There would be recoveries, which we would continue to recycle to keep this book adequately covered till fiscal '27. That is the stated policy. Come end of fiscal '27 based on the outstanding legacy book, the provisions, we will see what we have to do. Do we have to do a release of provisions and do a one-time dividend or do we use those provisions for doing a sale of the balance legacy book? That's a call to be taken at that point in time. Today, the short answer to your question is we are very comfortable with 100 basis points of annualized credit cost. I'll take one last question, please.

The last question is from the line of Chintan Mehta from Puniska Family Office.

Sir, one of the interviewer in TV mentioned that we are trying to monetize some strategic partner at Sammaan Finserve. By when we are looking to do that, sir?

So I have mentioned two initiatives. One is an organizational restructuring, which includes induction of fresh senior talent. That process, I expect to complete over the next 3 weeks or so.

And then with that, we will be in a position to work with potential equity partners, which are of a nature where they are rating accretive to Sammaan Finserve. That exercise we would like to have finished latest over the next 9 months.

Yes. So thank you. Thank you all for your questions. And as you may have noticed, these are fairly exciting times for us. There's a lot of work to do. So we'll get back to our work, both strategic and operational. And we look forward to speaking to you next quarter. Thank you.

Thank you. On behalf of Sammaan Capital Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.