Dear Stakeholders,
I am grateful for your steadfast support and continued investment in the Company. The
fiscal year 2023-24 was marked by many important milestones for your Company and will hold
a special place in its annals.
In its continuing journey towards a board-led, professionally managed financial
institution, the fiscal year gone by saw the completion of your Company's
de-promoterization with the erstwhile promoter fully exiting his shareholding.
Recently, in July 2024, after a nine-month due- diligence process, the Reserve Bank of
India issued your Company a fresh Certificate of Registration as a Non-Banking Financial
Company [NBFC-ICC]. Following this, and on receipt of Certificate of Incorporation from
the Registrar of Companies, your Company changed its name to Sammaan Capital Limited.
De-promoterization and rebranding are significant events in your Company's evolution on
the corporate governance front.
Last fiscal also saw the resolution of the Public Interest Litigation lodged against
the Company in the year 2019. Vindicating your Company's strong stance that the PIL was
frivolous and mischievous, the Honourable High Court of Delhi not only dismissed the
allegations finding no merit in them, but also noted the irresponsible conduct of the
petitioners and associated parties, which resulted in losses to shareholders and other
stakeholders of your Company.
Access to capital has been healthy, and I am grateful to you for your strong vote of
confidence through your enthusiastic participation in the Company's Right Issue. The
Rights Issue of Rs. 3,693 Crs saw bids
of over 2x times and was one of the most successful rights issues of recent years
amongst listed Indian companies. This was followed in March 2024 by a dollar bond issue of
USD 350 Mn. The dollar bond issue, which also saw a very healthy bid-multiple, rode on the
confidence built amongst foreign debt investors by your Company's track record of having
raised and repaid over USD 3.2 Bn of foreign debt in the last 10 years. These bonds were
issued as social bonds under the Company's Sustainable Finance Framework for loans towards
affordable housing and mortgage-backed loans to micro- and small- enterprises.
The Company's balance sheet at the end of FY2023- 24 stood at just over Rs. 73,000 Crs.
Profit after tax for the year came in at Rs. 1,214 Crs, a growth of about 7% over
FY2022-23 profit of Rs. 1,130 Crs. Through a phase of consolidation over the last five
years, your Company has focused on building a 'fortress balance sheet' on the foundation
of high capitalization and capital adequacy; moderate gearing; ample liquidity and
proactive ALM management; and stable asset quality. Consistent with this, at the end of
the fiscal, your Company's net worth stood at Rs. 19,792 Crs, enhanced by the first
tranche of the rights proceeds. Gearing stood at a very moderate 1.9x, and capital
adequacy [on consolidated basis] stood at 33.3%.
With a liquidity coverage ratio of 253% at the end of the year, the Company had
adequate liquidity in cash, cash equivalents, and investments such that ALM was optimally
matched. Asset quality continued to be stable with Gross and net NPAs at 2.7% and 1.5%
respectively, lower than the levels they were at in the previous year. The letter from Mr.
Gagan Banga, your Company's Vice Chairman, MD and CEO, will dwell at greater length on the
Company's performance and operational progress.
Your Company's incremental, retail-focused, asset- light business continues to grow
steadily with now as many as 10 partner banks. Supported by strong macros, including
housing industry specific macros, the outlook is encouraging. I am sure that the Company
would continue to have strong business prospects and the Board is aligned with the
management in helping your Company deliver its best in the years ahead.
I wish to thank all you esteemed shareholders of the Company and also our regulators,
lenders, rating agencies, and other stakeholder industry participants for your continued
support to the Company.
S S Mundra
Chairman