Sammaan Capital Limited has informed the Exchange regarding 'At the start of the financial year 2024-25, the Company delineated its loan book and assets into growth assets and legacy loan book, with an intent on expanding its growth assets and focus on running down its legacy loan book. In FY2024-25, the Company saw strong collections from its legacy loan book and realized robust recovery from its loans already provided for, including from pools sold to asset reconstruction companies [ARCs]. The Company also tactically utilized its provision buffers and its recoveries to sell delinquent pools from its legacy loan book to ARCs to increase recovery traction from such loans.Against a targeted collections from the legacy loan book of ₹ 4,075 Crs in Q4FY2024-25, the Company collected ₹4,235 Crs. This takes total collections in FY25 from the legacy loan book to ₹ 15,325 Crs, of which ₹ 9,461 Crs has been collected in H2FY2025 against a target of ₹ 9,300 Crs. Total recoveries from the legacy loan book for FY25 stood at ₹ 2,491 Crs, of which ₹ 1,680 Crs were recovered in H2FY2025, against a target of ₹ 1,650 Crs.Fueled by strong real estate market, the legacy loan book is seeing robust collections and superior price realization. This extends to strong collection traction from the written-off/provided for pool, including from pools sold to ARCs, as buyers are seeing good value in picking repossessed properties or properties from stressed borrowers. To spur speedy collections from delinquent loans, the Company will tactically utilize its recoveries and released provisions to keep selling delinquent pools of loans from the legacy book to ARCs, without adverse impact on earnings and guided credit costs. The Company remains very optimistic about the trajectory of run-down of its legacy loan book.'.
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Sammaan Capital reported strong performance in running down its legacy loan book in FY2024-25. In Q4FY25, the company collected ₹4,235 Crs against a target of ₹4,075 Crs, taking total FY25 collections to ₹15,325 Crs. Collections in H2FY25 stood at ₹9,461 Crs versus a target of ₹9,300 Crs. Total recoveries from the legacy book for FY25 reached ₹2,491 Crs, with H2FY25 recoveries of ₹1,680 Crs beating the target of ₹1,650 Crs. The company attributed the strong performance to a robust real estate market, which is helping price realisation for repossessed or stressed properties sold to asset reconstruction companies (ARCs). Sammaan plans to continue tactically selling delinquent pools to ARCs using recovered funds and released provisions, without hurting earnings or guided credit costs.
Beating internal collection and recovery targets in both Q4 and H2 signals healthy asset quality resolution and disciplined balance-sheet repair, which is positive for shareholders. The upbeat tone on the legacy book run-down trajectory suggests the company is on track to wind down stress assets faster than planned, potentially freeing up capital for the growth loan book.