Sammaan Capital Ltd (NSE: SAMMAANCAP) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Gagan Banga — Vice Chairman and Managing Director
Analysts:
Unidentified Participant
Asm Raju — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Saman Capital Limited Q1FY26 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 touchstone phone. I now hand the conference over to Mr. Aryan Sumra. Thank you. And over to you sir.
Unidentified Speaker
Thank you. Good evening ladies and gentlemen. I welcome you all to the Q1 FY26 earnings conference call for Samban 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 risk and uncertainty. 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 Kagan sir for his opening remarks and then we’ll open the floor for Q and A.
Thank you. And over to you sir.
Gagan Banga — Vice Chairman and Managing Director
Thank you. A very good day to all of you and I welcome you to our quarter one 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 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 buy 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 dispersals 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 adoption and relentless innovation, we have set the industry benchmarks, helped partner banks augment their mortgage lending while ensuring high quality long tenor portfolios and rapid execution through our technology enabled platform.
The 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 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 also invested heavily in our proprietary data aggregator model which we call ue, which works as a secure and efficient data transfer bridge and between us and our banking partners. It enables seamless real time exchange of customer and loan data, 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 watertight 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. 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 number, I request you all to turn to slide four of the earnings update. In quarter one fiscal 26 our net worth has increased to 22% from 22,137 crores to. Sorry, a typo at my end our net worth increased to 22,137 crores from 21,822 crores at the end of fiscal 25 reflecting continued capital accretion on the AUM front, total book ended at 62,378 crores with gross AUM at 39,805 crores forming 64% of the total, up from 37,452 crores at the end of quarter four.
The legacy AUM continues to run down and is in line of our H1 projections where we are expected to collect approximately 6,000 crores and the legacy AUM stands at a little over 23,000 crores. Now the net interest income came in at 1200 crores, the PPOP at 993 crores and the profit after tax was stable at 334 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 Command Finserv, 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%. Slide 8 to 12 give granular details of the growth AUM. The last seven years have tested our AUM from an asset quality perspective and we’ve 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 8 provides greater depth of our Saman Capital and Saman Finserv 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 Saman 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 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 borrower needs to 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. We have partners which are leaders in their own spaces. Digilocker is a government initiative, compository, risk recovery, sign desk, et cetera 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 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 four to five months beyond the basic level integration which was required under track 2 co lending, we expanded that such that decisioning can be done parallel 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 first January 2026 we will have a fairly unique tech edge both in being able to evaluate a borrower, sanction a loan, integrate with a bank, send the information to a bank and get the whole co lending loop closed all digitally. As we look to expand Saman Finserve into the hinterland of India and Saman 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 Saman Finsergs our home loans are all of 15 lakh rupees of ticket size. The lip loans are loans given to secured loans given to micro businesses at 25 lakh of rupees 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 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 or 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 Einsurance platform. Most of the paperwork gets completed for registration etc. A physical visit is required. That’s probably now the Only relevant physical leg left to this journey. As a monoline company, both Saman as monoline companies, both Saman Capital and Saman Finserv have digitized the entire journey. This, as I said earlier, enables us to 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, etc. 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 began 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 three 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 etc. 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 2000 people of which around 1300 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 in number. In terms of trying to understand what kind of a retail book is being built, 83% of the book is residential property backed. This is all detailed on Slide 11. It is geographically well distributed at a ratio of current ratio of about 60% on salaried and self employed going to about 5050 between salaried and self employed with a moderate loan to value.
The home loan loan to value is at 70% and for the LFP loans it is around 55%. We’ve had a long history of doing business with banks with the history denominator being over a lakh crore now or roughly a lakh crore 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 2000 crores in quarter one fiscal 26. And with this tech leveraged approach and the expansion of co lending, I would imagine 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 Saman Finserv 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 three quarters bring in into Saman Finser a strategic partner who is rating accretives. The necessary interaction with the regulator is currently on and we are fairly confident that over the next nine 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 Samanth Finserve from a tech people, etc. Perspective such that that organization has its own distribution branch network and Saman Capital has its own focus, while Saman Finserve has its own distribution and focus that required fresh hiring.
That also requires certain degree of organizational restructuring at the management level. Over the course of the next three weeks we should be in a position to complete the process of appointment of the Deputy CEO of Saman Capital. That process has progressed materially. The NRC of the Board is seized off 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 three 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 Saman 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 equity partner coming in at Saman Finservice. The arrival of a new equity partner with a strong market reputation should be rating accretive for the Saman Finserve entity and should Also have a positive rub off on Saman 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 one is leading well into quarter two and we are very confident of being able to achieve 6 to 7,000 crores of collections. As far as the legacy book is concerned, in the first half of the year we projected a rundown of 8,000 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 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 that 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 etc. 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 seven 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 a lakh and a half, 1.5 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 two last year was strategic from a perspective of isolating Saman Finser Quarter two, fiscal 26 is strategic from a variety of perspectives. At the manpower level I mentioned, over the next two to three weeks we should be doing senior level appointments as senior as the deputy CEO.
Making sure that the top deck of Saman Finserv is fully empowered to take home a transaction and get on board equity partner which should be accretive to Samanth Finserv’s credit rating. At Saman capital level, we are already 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 borrowings have started on balance sheet borrowings have started increasing. The asset light strategy, despite the rundown of past BTC transactions that we had done for 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 six 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.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchdown telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Ankita Agarwal from NJT Advisor. Please go ahead.
Unidentified Participant
Hello, Am I audible? Yes, please go ahead.
operator
Please go ahead.
Unidentified Participant
So could you just provide an update on your borrowing mix, cost of funds and also the duration profile of liabilities.
Gagan Banga
So our liabilities, ma’, am, as would be evident from the alm, would typically have average maturity of roughly about five 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 8,000 crores of principal comes due every year.
Unidentified Participant
Okay, thank you sir. 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 FY26. And also will you prioritize maintaining balance sheet strength?
Gagan Banga
So my 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. 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 Samantha. So the idea would be to continue to grow the AUM without necessarily increasing the leverage. Leverage which is around 2 times, should remain in the same range of 2 to 2.5 times.
operator
Thank you. The next question is from the line of Darshal Zaveri from Crown Capital. Please proceed.
Unidentified Participant
Hello. Good evening, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of results in Q1. Hopefully I’m audible.
Gagan Banga
Yes, you are. Thank you.
Unidentified Participant
Yeah. Hi sir. So I just wanted to ask a bit about our provisioning policy. So in Q1 we have, you know, provided for around 466 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.
Gagan Banga
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 enhanced the provision buffer. We had a change in the accounting policy as far as derecognition of assets is concerned. And from some actuarial based model, we made it actual contracted basis that resulted in a one time increased income of approximately 400 crores which has been used to create additional provisions. Aside of these one time events, our annualized credit costs would be 100 basis points.
Unidentified Participant
Okay. 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?
Gagan Banga
So it should be in the range of about, I would imagine a hundred odd crores per.100 odd crores or so per quarter. Unless we get some one time sort of income. If it comes, then we continue with a policy which is now several years old. All one time income goes into provisions.
operator
Thank you. The next question is from the line of Nishin from Quota Constitutional equity. Please proceed.
Unidentified Participant
Hi. Thanks for taking my question. I’m just trying to kind of, you know, connect the dots. Just reconfirming, you know, your aums are around 62 or 1000 crores. And I guess the Loans on balance sheet will be closer to 4950 and the balance amount, you know is it fair to say is are the loans which are outside the balance sheet. And if that’s the case then how do we collaborate the, you know the 732 odd crore income on net gain on the recognition of financial instruments. This is for the quarter.
Gagan Banga
Yeah. 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 assuming that PTC instruments continue to be on the balance sheet the balance 14 15,000 crores will be off the balance sheet.
Unidentified Participant
And this 732 is the one time income, right. Of whatever you would have sold out of the 1213,000 crores during the quarter.
Gagan Banga
This is the one time income from the entire soldown book. Not from the two odd thousand crores or transactions done this quarter from the entire 15,000 odd crores.
Unidentified Participant
Okay so this is, this is a. The. The amortized and animota is both put together.
Gagan Banga
Yes.
Unidentified Participant
Got it. So, so just. Sorry just, just if I can continue with this. What proportion do you book on a amortized basis and where do you book it upfront of the 12,000?
Gagan Banga
There is a line income booked from via derecognition of assets there. 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 150 crores of income via derecognition starting next quarter which has been the track for some time now.
operator
Thank you. The next question is from the line of Vikram Damani from Damani family office. Please proceed.
Unidentified Participant
Hi. Am I audible?
operator
Yes sir. You are.
Gagan Banga
Yes sir.
Unidentified Participant
Okay, so just one clarity. On slide 5 you mentioned that your disbursements are 3736 crore and on slide 12 it says 2640 crore. So just wanted to know the. If you can explain the difference between the two please.
Gagan Banga
26:40 would be the co lending, direct assignment kind of transactions that we would have completed with our partners. The gross dispersal 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.
Unidentified Participant
Okay, so we’ve disbursed the amounts. It’s just that it’s not yet gone under the asset light model. That takes that the difference is due to the time lag in assigning the loans.
Gagan Banga
Correct. And 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.
Unidentified Participant
Sorry, please continue. Up to you.
Gagan Banga
Offhand I cannot. We can do that exchange over email.
Unidentified Participant
Okay, I’ll reach out to your. To your team for this. Yeah. Thank you. And all the best.
Gagan Banga
Thank you.
operator
Thank you. The next question is from the line of as Raju an investor. Please proceed.
Asm Raju
Good evening sir.
Gagan Banga
Good evening.
Asm Raju
To see you are happy to hear total revenue growth. But the cost of interest is not coming down though we are having a cash of 22000 odd crores of net worth. So what is the next two years earnings projections? And the other question is what happened to the wholesale book and dividend for the last year?
Gagan Banga
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 25,000 crores. And this year it should come down further to approximately 15,000 crores. As for dividend is concerned, we will have the AGM sometime in September as part of the resolutions 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.
Asm Raju
What is the earnings projection sir for this year and next year?
Gagan Banga
So we would be looking at getting to a teenage kind of low teenage kind of ROE by fiscal 27. That’s the projection that we’ve given and that’s what we would like to believe that we should be able to get to.
operator
Thank you. The next question is from the line of Neeraj Vijay Kamtakar from Prospero 3PMS. Please proceed.
Unidentified Participant
Hello. Am I audible?
Gagan Banga
Yes you are sir. Thank you.
Unidentified Participant
Hello.
Gagan Banga
Yeah, please go ahead with your question.
Unidentified Participant
Thank you. Thank you sir. Thank you sir. Companies constantly focusing on reducing the legacy book. And I think the 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 126 the legacy book is reduced by 1413 crore rupees. I would like to know how much by collection of the and how much is by making the fresh provision out of the outstanding legacy book.
Gagan Banga
All of it is through collection, sir. It is, I would say 95, 98% is through collections.
Unidentified Participant
And sir, what is the expectation? The what whatever the today outstanding at the end of the quarter one. How much the company is likely to make the provision out of the balance amount?
Gagan Banga
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 8,000 crores. So we have imputed provisions which is provisions plus recoveries of approximately 8,000 crores covering this 23,24,000 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. First I’ll take one last question please.
operator
Yes sir. Yes sir, the last question is from the line of Chintan Mehta from Pishka family office. Please proceed.
Unidentified Participant
Thank you so much sir for the opportunity. Sir, one of the interviewer TV mentioned that we are trying to monetize some strategic partner at Someant since so by when we are looking to do that, sir.
Gagan Banga
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 three 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 Saman Finser. That exercise we would like to have finished latest over the next nine months. Yeah. So thank you. Thank you all for your questions and as you may have noticed, these are fairly exciting times for us. There is 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.
operator
Thank you on behalf of Samba Unlimited. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines.