Not sure why we are fixated on the figure of Rs 4000 Cr. Simply put, On Book Assets of Rs 40,000 Cr (for co-lending AUM of Rs 100,000 Cr) will require an ROA of 10% to generate a profit of Rs 4000 Cr which is absurd.
Let’s look at this from another lens – that of the total pie available to divide. Assuming total loans outstanding of Rs 100,000 Cr in FY27 given out at 8.5% rate of interest (remember, this is the most prime customer out there). Further assuming cost of funds for the partner bank at 6.5% and for Sammaan Capital at 8.5%, the total pie of gross profit available for distribution between the bank and Sammaan is as follows: –
Interest Income – Rs 8500 Cr
Fee Income @ 0.5% (origination of Rs 35,000 Cr) – Rs 175 Cr
Total Income – Rs 8675 Cr
Interest Expense (Bank) – Rs 5200 Cr (6.5% on 80% of AUM)
Interest Expense (NBFC) – Rs 1700 Cr (8.5% on 20% of AUM)
Total Interest Expense – Rs 6900 Cr
Total Gross Profit available for distribution – Rs 1775 Cr. Whichever way you slice it, the total gross profit cannot be more than what the customer pays minus the cost of funds.
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