About Spandana Sphoorty – Current Snapshot

Spandana is focused on improving the socio-economic status of low-income households, especially

women in the urban and rural areas with a range of financial products and services. Spandana’s
current market share in terms of branches and client base was 6.8% and 6.9% respectively in FY18.
The organization currently operates in 15 states with over 694 branches across the country. Spandana
started off as predominantly urban focussed organization, but now has around 86% of under-served
and under-penetrated rural clientele. Spandana has an average ticket size of INR 22,826 and AUM of
INR 31,664 million.

Amongst the products offered by Spandana, the “Abhilasha” loans or the income-generation loans
constitute nearly 87% of their gross AUM. The loans, provided for a tenure of 1-3 years, are offered to
women to purchase productivity assets such as cattle, sewing machines; setting up income generation
activities such as small shops, and smoothening household cashflows. The other loans offered include
loans against property, gold loans i.e. loans against mortgage of jewellery, interim loans which are
top-up loans given to existing borrowers to meet capital or emergency needs and Shree loans which
are provided in AP to help smoothen cashflows. The branches also offer their existing borrowers
consumer goods which they believe increase productivity and improve quality of life through a
voucher system.

Spandana has been traditionally known to have the lowest OPEX ratio in the industry with a value of
4.9% in FY18. Their operational efficiency stems from their streamlined procedures and efficient
workforce. The branch level systems offer real-time information about the collections and demands
which reduce the cost and time of the operations.