India’s Leading BFSI and FinTech Companies 2021

191 India’s Leading BFSI and FinTech Companies 2021 Advertorial Spandana Sphoorty Financial Limited Spandana Sphoorty Financial Ltd (Spandana) was founded by Mrs. Padmaja Reddy in 1988 as a society and was subsequently transformed into a non-banking financial company (NBFC) registered with the Reserve Bank of India. With the release of NBFC- Micro Finance Institution (NBFC-MFI) as a new category of NBFCs, the company was later reclassified as an NBFC-MFI in 2015. Moving forward, the company went on to be listed on Indian stock exchanges in August 2019. The key mission of the company is to extend financial services to the economically weaker sections of society and to strengthen the socio-economic status of low-income households, particularly women, who remain unbanked and underbanked in rural as well as urban areas. From its humble beginnings in 1988, the company has grown multi-fold to become one of the largest MFIs in India. Spandana has a pan-India presence across 17 states and one union territory. About 95% of the company’s borrowers are based in rural areas, while 57% of them engage in essential services like dairy or agricultural activities. Product Offerings The company endeavors to become a one-stop-shop of all its borrowers’ financial requirements. Spandana follows both, group-based and individual micro-credit lending models, wherein the loans are extended to individuals based on their household economics. Other than micro-credit, the company offers various other loan products including agri-family loans, farm equipment loans, small mortgages, and loans against gold jewellery, among others. Some of the key products offered by Spandana are as follows: - a) Abhilasha (JLG Loans): Designed especially for low-income households. b) Loans against property: Provided against the mortgage of Residential Properties/ Commercial Shops (excluding any open plots on agriculture land). c) Personal loans: Offered exclusively for business development, purchase of livestock, house construction / renovation, or any other emergency needs. d) Gold Loans (Keertana): Offered against mortgage of jewellery. e) Interim Loans: Meant to assist borrowers struggling to meet short-term liquidty requirements. Performance Highlights: FY20 • As of March 2020, the company’s consolidated Assets Under Management (AUM) stood at ` 68,291 mn, which translates into a y-o-y growth of 56%. • During FY20, the company expanded its operations to Haryana. Its branch network grew from 925 branches at FY19-end to 1,010 at the end of FY20. • During the year, the company forayed into 16 new districts, taking its presence to 280 districts across the country as of 31 March, 2020. The branch expansion also increased the strength of loan officers by 1,430, taking their total count to 6,103 at end of the fiscal. • During FY20, the company launched a new product - Blue Lemon, which is a consumer goods financing product. • The average loan outstanding per borrower of the company as at the end of FY20 was ` 26,610 as compared to an industry average of ` 37,465, which indicates better repayment ability of Spandana’s borrowers. Padmaja Gangireddy Managing Director Dun & Bradstreet D-U-N-S® No 67-791-0830 Plot 31 & 32, Ramky Selenium Towers, Tower A, Hyderabad - 500032, Telangana www.spandanaindia.com Financials ( ` Mn) Total Income Total Assets Net Profit 14,414.1 59,417.8 3,366.9 TI Growth (%) Assets Growth (%) NP Growth (%) 38.4 21.3 9.1 Key Ratio (%) Net Profit Margin Return on Assets 23.4 5.7 Management Details Chairman Deepak Calian Vaidya Managing Director Padmaja Gangireddy Independent Directors Abanti Mitra Bharat Dhirajlal Shah Jagadish Capoor (As on Mar 31, 2020) Dun & Bradstreet