• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

G. Naga Sridhar

Hyderabad, April 8 Microfinance firm Spandana Spoorthy Innovative Financial Services Ltd will be expanding its operations in north India.

The Hyderabad-based company, with presence in 10 States, including the recent entry into Madhya Pradesh and Chhattisgarh, would be moving into Bihar and Uttar Pradesh soon, Ms Padmaja Reddy, Managing Director, Spandana, told Business Line here.

The company, which has just raised Rs 900 crore in loans from 15 banks, plans to mobilise another Rs 100 crore through the equity route soon. “We are in advanced talks in this regard which are likely to be closed in about two months,” she said. At present, the promoters hold 65 per cent of equity.

The proceeds of the funds raised would be primarily utilised for the expansion, she said.

The total disbursements for the company now stand at Rs 2,500 crore with Rs 730 crore loans outstanding. “We now have 1.25 million clients. By the end of 2008-09, our target is to reach lakh clients,” Ms Padmaja said.

A pilot loan product, Agri Family loan, introduced in two districts of Andhra Pradesh recently, has been successful. “We are optimistic about the business to be generated out of agri family loans. We will be introducing it in other centres with a target to disburse a minimum of Rs 100 crore,” she added.

Agri family loans are small ticket loans in the range of Rs 10,000 to Rs 40,000 and carry an interest of 18 per cent (on diminishing basis).

Spandana is also planning to expand its tractor and dairy finance portfolios. “There is lot of demand for tractor finance in rural areas. Initially introduced in Andhra Pradesh about six months ago the tractor finance scheme is now being taken to Karnataka. Till now, we have financed 950 tractors (Rs 26.75 crore),” she said.

More Stories on : Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Spandana to expand in northern region

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line