The Hindu Business Line : Spandana gets Rs 325-cr investment

"An investment of Rs 250 crore from a bluechip global investor has just been finalised. We are completing documentation and the full details will be disclosed within a week,'' Ms Padmaja Reddy, Managing Director, Spandana, told Business Line.

The Hyderabad-based micro-finance institution, which has a cumulative disbursal of Rs 12, 000 crore so far, would also receive another Rs 75 crore from other investors in the company, including JM Financial, Ms Reddy said. The funds would be utilised to further expand the reach of non-banking finance corporation, which currently operates in 10 States.

"By March 2010, we aim to increase our portfolio from current Rs 2,500 crore to Rs 4,000 crore and the clientbased from 3.2 million to five million. The infusion of investment will help to achieve this,'' she said.

Currently, the promoters hold 51 per cent stake in the company followed by JM Financial with 18 per cent, Valiant, 11 per cent and Lok Capital with 5 per cent. The remaining stake is with the senior employees.

Focus on farmers

Spandana is increasing its focus on catering to the financial needs of small and marginal farmers by extending individual loans. "Last year, we disbursed Rs 30 crore and will end the current year with Rs 150 crore,'' she said.

Even landless farmers (tenant farmers) are also being given loans to start cultivation on lands taken from others as they cannot access bank finance due to inability to show collateral.

"We are also into tractor and dairy financing. There is lot of scope in catering to agri-related finance needs," she added.

When asked on other plans such as offering of health insurance by partnering with an insurer, Ms Reddy replied in the negative by saying: "We understand that involvement of some MFIs in health insurance is not producing desirable results socially and economically.''