New strategy. Spandana Sphoorty to focus on expanding customer base

G Naga Sridhar Updated - October 31, 2022 at 05:42 PM.

Spandana has a disbursement target of about ₹8,100 crore for the current fiscal

Spandana Sphoorty Financial has acquired 1.23 lakh customers during the second quarter ended September 30, 2022, marking a growth of 16 per cent over the same period last year and plans to continue its focus on new customer acquisition going forward.

``Our growth story will be led by customer acquisition and hence we are building the blocks both culturally and identifying pockets of growth to further our plans,’‘ Shalabh Saxena, Managing Director and CEO Spandana Sphoorty Financial said.   

The Hyderabad-based MFI believes that a new set of customers entering its books is a good way to refresh its portfolio ``They are obviously in geographies where their liabilities are less plus they are more current in terms of the way the Joint Lending Groups (JLG) works,’‘ Saxena  said while responding to questions in the Q2 earnings call. 

Churning of porfolio

Spandana wants to churn the existing customer base a little bit and identified about 4 to 5 lakh customers who are likely to exit from existing relationship with the company at some stage going forward. 

`` A new set of customers entering your books is always a good way to refresh your portfolio. So this is a part of a conscious strategy and that is why 46 of the 100 customers that we have disbursed in the last quarter are new customers to Spandana,’‘ he said adding that the this approach of new customer acquisition until FY25.

Spandana has a disbursement target of about ₹8,100 crore for the current fiscal and its book now stands at ₹5,782 crore. Out of this, ₹4,730 crore has a net collection efficiency of 97.5 per cent. ``This is slated to improve over the next couple of quarters,’‘ the CEO said. 

Published on October 31, 2022 12:12

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