Spandana has been growing at about 100% since its inception. Compounded
annual growth rate (CAGR) for key operating metrics in the last 8 years is shown
in Table 1
Focus on client segment:
At the client level, the loan growth has been in line with the economic growth of
the country. The table shows that the Average loan per annum per borrower and average
loan o/s per borrower has increased in line with the Economic Growth (Inflation
+ Gross Domestic product Growth Rate). This reflects the sustained focus of Spandana
on the business segment of “low-income clients”
Growth in depth of Management: Credit Assistants are the client interface for Spandana supported
by the Managers and Other staff members at different levels of Operations and Support
functions.
Organisation has been well supported by increase in the depth of Management which
prepares Spandana for sustaining the growth.
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Beyond Micro - credit
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With micro-credit, the potential of sustainable business with this client segment
has just been touched and there is a lot to be done in terms of
- going up the value chain
- creating marketing linkages
- provision of safe drinking water
- renewable energy consumption
- affordable health services etc.
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The Spandana saga continues
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Table - 1
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FY 2002
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FY2010
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CAGR
|
|
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Gross Loan portfolio (INR million)
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46.7
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35,405
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129%
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No. of clients (in '000s)
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16.4
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4,164
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100%
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No. of Branches
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8
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1,533
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93%
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No. of Total Staff Members
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38
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10,428
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102%
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Table - 2
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FY 2000
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FY2010
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CAGR
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Spandana
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Avg. loan outstanding per borrower (INR)
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2,873
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9,666
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12.9%
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India
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Inflation (Consumer Price Index, Base: 1960)
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2,053
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3,896
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6.6%
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Gross Domestic Product (USD Bn)
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469
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929
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7.0%
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Overall Economic Growth
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13.6%
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Key strengths can
be viewed in terms of
A. High latent franchise value out of -
- A very large client outreach.
- Good brand recall among the clients.
- Low degree of penetration into the client wallet – liability products and opportunity
in terms of untapped non-financial services.
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B. In areas where we have been operating for a long time -
- New products and processes being tested in these areas is showing good results showing
the strength of the delivery capability.
- Current client base has large credit absorption. potential if proposition is available
higher up the value chain.
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Continued potential for growth - As an engine of Financial Inclusion, Spandana’s growth potential
can be viewed in terms of –
- Over 90% of unbanked/ low-income clients across India continue to be unreached by
affordable and readily available credit.
- For the clients already reached, product diversification will help us go up the
value chain.
- From the current branch network, many more financial and non-financial services
can be provided to the client segment – e.g demand deposits, if we get into banking
and affordable education.
- With the competency to reach out to low-income households at their doorsteps efficiently,
we can leverage the other client segment.
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