Spandana Sphoorty Financial Limited has informed the Exchange about Investor Presentation
Ref: SSFL/Stock Exchange/2023-24/124
Date: December 11, 2023
To BSE Limited, Department of Corporate Services P. J. Towers, 25th Floor, Dalal Street, Mumbai – 400001
Dear Sir/Madam,
To National Stock Exchange of India Limited, Listing Department Exchange Plaza, C-1, Block G Bandra Kurla Complex, Bandra (E) Mumbai – 400051
Subject: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Analyst Day Presentation.
Ref: Company letter No: Ref: SSFL/Stock Exchange/2023-24/120 dated November 26, 2023-Intimation of Schedule of Analyst(s) / Investor(s) meetings under the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015.
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation to aforementioned letter, please find enclosed herewith the Investor Presentation relating to Analyst Day Meet.
Further, the meet shall be available over a live webcast at the link below: https://events.coact.live/spandana
Kindly take the same on record.
Thanking You.
Yours Sincerely, For Spandana Sphoorty Financial Limited
Ramesh Periasamy Company Secretary and Chief Compliance Officer
Encl: as above
Spandana Sphoorty Financial Limited CIN - L65929TG2003PLC040648 Galaxy, Wing B, 16th Floor, Plot No.1, Sy No 83/1, Hyderabad Knowledge City, TSIIC, Raidurg Panmaktha, Hyderabad – 500081, Telangana Ph: +9140-45474750 | contact@spandanasphoorty.com | www.spandanasphoorty.com
SPANDANA 2.0
Vision 2028
₹28,000 Crores by FY 2028
1
Key Drivers
Distribution
2
Risk Mitigation
3
Liabilities
4
Technology
5
People Practices
Distribution
Core Philosophy
Standardizing Processes
Cultural Shift
Scale-up, Productivity & Efficiency
Diversification
Distribution - Microfinance
Customer Acquisition Led Growth
Shorter Tenures
Muted Ticket Sizes
Tracking Indebtedness
Core Philosophy
Scale-up, Productivity & Efficiency
Standardizing Processes
Disbursement
7%
20% - 25%
93%
75% - 80%
Q2FY24
FY28 (E)
Loan Tenure
Monthly
Weekly
8%
3%
89%
10% - 15% 20% - 25%
70% - 75%
24 months
18 months
12 months
Q2FY24
FY28 (E)
Distribution - Microfinance
Rural Focus
Core Philosophy
Borrowers
Borrowers / Loan Officer
~6.2*
450 - 475
317
JLG 5 X 5 X 5
2.7*
Scale-up, Productivity & Efficiency
Standardizing Processes
Diversification
Improving Efficiency
Growth Geographies
Q2FY24
FY28 (E)
Q2FY24
FY28 (E)
* millions Share of new borrowers in quarterly disbursement
44%
56%
30% - 35%
New
Existing
65% - 70%
Q2FY24
FY28 (E)
Distribution - Microfinance
Scale-up, Productivity & Efficiency
Focus on JLG
Standardizing Processes
Input Management
Supervisory Layers for Monitoring & Control
Diversification
Cultural Shift
Streamlined structure for efficient operations
Span of reporting / Case load
3 – 5 VP’s
3 – 5 AVP’s
4 – 5 CM’s
SVP
VP
AVP
Cluster Manager
4 – 5 BM’s
Branch Manager
4 – 5 CA’s
Loan officer
450 – 475 borrowers*
*FY28 ambition
Distribution – LAP & Nano Enterprise
Standardizing Processes
Loan Against Property
Diversification
Cultural Shift
Nano Enterprise Loans
Borrowers
2.5L - 3.0L
<1,500
Q2FY24
AUM
~75x
46*
Q2FY24
* ₹ Crore
FY28 (E)
3,000 - 3,500*
FY28 (E)
Distribution
Automated Reports on Business Parameters
OLTP+OLAP
Data Driven Culture – Data Analytics
Diversification
Cultural Shift
Persona Based Data Availability
Automated MIS
Rule-Engine based Credit Decisions
Branch Selection -> Underwriting ->Disbursement -> Collection -> EWS
*~1 decision every second for loan application (business hours)
Risk Management
Microfinance is about managing risks
Risk Diversification
Risk Monitoring
Analytics & Decisioning
Governance
Risk Management
Geographic Diversification
AUM concentration in Top 3 States
44%
<36%
56%
>64%
Top 3 states
Rest of India
Risk Diversification
Exposure Sizing
Q2FY24
FY28 (E)
Diversifying Asset Book
Analytics & Decisioning
Product Diversification
100%
10% - 15%
85% - 90%
Microfinance
New business
Risk Monitoring
Q2FY24
FY28 (E)
Risk Management
Risk Diversification
Risk Scoring for Branch Expansion
LOS
Rules based ‘Go / No-Go’ credit engine deployed
Analytics & Decisioning
Tech for Risk Assessment & Underwriting
Risk Monitoring
Propensity Modelling for Collections
Governance
Borrower information
Rule 1
Rule 2
Rule 3
Rules based screening
Approved
Rejected
Scorecard based credit decisioning envisaged
LOS
Parameter 1
Parameter 2
Parameter 3
Approved
Scorecard
Rejected
Borrower information
Risk Management
Analytics & Decisioning
Process, Checks & Controls
Risk Monitoring
Reviews & Early Warning Signals
Governance
Supervision through Technology
Enterprise level Risk Monitoring
Operational
Administrative
Human Resource
Finance & Accounting
Well defined thresholds & frequency of risk monitoring
Credit
Compliances
Information Technology & Information Security
Legal & Regulatory
Risk Management
Risk Monitoring
Assessing Controls
Audit Digitization & Active Monitoring
Governance
Branch Level Checks
Compliances
Liabilities
Diversified Borrowing
Debt Management
Cost of Borrowing
Liabilities
Borrowing mix
54 lending partners
<2%
28%
21%
49%
15% - 20%
<=15% <=10%
Banks
NBFC’s
Capital markets
60% - 70%
FPI & ECB
Q2FY24
FY28 (E)
Term Loan
NCD / MLD
Securitization
Commercial Papers
Direct Assignment
ECB
Diversified Borrowing
Cost of Borrowing
Debt Management & Gearing
Liabilities
Q2FY24
Marginal cost of borrowing
12.3%
<11%
Diversified Borrowing
Cost of Borrowing
Debt Management & Gearing
Cost of Borrowing
Debt Management & Gearing
Liabilities
Q2FY24
Gearing
2.3x
<4.0x
CRAR
36.6%
~25%
Technology
IT Infra and Security
Using Tech For Control & Verification
Becoming Future Ready
Process Automation
Analytics & Scorecard Based Lending
Technology
Information Security Preparedness
Information Security Trainings
Prepared for any future disruption
Cloud security
Network Security & firewalls
Data Encryption
MFA
Cloud Based Stable Infra
Information Security Preparedness
Rigorous BCP & DR
IT Governance
IT Infra & Security
Process Automation
Using Tech for Control & Verification
Technology
Automation for Host to Host
Loan Management System
Banking System
Instant credit
Optical Character Recognition Deployment
Mobility Solutions
IT Infra and Security
OCR Enabled KYC Journey
Automation For H2H
Tech Partnerships
Process Automation
Using Tech for Control & Verification
Analytics & Scorecard Based Lending
Technology
Geo-Tagging Customer homes, Centers & Branches
Geo fencing
Branch
Control
Risk Mitigation
Customer Satisfaction
Technology deployed in current operations
Geo- Tagging
Process Automation
Attendance Digitization & Travel Allowance
e-Sign & e- NACH
e-KYC
Using Tech for Control & Verification
Analytics & Scorecard based Lending
Becoming Future Ready
Using Tech for Control & Verification
Analytics & Scorecard based Lending
Becoming Future Ready
Technology
Rule Engine
Automation & Analytics for Performance Monitoring
Automated Reports, Data Lake & Analytics
Automating Incentives
Analytics
Incentive
Automation
Autonomous Self Learning Scorecards
Next-gen Self Learning Scorecards
Rule Engine
Autonomous Self-Learning Rule Engine
Generative AI
Machine Learning
Analytics & Scorecard based Lending
Becoming Future Ready
Technology
Integrated Mobile based Solutions
Safe Harbor Forward Looking Culture: One Spandana, One Application, One Device
Automated Graded Pricing Rule- engine For Non-MFI
Integrated CRM, IVR & Self-service Apps
Leveraging AI – Chat Bot, Fraud Controls
CBDC- Digital Rupee (No smartphone & internet)
Private Blockchain-KYC
Next-gen Tech-stack with Web 3.0
Integrated CRM, IVR, Chatbot with AI/ML
Fraud detection & prevention
Digital transformation is a journey, not a destination
People Practices
People Agenda
Retaining Talent
The Journey Ahead
Attracting Talent
Governance
People Practices
Stable Management Team
13 key positions & Senior Management Team – in place
Mission
Deliver quality financial services for enhancing the
income levels of communities in Bharat
People Agenda
Mission, Vision & Values
Vision
Attracting Talent
Cultural Alignment
Retaining Talent
• To be the preferred choice for customers and employees
in fulfilling their aspirations.
• To positively impact the livelihoods of more than 60 lakh
households by 2028 with an AUM of ₹28,000 Crores.
• To be the standard of excellence in the financial services
industry delivering equitable value for all stakeholders.
People Practices
Sourcing Talent
People Agenda
Building the Middle Layer
12,677
Employees
~21,000
Attracting Talent
Market Competitive Salary
Q2FY24
FY28 (E)
Employee Centric Initiatives
Last Mile Connect
Retaining Talent
Staff Governance
Performance Management System
P R I S M Performance Review with Integral Support & Management
People Practices
Celebrating Success and Performance
Nurturing & Developing Talent
Benefits at par with Industry
Employee Engagement
Culture of Celebrating Success
Attracting Talent
Retaining Talent
Staff Governance
The Journey Ahead
People Practices
Retaining Talent
Fair Practice & Governance
Key policies in place
Statutory compliances
Staff Governance
Code of conduct
Shops & Establishment Act
Employee referral
Minimum Wages Acts
Equal employment & non-discrimination
Bonus Act
Performance management system
Maternity Benefit Act
Transfer & relocation policy
Child & Adolescent Labour Act
The Journey Ahead
Tools to Minimize Risks
Prevention of Sexual Harassment
Gratuity Act
Vigil mechanism and Whistle blower
Employment exchange Act
People Practices
Satisfaction to Delight
Staff Governance
The Journey Ahead
Inclusion & Sustainability
Learning Organization
Employer of Choice
• Build Psychological safety at workplace • Progressive people policy & processes •
Long term retention plan
• Embed a strong, sociable culture • Drive Diversity & Inclusion • Strengthening Governance structure
• Opportunities for Upskilling • • Coding Spandana way of doing business
Identifying critical talent & Hi-pots
• Mapping employee engagement journey • Employer Value Proposition • Have lot of fun!!
Onwards to achieving 28 by 28