Exclusive | Axis Bank to buy Spandana Sphoorty
In a mutually beneficial deal, Axis Bank is looking at reducing its priority sector lending cost with the acquisition. For Spandana Sphoorty, the Bank’s lower cost of funding will help expand business
June 04, 2021 / 12:59 PM IST
Axis Bank is in talks to acquire Spandana Sphoorty, which is also reportedly open to exploring a complete sale, say people in the know.
Two sources with direct knowledge told Moneycontrol that Axis Bank is in talks to acquire micro financier, Spandana Sphoorty.
Interest in this deal has been evinced on both sides and it has been in the works for a while, the sources shared.
Axis Bank is looking at reducing its priority sector lending (PSL) cost with the acquisition.
Spandana Sphoorty’s customer base will not only help it expand its base but will also give Axis Bank the ability to cross sell its various products and services.
Sources suggest that Spandana Sphoorty has been open to a sale proposition. Axis Bank as a large parent and lower cost of funding will help its business.
Axis Bank declined to comment on the query.
E-mails written to Padmaja Reddy, Founder & MD of Spandana Sphoorty, did not get a response.
Spandana Sphoorty Financial is a non-banking financial company - microfinance institution (NBFC-MFI).
The company is primarily engaged in the business of microfinance providing small value unsecured loans to low-income customers in semi-urban and rural areas.