Hyderababad-based microfinance major Spandana Sphoorty Financial Ltd has identified seven states where its market reach has been significantly constrained currently and wanted tap their real potential for future growth. These seven states are primarily located in the northern part of the country, and it has included Tamil Nadu in the southern region also in this new growth plan.

Although Spandana has some presence in these markets at present, the company believes that they still offer huge untapped opportunity. Therefore, it targets to increase its market share from the current 0.3-0.4 percent to at least 2-2.5 percent in the near future.

Spandana Sphoorty's CEO and Managing Director Shalabh Saxena said in an interview with CNBC-TV18 that the company's ambitious expansion plan is aimed at tapping these previously underserved markets.

Saxena said that the company's market share in these seven states, which are now identified for growth, is currently minuscule, and these regions are now set to become the central point for substantial growth. Saxena, however, didn't specify these northern states by name.

More importantly, the microfinance institution anticipate most of its growth will now originate from these newly identified regions, though they are not entirely new to the company.

“So, for Spandana Sphoorty, the growth will come from these seven states, and at an enterprise level we will continue to focus on new customer acquisition,” Saxena added.

Continuing the discussion on the real market potential, Saxena said that the general consensus is that there is still plenty of opportunity in these markets, making it an opportune moment for further investment.

Even as the company yet to make a direct research to get an estimated demand in these markets, and the current data is mostly through indirect sources and media reports, both the management and the board have supported the fresh plan, and it is moving forward with it.

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(Edited by : C H Unnikrishnan)