Shalabh Saxena, Chief Financial Officer (CFO) at Spandana Sphoorty, on Tuesday, October 31, discussed the microfinance institution's growth and plans for the near future. Saxena said that the company may conclude the financial year 2024 with Asset Under Management (AUM) of ₹12,000 crore.

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"One of the achievements of Spandana has been its ability to deliver Return on Assets (RoAs) ranging from 5.5% to 5.8%. These figures surpass the guidance of 4.5% set forth in Vision 2025 document," Saxena told CNBC-TV18.

Looking ahead, the CFO said, Spandana Financial Services remains resolute in its commitment to achieving an AUM of ₹15,000 crore by financial year 2025, as originally outlined in their Vision 2025 document.

"Spandana's net interest margin, currently standing at 13.75-14%, reinforces its financial stability and sustainability," he said.

In another development, three major Public Sector Undertaking (PSU) lenders, namely SIDBI, NABARD, and SBI, have come forward to support Spandana Financial Services.

"Another encouraging sign for Spandana is that its cost of funds appears to have peaked out, which bodes well for the institution's future profitability. This stabilising cost structure will allow Spandana to further strengthen its position in the MFI sector," Saxena said.

(Edited by : Anshul)