Microfinance lender Spandana Sphoorty Financial has stated its goal to grow at a compounded rate of 23% in the next three to four years. According to a vision document prepared by the company, it aims to increase its assets under management to Rs 28000 crore by the end of FY28. The growth will be driven by customer acquisitions while maintaining lower ticket sizes, with a maximum of Rs 80000. The average ticket size per borrower is expected to remain at about Rs 36000. The company’s non-performing assets ratio has decreased, and it has introduced two new loan products, loans against property and nano-enterprise loans, while also considering offering individual retail loans. However, the retail loan segment will be less than 5% of the asset under management mix. Motilal Oswal Financial Services has commended the company’s growth guidance for FY25-FY28 as realistic and not aggressive. The lender’s gross non-performing assets ratio has decreased, indicating improved asset quality. Net non-performing assets have also decreased. The new management at Spandana has successfully managed disruptions and improved asset quality. With strengthened processes, the management aims to capitalize on the opportunities in the microfinance sector. Shalabh Saxena, the former head of Bharat Financial Inclusion, was appointed as the managing director of Spandana in November last year. The broking and advisory firm also estimates a return on assets (RoA) and a return on equity (RoE) of 4.4% and 17% respectively for Spandana in FY26, aided by operating leverage resulting in a decline in operating cost ratios and normalization in credit costs.