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Axis Bank, one of the largest private sector Bank in India is reportedly in discussions to purchase Spandana Sphoorty. As per sources, Spandana Sphoorty is also open to exploring a complete sale. It is a non banking financial company- microfinance institution and is engaged in the business of microfinance providing small value unsecured loans to low income customers in rural and semi urban areas.
The sources informed that the agreement has been in discussions for a while now. Both the sides, Axis Bank and Spandana Sphoorty’s interest are being considered in the deal. With this purchase, Axis Bank is aiming at bringing down its priority sector lending (PSL) cost.
This agreement will help the microfinance institution, Spandana Sphoorty’s customer base to grow. On the other hand it will give Axis Bank the opportunity to cross sell its various product and services.
According to the sources opinion, Spandana Spoorthy has been open to a sale proposition. Axis Bank as a large parent and lower cost of pending will help its business.
Axis Bank refused to give a statement on the issue. Emails written to founder and MD of Spandan Sphoorty, Padmaja Reddy, but no response was received from their side.