Eight years ago, Spandana Sphoorty Innovative Financial Services Ltd (SPANDANA), began its operations from a single office in the bustling town of Guntur, deep in the heart of Andhra Pradesh. At the time it had only eight employees. The first loan offered by the fledgling organisation to a handful of poor women was Rs 2,000 (USD 44). Today, the Microfinance Institution (MFI), currently registered as a non banking finance company extends financial services to over 1 million women and has a network of 300 branches which employ 2,000 staff.

Spandana’s operations are primarily concentrated in the state of Andhra Pradesh where it delivers financial services in 21 of the state’s 23 districts through 216 branches. In each of these 21 districts there is at least one branch operating under the ICICI Bank partnership model. Since the partnership began in 2003, the two organisations have worked very closely with each other.

The results of the partnership are reflected in its growth figures: in the year 2004-2005, as the partnership took effect, membership in Spandana increased by 237 per cent—the greatest increase in its history. In the same year, the number of active members taking loans increased by 250 per cent, also the greatest jump in its history. Between the years 2005-2006, the number of borrowers at Spandana has increased from 390,000 to 1,000,000.

Part of this phenomenal increase can be attributed to its collaboration with a large mainstream partner like ICICI Bank. Spandana’s partnership with ICICI Bank benefits both organisations. ICICI Bank, through its association with Spandana, is able to reach an underserved market segment. The partnership benefits Spandana by providing it with steady access to funds. Ultimately, the partnership benefits those women who can obtain the much needed financial services as they try to come out of the clutches of poverty and deprivation.

Spandana has recently entered urban areas in Hyderabad. For over a year now they have catered to the needs of 60,000 clients with a cumulative disbursement of Rs 30 million (USD 0.67 million). With a view to scaling up in the future, Spandana is looking at other segments like small and medium entrepreneurs, small-scale industries, and farm sectors. The organisation also sees itself focusing on individual lending in the future, as that allows for more specialised loans.