Code OF Conduct – spandana

Corporate Governance

Spandana endeavors to operate as a good corporate citizen. In addition to the compliances laid down by the Reserve Bank of India (RBI), Spandana complies with all the statutory compliances laid down under The Companies Act and under various taxation requirements besides the Microfinance Industry’s self regulation norms. Some of the compliances are –
  • Corporate and Social Responsibility Policy
  • Introduction :
    Corporate and Social Responsibility Policy……more

  • Nomination and Remuneration Policy
  • Introduction :
    Nomination and Remuneration Policy……more

  • Compliance to corporate governance guidelines (Reviewed and Modified on 7th July 2016)
  • Introduction :
    Sound governance practices and responsible corporate behaviour contribute to superior long-term performance of companies. A best practice on governance issues is an evolutionary and continuing process. There is no single template to define good governance. Broadly, however, corporate governance practice embodies the dual goals of protecting the interests of all stakeholders while respecting the duty of the board and senior management to oversee the affairs of a company, ensure accountability, inculcate integrity and promote long-term growth and profitability……more

  • Policy for determining Interest Rates, Processing and Other Charges
  • The Loan Assets created by Spandana Sphoorty Financial Limited (SSFL) shall confirm to the following:

    A. Interest Rate Model
    1. The rate of interest shall be based on the cost of borrowed funds, matching tenor cost, market liquidity, refinance avenues, RBI policies on credit flow, offerings by competition, tenure of client relationship, market reputation, cost of disbursements, cost of capital required, inherent credit and default risk in the products and client per se arising from client segment, profile of the clients, stability in earning and employment, subventions and subsidies available, deviations permitted, ancillary business opportunities, future potential, group strength and value to lender group, overall client yield, nature and value of primary and collateral securities, past repayment track record of the clients, external ratings of the clients, industry trends, switchover options, canvassed accounts……more

  • Fair Practice code (Reviewed and Modified on 7th July 2016)
  • The Board of Directors approved the revised “Fair Practices Code” in line with RBI guidelines DNBR (PD) CC. No. 054/03.10.119//2015-16 dated July 1, 2015 ……more

  • Industry code of conduct (Reviewed and Modified on 7th July 2016)
  • Microfinance Institutions (MFIs), irrespective of legal forms, seek to create social benefits and promote financial inclusion by providing financial services to clients of financially un-served and underserved households. Over time, the Microfinance Sector has become an integral part of the financial infrastructure for the vulnerable sections of society in India.

    Hence, it is important to define core values and fair practices for the microfinance sector so as to ensure that microfinance services through MFIs are provided in a manner that benefits clients, and is ethical and dignified.

    This document includes:

    Part I: The Core Values of Microfinance
    Part II : Code of Conduct for Microfinance Institutions (The Code)
    Part III : Client Protection Guidelines for MFIs
    Part IV : Institutional Conduct Guidelines ……

  • Vigil Mechanism and Whistle Blower Policy (Reviewed and Modified on 7th July 2016)
  • Section 177 of the Companies Act, 2013 and the Rules there under, prescribes that (a) every listed company , (b) the Companies which accepts deposits from the public and (c) the Companies which have borrowed money from banks and public financial institutions in excess of Rupees Fifty Crores, shall establish a Whistle Blower policy / Vigil Mechanism for the directors and employees to report genuine concerns or grievances about unethical behavior, actual or suspected fraud or violation of the company’s Code of Conduct or Ethics Policy.

  • Customer Feedback and Grievance Redressal Mechanism
  • Spandana uses customer feedback and grievance redressal mechanism to improve its service quality and also get an independent view on any deviations reported by the customers. The mechanism is multi-layered. It includes –

    Part I : Field level mechanism
    Part II : Branch level mechanism
    Part III : Head Office level mechanism

    It also includes reporting to Industry Associations. Internal Audit is used as a check on reporting deviations to this mechanism and also for ensuring compliance with the Customer Feedback and Grievance Redressal Mechanism… more

For more details please contact –
Head – Corporate Affairs
Plot No:- 31 & 32,Ramky Selenium towers
Tower A Ground floor, Financial Dist
Hyderabad- 500032,
Telangana, India
Ph: +91-040-44386648
Ph: +91-040-44386666