Hyderabad-based micro finance institution (MFI) Spandana Sphoorty Financial has raised Rs 400 crore from IndusInd Bank and Bank of Baroda by issuing pass through certificates (PTCs) to both the banks for securing this funding. Spandana has also drawn up plans to go public and is in the process of appointing merchant bankers. Spandana was founded by Padmaja Reddy in 1998 with an aim to provide unsecured income generation loans, micro-enterprise loans, agricultural family loans and loans-against-gold to low-income clients in rural and semi-urban areas. The MFI has so far securitised\u00a0Rs 810 crore of loans in its portfolio and raised funds against them from banks and financial institutions. Kotak Mahindra Bank, Mahindra & Mahindra Financial Services, Yes Bank and Hinduja Leyland Finance are among the entities which have funded Spandana through PTCs in the past. Spandana has raised aggregate funds amounting to Rs 2,100 crore in April to December 2017 from 23 banks and financial institutions via PTCs, term loans and capital market instruments. \u201cThe portfolio increased from Rs 1,300 crore to Rs 2,600 crore in the current financial year and we will cross Rs 3,200 crore by the end of this fiscal,\u201d Padmaja Reddy, MD, said. The company is back on track and expects to regain its leadership position in the industry following a corporate debt restructuring (CDR). \u201cWe are delighted to do this securitisation deal with Bank of Baroda, one of the CDR lenders and first PSU lender to Spandana, post CDR,\u201dshe added. Spandana\u2019s operations are spread across 14 states through 640 branches. It serves 12 lakh borrowers in 202 districts and 48,000 villages. It was the one of the largest MFIs in India from 2003 to 2010, till its operations got impacted by the crisis in Andhra Pradesh, after the state government clamped down on micro-loans following several suicides due to indebtedness. Post the AP crisis, Spandana got into CDR. In March, 2017, the company successfully exited from CDR and today it has 13 lakh borrowers across 14 states with a work force of 3,500. Spandana has also found renewed support from investors. Last month, Spandana raised Rs 125 crore in equity from Kedaara Capital and Ontario Teachers\u2019 Pension Fund (OTPP). This is the second equity raise after its emergence from the CDR in March 2017. The company had earlier raised Rs 514 crore from Kedaara Capital in March 2017. The company has a networth of Rs 750 crore.