Latest news with #AshishKumarDamani
Economic Times
7 days ago
- Business
- Economic Times
Spandana Sphoorty posts Rs 360 crore Q1 loss on bad loan impact
Microfinance company Spandana Sphoorty Financial suffered a consolidated net loss of Rs 360 crore in the first quarter of the fiscal, making it the fourth consecutive quarterly loss, on account of high asset quality stress and drop in business volume as well as income. ADVERTISEMENT The lender had earned a consolidated net profit of Rs 56 crore in the year ago period. Thereafter, it reported losses in every quarter. Its consolidated income fell 59% year-on-year at Rs 304 crore against Rs 734 crore. Provisions to cover bad loans were higher at Rs 422 crore as compared with Rs 209 crore. "The losses for the quarter ended June 30, 2025 were mainly due to significantimpairment losses (including technical write offs) arising from credit deterioration of loans to customers," the company said in a stock exchange wrote off loans to the tune of Rs 581 crore in the June quarter, contributing to the elevated credit costs. ADVERTISEMENT "This will be improved going forward by strengthening on-ground recovery. Accordingly, the Company expects to generate sufficient taxable profits to fully utilize the losses," the company said in a joint statement by chairperson Abanti Mitra and interim chief executive officer Ashish Kumar Damani. Unlock 500+ Stock Recos on App The consolidated loss before tax for the June quarter was Rs 481 crore. ADVERTISEMENT Spandana recognized a deferred tax asset of Rs 544 crore to the extent it is considered recoverable, based on probable future taxable income supported by revised approved business plans and budgets. The lender's standalone loan book contracted to Rs 3877 crore at the end of June from Rs 5555 crore three months prior to that. Gross non-performing assets ratio was at 4.88% at the end of June as compared with 4.85% three months back. Net NPA remained at 0.96%. ADVERTISEMENT The company's consolidated assets under management stood lower at Rs 4958 crore, as compared with Rs 11723 crore a year back. The GNPA for the consolidated balance sheet was 5.49% against 2.60% a year back. Spandana was non-compliant with certain covenants related to portfolio at risk, gross NPA, tangible net worth, and quarterly profitability as of and for the quarter ended June 30. It has obtained waivers in respect of such non-compliant covenants from few of the lenders. "The company has been in constant communication with its lenders and is confident that no demand for immediate repayment of borrowed funds will be made due to non-compliance with the covenants," it said. ADVERTISEMENT The company management is of the view that it would be able to realise all its assets and discharge all its liabilities in the normal course of business. "There are no material uncertainties on the company's ability to continue as a going concern," it said. It has a strong capital position, with tier I capital of ₹1,245.53 crores and a capital to risk-weighted assets ratio of 37%. It has successfully raised fresh investment of Rs 200 crore through a partly paid rights issue of shares. The balance Rs 200 crore of the Rs 400-crore rights issue will be realised at a later date.
Time of India
7 days ago
- Business
- Time of India
Spandana Sphoorty posts Rs 360 crore Q1 loss on bad loan impact
Microfinance company Spandana Sphoorty Financial suffered a consolidated net loss of Rs 360 crore in the first quarter of the fiscal, making it the fourth consecutive quarterly loss, on account of high asset quality stress and drop in business volume as well as income. The lender had earned a consolidated net profit of Rs 56 crore in the year ago period. Thereafter, it reported losses in every quarter. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Its consolidated income fell 59% year-on-year at Rs 304 crore against Rs 734 crore. Provisions to cover bad loans were higher at Rs 422 crore as compared with Rs 209 crore. "The losses for the quarter ended June 30, 2025 were mainly due to significant impairment losses (including technical write offs) arising from credit deterioration of loans to customers," the company said in a stock exchange filing. Live Events It wrote off loans to the tune of Rs 581 crore in the June quarter, contributing to the elevated credit costs. "This will be improved going forward by strengthening on-ground recovery. Accordingly, the Company expects to generate sufficient taxable profits to fully utilize the losses," the company said in a joint statement by chairperson Abanti Mitra and interim chief executive officer Ashish Kumar Damani. The consolidated loss before tax for the June quarter was Rs 481 crore. Spandana recognized a deferred tax asset of Rs 544 crore to the extent it is considered recoverable, based on probable future taxable income supported by revised approved business plans and budgets. The lender's standalone loan book contracted to Rs 3877 crore at the end of June from Rs 5555 crore three months prior to that. Gross non-performing assets ratio was at 4.88% at the end of June as compared with 4.85% three months back. Net NPA remained at 0.96%. The company's consolidated assets under management stood lower at Rs 4958 crore, as compared with Rs 11723 crore a year back. The GNPA for the consolidated balance sheet was 5.49% against 2.60% a year back. Spandana was non-compliant with certain covenants related to portfolio at risk, gross NPA, tangible net worth , and quarterly profitability as of and for the quarter ended June 30. It has obtained waivers in respect of such non-compliant covenants from few of the lenders. "The company has been in constant communication with its lenders and is confident that no demand for immediate repayment of borrowed funds will be made due to non-compliance with the covenants," it said. The company management is of the view that it would be able to realise all its assets and discharge all its liabilities in the normal course of business. "There are no material uncertainties on the company's ability to continue as a going concern," it said. It has a strong capital position, with tier I capital of ₹1,245.53 crores and a capital to risk-weighted assets ratio of 37%. It has successfully raised fresh investment of Rs 200 crore through a partly paid rights issue of shares. The balance Rs 200 crore of the Rs 400-crore rights issue will be realised at a later date.
Time of India
24-04-2025
- Business
- Time of India
Spandana Sphoorty Financial said to be under RBI lens
The Spandana board on Wednesday appointed chief financial officer Ashish Kumar Damani as the interim chief executive of the company. Saxena will continue to assist the company for the next three months to ensure a smooth transition. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads KOLKATA: The Reserve Bank of India may have found lapses in the operations of microfinance company Spandana Sphoorty Financial , which announced an abrupt top management rejig earlier this week, two people aware of developments two events may be related, they a nearly three-week-long inspection conducted sometime during October-November last year, RBI unearthed unreported frauds from the ground and was annoyed with the top management for this lapse, they people cited said the regulator found mismatch in reported cash balances in several branches and is scrutinising the management role in it."I have resigned on personal accord to pursue opportunities outside. All cash has been accounted for," outgoing managing director Shalabh Saxena told ET. He tendered his resignation on Spandana board on Wednesday appointed chief financial officer Ashish Kumar Damani as the interim chief executive of the company. Saxena will continue to assist the company for the next three months to ensure a smooth transition."Normally, RBI completes routine inspection in 3-4 days. But the inspection team spent 19 days scrutinising the company's functioning," one of the persons cited above did not respond to ET's queries on the of the persons said the regulator recently had meetings with independent directors of the company. Responding to that, Saxena said no meeting was held by RBI exclusively with independent directors."I have been nurturing this thought of pursuing opportunities outside the company and I believe the time is now," Saxena had said in his resignation company's share price jumped 4.3% Thursday to ?318.25 on BSE a day after his resignation, even as the Sensex fell 0.4%. It is still about a third of the 52-week high ? has been under severe asset quality stress like many of its peers and reported consecutive net losses for the second and third quarters. It reported a consolidated net loss of Rs 440 crore for the third quarter and a net loss of Rs 216 crore in the preceding quarter. Its gross non-performing assets ratio rose to 5.2% as of December 2024 from 1.7% as of March the third quarter loss, the lender announced a covenant breach in respect of Rs 373 crore of non-convertible debentures and Rs 268 crore of term loans.
Business Standard
24-04-2025
- Business
- Business Standard
Spandana Sphoorty rallies as board appoints Ashish Kumar Damani as interim CEO
Spandana Sphoorty Financial rallied 4.01% to Rs 317.45 after the company's board of directors approved the appointment of Ashish Kumar Damani as interim chief executive officer (CEO), effective 23 April 2025. The appointment was recommended by the nomination and remuneration committee (NRC). Damani currently serves as Spandanas president and chief financial officer. Damani has over 23 years of experience in the microfinance industry. Before joining Spandana in March 2022, he held various roles at Bharat Financial Inclusion , including that of CFO. He played a key role in guiding the company through sectoral challenges and led a borrowing program of Rs 12,000 crore prior to Bharat Financial's merger with IndusInd Bank. Damani is an alumnus of IIM Ahmedabad (AGMP) and holds a PGDBA from Symbiosis, Pune. Meanwhile, the board announced the resignation of Managing Director and CEO Shalabh Saxena, effective immediately. Saxena, who led the microfinance firm for over three years, stepped down to pursue other career opportunities. He will continue to support the company during his notice period to ensure a smooth leadership transition. Spandana Sphoorty Financial is primarily engaged in the business of microfinance, providing small-value unsecured loans to low-income customers in semi-urban and rural areas. The company reported a consolidated net loss of Rs 440.19 crore in Q3 FY25, compared with a net profit of Rs 127.40 crore posted in Q3 FY24. Revenue from operations tanked 12.8% year on year to Rs 572.59 crore in Q3 FY24.
