Spandana Sphoorty CEO Saxena resigns; CFO Damani named interim chief

The stock of the company closed six per cent lower at Rs 305.2 per share on BSE

Shalabh Saxena, Managing Director & Chief Executive Officer (MD & CEO), Spandana Sphoorty Financial Limited (SSFL) has resigned with immediate effect, as the loss-making non-banking finance company working as a micro finance institution battled the ongoing microfinance stress. 

Ashish Kumar Damani, current President & Chief Financial Officer (CFO), will be the Interim CEO of the company with effect from April 23, 2025. The appointment of Damani -- who was working as CFO since March 19, 2022 -- was confirmed by the company board.

 

“The company remains committed to a seamless transition in its leadership,” SSFL said in filing with BSE.

 

The stock of the company closed six per cent lower at ₹305.2 per share on BSE.

 

Prior to joining Spandana Sphoorty, Damani had worked in various capacities at Bharat Financial Inclusion Ltd, an entity that merged with IndusInd bank.

 

Saxena, in his resignation letter said he has been with Spandana for over three years now. Of late, he has been nurturing thoughts of pursuing opportunities outside the company.

 

“I would hence want to step down from my current position with the assurance of a smooth transition over my notice period,” he added.

 

Early this month, CARE Ratings affirmed SSFL’s long-term bank rating of “A”. 

 

The ratings for SSFL factored in a comfortable capitalisation profile with a capital adequacy ratio (CAR) of 36 per cent and gearing of 2.5 times as on December 31, 2024.

 

Further, SSFL has sought approval from its board and shareholders to raise confidence capital of up to ₹750 crore.

 

However, the company is yet to finalise the details and timeline. 

 

The rating is, however, constrained by a significant weakening of its earnings profile as SSFL reported a net loss of ₹601 crore during 9M FY2025, CARE said.