Lenders seek urgent talks between Reddy and Spandana Sphoorty

Reddy quit abruptly in November 2021, following differences with the private equity investor on the future of the MFI, and on selling it

Concerned over their money, lenders to Spandana Sphoorty urged the microfinance institution (MFI) and Padmaja Reddy to sort out their differences and let the company get on with business.

A senior executive with a financial institution said a few lenders with large exposures have had discussions with Reddy and those involved in managing the MFI. They conveyed that while business is viable, the strife could hit growth prospects.

Given the risks in the MFI sector, lenders would look to take further exposure only after a settlement is reached, said an executive with a small bank. Spandana Sphoorty, which is backed by private