Spandana Sphoorty probing issues at gold branches of subsidiary: Committee

Company appoints Shalabh Saxena as new MD&CEO, says it is probing IT management contract given by former executive.

A committee managing Spandana Sphoorty after founder and former CEO Padmaja Reddy quit the microfinance lender is reviewing the transfer of IT operations to a vendor and the functioning of some gold loan branches of a subsidiary called Criss Financial Limited.

Reddy, before leaving, outsourced the company’s IT systems management to a new vendor. “There has been no meaningful impact on the day-to-day business operations of the company from this. However, to ensure a smooth transition and business continuity, Spandana is taking steps to engage with this new vendor appropriately and has also made good progress on creating a parallel IT