Spandana Sphoorty seeks forbearance and a waiver from its lenders

The company suffered a loss of Rs 58.87 crore in the September quarter (Q2FY22) on a sharp rise in impairments and other provisions

Spandana Sphoorty, the troubled microfinance institution (MFI), has sought forbearance and a waiver from its lenders as regards some conditions in agreements on borrowing funds.

While it is servicing all borrowing, there has been a breach in certain covenants on account of a rise in non-performing assets (NPAs) and a change in management, the MFI said in a filing with the BSE.

There has been an increase in portfolio at risk (PaR) and NPA ratios due to higher delinquencies caused by the pandemic.

The query to the company seeking more information on which covenants it had sought forbearance and waiver from the lenders