You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Spandana Sphoorty Financial appoints Shalabh Saxena as new MD, CEO

Capital Market 

The NBFC announced that Shalabh Saxena has accepted the position of managing director and chief executive officer of the company.

Saxena is currently serving as the MD & CEO of Bharat Financial Inclusion, one of the leading microfinance institutions in the country.

Further, Ashish Damani has accepted the position of president and chief financial officer of the company. Damani has nearly two decades of experience at Bharat Financial Inclusion and is currently serving as its chief financial officer.

Both Saxena and Damani will join Spandana soon.

The board appointed Abanti Mitra, an independent director with Spandana since 2011, as non-executive chairperson of the board, with immediate effect. Outgoing chairman, Deepak Vaidya, will continue to serve on the board as an independent director.

"The management committee is also in the process of addressing gaps in the transition of services from the previous managing director, Padmaja Reddy. Shortly prior to her resignation, Reddy had transferred the company's IT systems to a new IT vendor and outsourced its management to that 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 environment," the company said in a statement.

Meanwhile, Spandana said its business demonstrated healthy performance in Q2 September 2021 (unaudited basis), with standalone collection efficiency for the entire quarter of 105% and 113% for the month of September, including pre-payments. Excluding these, the standalone collection efficiency was 97% for the entire quarter and 99% for the month, respectively.

For the partial month of November, till 16 November 2021, the company collected approximately Rs 400 crore (standalone basis), which includes approximately Rs 30 crore of advance collections done at the end of October related to loan installments due in November, which is in line with collection trends from previous months.

It has sufficient liquidity with cash and cash equivalents of approximately Rs 1,300 crore, and additional undrawn sanctions of over Rs 1,000 crore. It has been making all lender repayments on schedule and has already repaid Rs 154 crore as of 17 November 2021. Further, it is on track to make additional repayments of Rs 181 crore for the rest of the month.

The standalone disbursal volumes are also healthy at over Rs 1,150 crore for the quarter ended 30 September 2021, with September alone accounting for Rs 578 crore, resulting in closing assets under management (AUM) of Rs 7,034 crore (standalone basis).

The company said it has also now recommenced new branch openings and new customer acquisitions, which will be further ramped up in the coming weeks.

The company has resumed the audit of the financial results for the quarter ended 30 September 2021, following a brief transition-related hiatus. It expects to be able to announce results in the next few weeks.

Some potential concerns have been brought to the board's notice regarding certain gold loan branches of Spandana's subsidiary, Criss Financial. It is currently in the process of confirming the status of the same. The matter relates to its branches with a combined portfolio of less than 1% of Spandana's consolidated AUM, and therefore would not have a material financial impact on the company, it said.

Spandana Sphoorty Financial's net profit declined 8.45% to Rs 53.95 crore on 33.02% increase in total income to Rs 434.90 crore in Q1 June 2021 over Q1 June 2020.

Spandana Sphoorty Financial is a rural-focused non-banking financial company and a microfinance lender (NBFC-MFI) with a geographically diversified presence in India.

Shares of Spandana Sphoorty Financial were up 3% at Rs 454.75 on the BSE.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 23 2021. 10:10 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU