Spandana Sphoorty Financial Limited — Updates, 23-01-2025: Press Release

Spandana Sphoorty Financial Limited reported a challenging quarter for Q3FY25, with a 14% decline in Assets Under Management (AUM) to ₹8,936 Cr, influenced by a deliberate slowdown in disbursement. Disbursement dropped significantly by 43% YoY to ₹1,443 Cr as the company adopted stringent criteria, focusing on existing customers. Income also fell, decreasing by 13% YoY to ₹573 Cr, while Net Interest Income declined by 14% to ₹265 Cr. The company recorded a net loss of ₹440 Cr, a stark contrast to the ₹127 Cr profit in the previous year.

Asset quality showed strain, with Gross Non-Performing Assets (GNPA) at 4.85% and Net NPA (NNPA) at 0.98%. The company provided ₹666 Cr towards impairment costs. Despite the tough environment, Spandana remains well-capitalized with a Capital to Risk-Weighted Assets Ratio (CRAR) of 35.7%. Management aims to enhance operational processes and technology in anticipation of a recovery, signaling a need for investors to watch closely for potential improvements moving forward.