Spandana Sphoorty Financial Limited is a rural-focused non-banking financial company (NBFC) in India, specializing in microfinance lending. The company primarily offers income-generating loans under the joint liability group (JLG) model to women from low-income households in rural areas. Additionally, Spandana provides products such as gold loans, interim loans, and loans against property. The organization's mission centers on empowering women through inclusive financial solutions and community development.
The leadership team at SSPL comprises experienced professionals:
Serving as the Managing Director and Chief Executive Officer, Mr. Saxena brings over 28 years of experience in consumer banking and the life insurance sector. He has held significant roles at organizations such as Bharat Financial Inclusion Limited, HSBC Life Insurance, ING Life Insurance, and Standard Chartered Bank.
As the President and Chief Financial Officer, Mr. Damani has more than 23 years of experience in the microfinance industry. Prior to joining Spandana, he was the CFO at Bharat Financial Inclusion Ltd, where he played a pivotal role in navigating the company through various industry challenges.
n the first half of the fiscal year 2025 (H1 FY2025), Spandana Sphoorty experienced a significant increase in credit costs, which rose to 14.2% (annualized) from 1.5% in FY2024. This escalation was primarily due to a deterioration in asset quality, leading to a net loss of 6.2% (on average managed assets) during this period, compared to a profit of 4.1% in FY2024. The company's profitability was further impacted by elevated operating expenses and credit costs amid ongoing challenges in the microfinance industry. Consequently, Spandana reported losses of ₹600.86 crore in 9M FY2025, translating into a return on average total assets (ROTA) of -6.98% (annualized) and a return on average net worth (RoNW) of -25.74% (annualized), compared to a PAT of ₹500.72 crore, ROTA of 4.47%, and RoNW of 15.72% in FY2024.
As of February 12, 2025, India Ratings and Research downgraded Spandana Sphoorty's credit rating to 'IND A' with a Negative outlook, citing weakened profitability due to increased credit costs and operating expenses. Similarly, in December 2024, ICRA reaffirmed the company's rating at '[ICRA]A+' but revised the outlook to Negative from Stable, highlighting concerns over asset quality and elevated credit costs.
