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Resignation of MD & CEO; appointment of Interim CEO

The company appointed its CFO Mr. Ashish Damani as the interim CEO

* Spandana Sphoorty (SPANDANA), through an exchange filing, announced that Mr. Shalabh Saxena, Managing Director and Chief Executive Officer, has tendered his resignation, effective 23rd Apr’25, to pursue other career opportunities. However, Mr. Saxena will continue to support the company during his notice period to ensure a seamless transition.

* The Board of the company, at its meeting, approved the appointment of Mr. Ashish Damani (currently serving as President and CFO), as the Interim CEO, due to his extensive MFI background.

SPANDANA hosted a conference call to address queries on the given development; following are the key takeaways:

* Mr. Saxena shared that he has been contemplating moving on from SPANDANA for the past 6-7 months and has been in active discussion with stakeholders for the past 6-7 months and that this was not a sudden decision. He chose to step down now given that the market and the MFI industry has started stabilizing and now that the fiscal year has now concluded. During his notice period, he will oversee the handover process to ensure a smooth transition.

* The appointment of the new CEO is a work in progress, and the Board will make a decision in due course.

* The company plans to raise INR5-7.5b as 'confidence capital', although not due to balance sheet stress, since it has a healthy capital adequacy of 36- 37%. The format of the equity capital raise is still being evaluated by the company.

MFI industry

* The microfinance industry, after a challenging year, is now stabilizing. It is evolving toward more data-driven and customized lending approaches, while continuing to rely on the JLG model as its foundation. Collection efficiencies are improving, with Mar’25 performing strongly and a positive trend expected to continue.

* The implementation of guardrails 1.0 and 2.0 will have a positive impact on the collection efficiencies. The three-lender cap and other criteria will help improve asset quality, with customers returning to center meetings with an improved attitude. The industry is expected to recover and return to a healthy state within the next 1-2 quarters.

* The MFI industry’s growth is expected to pick up in 2HFY26 and stabilize at 15-20% loan growth (lower than the previous 30-40% growth level).

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