The consolidated loan assets of Spandana Spoorthy Financial Ltd fell around 48 percent year-on-year basis as at the end of financial year 2024-25, and reported a net loss for the second consecutive quarter of Rs 434.30 crore in March FY25 quarter. For the full year FY25, the lender posted highest ever losses of Rs 1,035.10 crore. This is the first full year losses post its listing in 2019. Consolidated loan assets of the company fell to Rs 5,708.40 crore at the end of FY25, as compared to Rs 11,014.30 crore at end of FY24.
In fourth quarter of the financial year 2024-25, the company's loss has widened to Rs 434.40 crore, as compared to a net profit of Rs 128.64 crore in a year ago period. Once again, in Q4, the auditors drew reference to the company’s ability to remain a going concern.
The company said that unprecedented challenges due to a combination of external and structural headwinds such as climatic disruptions, the weakening of the Joint Liability Group (JLG) lending model, deterioration in borrower discipline, elevated levels of borrower indebtedness, and external socio-political influences affecting customer behavior, have impacted the company.
The Holding Company remains focused on strengthening on-ground recovery initiatives and is confident of driving improved collection performance going forward. Any recoveries from these technically written-off assets will be recognized in the statement of profit and loss in the period in which they are realized, company said.
The company said that unprecedented challenges due to a combination of external and structural headwinds such as climatic disruptions, the weakening of the Joint Liability Group (JLG) lending model, deterioration in borrower discipline, elevated levels of borrower indebtedness, and external socio-political influences affecting customer behavior, have impacted the company.
Operational stress was further intensified by increased field-level attrition, contributing to higher delinquencies, gross slippages, elevated credit costs, and a resulting in reported loss for the quarter and year ended March 31, 2025, company added.
The company said it adopted cautious approach during the quarter due to stress and challenging conditions, which led to fall in disbursements by 48 percent on-year to Rs 5,605 crore in FY25, from Rs 10,688 crore in FY24.
Industry wide challenges has also impacted the asset quality with gross non-performing assets (NPA) ratio rising to 5.63 percent as on March 31, 2025, as compared to 4.85 percent in a quarter ago period.
Net NPA ratio rose to 1.19 percent in Q4FY25, as compared to 0.98 percent in a quarter ago period.
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