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Spandana Sphoorty MD Quits After RBI Inspection Reports

25 April 20251 min read
BANKING & FINANCESpandana SphoortyMD Quits After RBIInspection Reports25 April 2025safalsetu.com

Why in the news

Spandana Sphoorty Financial’s MD resigned suddenly; unconfirmed reports link it to RBI’s inspection. RBI issued no statement.

Key facts

  • Inspection in October-November 2024 reportedly ran 19 days (routine audits take 3-4), allegedly finding unreported frauds and branch cash discrepancies; RBI is said to be checking management accountability.
  • Shalabh Saxena cited personal reasons, denies wrongdoing and says all cash is accounted for.
  • Ashish Kumar Damani (CFO) is interim CEO; a 3-month handover is planned.

Financial stress

  • Losses: ₹216 crore (Q2 FY25), ₹440 crore (Q3 FY25).
  • Gross NPA: 1.7% (March 2024) to 5.2% (December 2024).
  • Covenant breaches: ₹373 crore in NCDs, ₹268 crore in term loans.

Test yourself

1. Who resigned as Managing Director of Spandana Sphoorty Financial amid reports of an RBI inspection?

Shalabh Saxena resigned; the CFO was named interim CEO.

2. Who was appointed interim CEO of Spandana Sphoorty Financial?

CFO Ashish Kumar Damani took over as interim CEO.

3. Spandana Sphoorty's gross NPA ratio in December 2024 was:

It rose to 5.2% from 1.7% in March 2024.

This topic is part of Daily Current Affairs 25 April 2025 (24 topics).

All topics of the dayDay quizApril 2025

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