The lender had earned a consolidated net profit of Rs 56 crore in the year ago period. Thereafter, it reported losses in every quarter.
Its consolidated income fell 59% year-on-year at Rs 304 crore against Rs 734 crore. Provisions to cover bad loans were higher at Rs 422 crore as compared with Rs 209 crore.
“The losses for the quarter ended June 30, 2025 were mainly due to significant
impairment losses (including technical write offs) arising from credit deterioration of loans to customers,” the company said in a stock exchange filing.
It wrote off loans to the tune of Rs 581 crore in the June quarter, contributing to the elevated credit costs.
“This will be improved going forward by strengthening on-ground recovery. Accordingly, the Company expects to generate sufficient taxable profits to fully utilize the losses,” the company said in a joint statement by chairperson Abanti Mitra and interim chief executive officer Ashish Kumar Damani.
The consolidated loss before tax for the June quarter was Rs 481 crore.
Spandana recognized a deferred tax asset of Rs 544 crore to the extent it is considered recoverable, based on probable future taxable income supported by revised approved business plans and budgets.
The lender’s standalone loan book contracted to Rs 3877 crore at the end of June from Rs 5555 crore three months prior to that. Gross non-performing assets ratio was at 4.88% at the end of June as compared with 4.85% three months back. Net NPA remained at 0.96%.
The company’s consolidated assets under management stood lower at Rs 4958 crore, as compared with Rs 11723 crore a year back. The GNPA for the consolidated balance sheet was 5.49% against 2.60% a year back.
Spandana was non-compliant with certain covenants related to portfolio at risk, gross NPA, tangible net worth, and quarterly profitability as of and for the quarter ended June 30. It has obtained waivers in respect of such non-compliant covenants from few of the lenders.
“The company has been in constant communication with its lenders and is confident that no demand for immediate repayment of borrowed funds will be made due to non-compliance with the covenants,” it said.
The company management is of the view that it would be able to realise all its assets and discharge all its liabilities in the normal course of business. “There are no material uncertainties on the company’s ability to continue as a going concern,” it said.
It has a strong capital position, with tier I capital of ₹1,245.53 crores and a capital to risk-weighted assets ratio of 37%. It has successfully raised fresh investment of Rs 200 crore through a partly paid rights issue of shares. The balance Rs 200 crore of the Rs 400-crore rights issue will be realised at a later date.
