The lender had earned a consolidated net profit of RS 56 Crore in the period of the year ago. Then it reported losses in every quarter.
The consolidated income fell by 59% at RS 304 Crore against RS 734 Crore on an annual basis. Provisions to cover poor loans were higher in RS 422 Crore compared to RS 209 Crore.
“The losses for the quarter ending on June 30, 2025 were mainly due to considerable
Reduction losses (including technical depreciation) that arise from credit excretion of loans to customers, “the company said in a stock market application.
It wrote loans to the melody of RS 581 Crore in the quarter of June, which contributed to the increased credit costs.
“This will be improved in the future by strengthening recovery on the ground. Accordingly, the company expects to generate sufficient taxable profits to fully use the losses,” said the company in a joint statement by chairman Abanti Mitra and Interim Chief Executive Officer Ashish Kumar Damani.
The consolidated loss for tax for the quarter of June was RS 481 Crore.
Spandana acknowledged a delayed taxactive of RS 544 Crore insofar as it is considered repairable, based on likely future taxable income supported by revised approved business plans and budgets.
At the end of June, RS 3877 CRORE from RS 5555 CRORE three months earlier, the standing credit book of the lender closed off at the end of June. The gross non-performing asset ratio was 4.88% at the end of June compared to 4.85% three months ago. NET NPA remained 0.96%.
The consolidated assets of the company was lower on RS 4958 Crore, compared to RS 11723 Crore a year back. The GNPA for the consolidated balance was 5.49% against 2.60% per year.
Spandana was non-compliant with certain covenants with regard to portfolio, gross NPA, tangible net value and quarterly profit per and for the quarter ending on 30 June. It has obtained distance statements with regard to such non-compliant covenants of few of the lenders.
“The company is constantly in communication with its lenders and is convinced that no demand for immediate repayment of borrowed funds will be made due to non-compliance with the covenants,” said it.
Business management is of the opinion that it would be able to realize all its assets and to discharge all its obligations in the normal business course. “There are no material uncertainties about the ability of the company to continue as a common care,” said it.
It has a strong capital position, with Tier I capital of £ 1,245.53 crores and a capital / risk-weighted assets ratio of 37%. It has successfully increased new investments of RS 200 Crore through a partially paid rights of shares. The RS 200 Crore balance of the RS 400-Crore rights issue will be realized at a later date.
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