Spandana Sphoorty Financial , a prominent microfinance institution, has issued a postal ballot notice dated December 17, 2025, seeking shareholder approval for key leadership appointments and remuneration revisions through electronic voting.

Postal Ballot Resolutions

The company has proposed three special resolutions for member approval through remote e-voting:

Executive Compensation Structure

The postal ballot notice reveals comprehensive remuneration details for Venkatesh Krishnan's appointment as Managing Director and Chief Executive Officer:

Leadership Transition Background

The Board of Directors approved Krishnan's appointment on November 25, 2025, following the resignation of the former Managing Director and Chief Executive Officer. Krishnan brings over 34 years of financial services experience, having previously headed the microfinance division at HDFC Bank from 2018.

Voting Timeline and Process

The e-voting process is scheduled as follows:

Chairperson Remuneration Revision

The company also seeks approval for revising Abanti Mitra's annual remuneration from ₹30.00 lakh to ₹50.00 lakh, effective October 1, 2025. Mitra has served as Chairperson and Independent Director since 2021, providing strategic guidance during challenging phases including the recent leadership transition.

Regulatory Compliance

The postal ballot notice complies with Section 110 of the Companies Act, 2013, and SEBI Listing Regulations. The company has appointed Y Ravi Prasada Reddy as Scrutinizer for conducting the e-voting process in a fair and transparent manner.

Shareholders can access the complete postal ballot notice and explanatory statement on the company's website and stock exchange platforms for detailed information on the proposed resolutions.

Spandana Sphoorty Financial Limited has reported a net loss of Rs 249.00 crores for the second quarter of fiscal year 2026, despite showing signs of operational improvement. The microfinance institution, which has been working on rebuilding its portfolio, demonstrated progress in key areas while facing ongoing challenges.

Operational Highlights

The company's X-bucket collection efficiency, a crucial indicator of portfolio quality, improved to 98.7% in September from 97.9% in June. However, it slightly declined to 98.5% in October due to fewer working days and festive season impacts. This trend suggests a gradual stabilization in the company's core operations.

Disbursements saw a significant uptick, increasing to Rs 934.00 crores in Q2 from Rs 280.00 crores in Q1, indicating a revival in lending activities. The Assets Under Management (AUM) stood at Rs 4,088.00 crores at the end of the quarter.

Financial Performance

Despite operational improvements, Spandana Sphoorty's financial results reflect ongoing challenges:

The company reported a Gross NPA of 5.62% at the enterprise level and 4.97% on a standalone basis. Net NPA stood at 1.17% for the enterprise and 0.97% standalone.

Liquidity and Funding

Spandana Sphoorty maintained a strong liquidity position with Rs 1,179.00 crores in cash and bank balances, representing 21% of total assets. The company successfully completed a rights issue raising Rs 200.00 crores and secured additional debt funding of Rs 598.00 crores over two months, bolstering its capital position.

Strategic Initiatives

As part of its operational rationalization efforts, the company closed or merged 101 branches during the first half of FY26. Management expects to achieve positive Pre-Provision Operating Profit in the coming quarters and projects a 20% AUM growth with 2.5-3% credit costs for FY27.

Outlook

While Spandana Sphoorty continues to face challenges, the improved collection efficiency and increased disbursements suggest a gradual recovery. The company's focus on rebuilding its loan book under new credit rules and maintaining a strong liquidity position may contribute to its turnaround efforts in the coming quarters.

Investors and stakeholders will be watching closely to see if the company can translate these operational improvements into positive financial results in the near future.