Rating agency ICRA places Spandana Sphoorty Financial's bond under watch

CEO, CFO exit may impact operations in near term

Rating agency ICRA today placed Spandana Sphoorty Financial Ltd’s (SSFL) debentures and bank lines under watch with developing implications following sudden resignation by its chief executive Padmaja Reddy and other senior level exits.

ICRA had attributed key person risk with respect to Reddy, considering her deep involvement in the management of the day-to-day operations of the micro-finance lender.  The chief financial officer (CFO) exited in October 2021 and the chief strategy officer (CSO) exited in November 2021.

While the frequent churn in the senior management team was a concern, the recent exits, including that of the MD & CEO, is