The said stressed loan portfolio includes a written off loans pool, the company said in a regulatory filing to stock exchanges. The sale has been done on an open bid method, on security receipts consideration basis.
The asset reconstruction company has subscribed to 91.50% of security receipts amounting to Rs 15.32 crore while Spandana has subscribed to 8.50% of security receipts for Rs 1.42 crore.
Spandana’s share price closed Monday at Rs 592.35 on BSE, down Rs 11.20 or 1.86%. The company announced the sale after market hours.
The lender’s asset quality deteriorated during the April to June period with the gross non-performing assets ratio rising 97 basis points to 2.6% as of June-end from 1.63% a year earlier.
The company had attributed the worsening of asset quality to two-month long general elections, severe heat wave across the country and higher employee attrition in select geographies, which together hampered its business as well as loan recovery process, especially in Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra and Odisha. The company also said that the new-to-credit customers were more prone to defaults.Its net profit for the June quarter stood at Rs 56 crore, 53% year-on-year lower as compared to the year-ago period number on account of higher delinquencies.
Its assets under management rose 32% y-o-y to Rs 11,723 crore at the end of June.
