Spandana agrees to resolve disputes with ex-MD Padmaja Gangireddy amicably

Microfinance company Spandana Sphoorty Financial Limited has resolved issues with its promoter and erstwhile MD Padmaja Gangireddy and they have agreed to settle all disputes amicably.

The board of directors of the company and its subsidiaries -- Criss Financial Limited and Caspian Financial Services Limited -- on Tuesday approved the settlement agreement, the company said in a regulatory filing on Wednesday.

A settlement agreement has been entered into between the company and the erstwhile MD of the company.

Reddy had resigned from her position as the Managing Director of the company on November 2, 2021.

Following this, certain disputes arose between her and the board of directors of the company.

"We...inform you that the company and Reddy have resolved their differences and agreed to part ways on amicable terms," according to a joint statement.

It said while Reddy is no longer serving as the MD of the company, she continues to be a substantial shareholder and member of the company's board.

"Needless to state that the company and its board reiterate that they are committed to growing the company's business with a view to take it to greater heights," according to the statement.

Reddy's resignation and other factors such as increase in the portfolio at risk (PAR) and non-performing assets (NPA) ratios due to higher delinquencies caused by the COVID-19 pandemic had resulted in the breach of some of the covenants related to borrowings.