ICICI Securities: Spandana Sphoorty Q2 Review - Capital Sufficiency, Adequate Contingency Buffer To Help Tackle Current Cycle
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ICICI Securities Report
Spandana Sphoorty Financial Ltd. in Q2 FY21 continued its proactive approach in strengthening its balance sheet by building additional Covid-19 related provisions at Rs 1.14 billion (approximately 155 basis points of asset under management), taking cumulative contingency buffer to approximately 450 basis points (highest in micro finance institution space).
Collection efficiency surprises positively, but company continued to strengthen balance sheet; total provision cushion now at ~450 basis points.
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