ICICI Securities: Spandana Sphoorty Q2 Review - Capital Sufficiency, Adequate Contingency Buffer To Help Tackle Current Cycle
A customer counts Indian rupee banknotes. (Photographer Dhiraj Singh/Bloomberg)

ICICI Securities: Spandana Sphoorty Q2 Review - Capital Sufficiency, Adequate Contingency Buffer To Help Tackle Current Cycle

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Spandana Sphoorty Q2FY21 Result Update.pdf

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