Spandana agrees to settle amicably with former Pad Padai Gangireddy

Spandana agrees to settle amicably with former Pad Padai Gangireddy

A conflict between Spandana Sphoorty Financial Limited’s promoter and former MD Padmaja Gangireddy has been resolved, and the two have promised to settle all disagreements peacefully.

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.

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.

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.

”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.

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.

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.

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