Spandana Sphoorty Financial Limited has informed the Exchange about the Management Committee of the Board of Directors of the Company vide its resolution dated December 29, 2025, has approved the transfer of stressed loan portfolio including written off loans of Rs.493.55 crore outstanding as on October 31, 2025 to an asset reconstruction company pursuant to Swiss Challenge Method for a consideration of Rs.34.55 crore.
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Spandana Sphoorty Financial has approved the transfer of its stressed loan portfolio, including written-off loans totalling Rs.493.55 crore (outstanding as on October 31, 2025), to an Asset Reconstruction Company (ARC). The transfer will happen via the Swiss Challenge Method for a consideration of Rs.34.55 crore. The decision was approved by the company's Management Committee on December 29, 2025. The recovery value works out to roughly 7% of the outstanding amount, which is typical for deeply stressed or written-off assets.
This is a balance sheet cleanup move — offloading toxic assets to clean up the lending book. While the company takes a Rs.459 crore haircut (Rs.493.55 cr minus Rs.34.55 cr), it frees up capital and management bandwidth. Short-term the stock may react negatively due to the steep loss recognition, but long-term it signals a healthier, cleaner portfolio going forward.