MFI Spandana Sphoorty seeks forbearance and waiver from lenders

Spandana Sphoorty, the troubled microfinance institution (MFI), has sought forbearance and a waiver from its lenders as regards some conditions in agreements on borrowing funds. While it is servicing all borrowing, there has been a breach in certain covenants on account of a rise in non-performing assets (NPAs) and a change in management. There has been an increase in portfolio at risk (PaR) and NPA ratios due to higher delinquencies caused by the pandemic.