HDFC Bank’s K Venkatesh, who currently heads the microfinance business at India’s largest private lender, is set to join Spandana Sphoorty Financial Ltd as its Managing Director and Chief Executive Officer in the coming weeks.
This move is expected to end the leadership uncertainty at the microfinance institution that began in April 2025, following the abrupt resignation of Shalabh Saxena, the then MD & CEO. Saxena had stepped down with immediate effect to pursue opportunities outside the company.
Following his exit, Ashish Damani, the then Chief Financial Officer, was elevated as interim CEO.
Second Major Leadership Change Since 2021
The likely appointment of Venkatesh marks the second major leadership transition at Spandana Sphoorty since founder Padmaja Reddy resigned in November 2021.
After Reddy’s departure, Saxena and Damani—both former executives of Bharat Financial Inclusion Ltd, a unit of IndusInd Bank—were appointed as CEO and CFO, respectively.
Despite these transitions, the company has continued to face management-level challenges, leading to prolonged instability in its top leadership.
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Financial and Operational Pressures
Spandana Sphoorty, which is backed by Kedaara Capital, has been under scrutiny due to rising asset quality concerns. In the March FY25 quarter, the lender reported a gross non-performing asset (GNPA) ratio of 5.63%.
Additionally, in May 2025, reports indicated that a forensic audit may be underway to assess the company’s cash position and financial controls.
No Official Confirmation Yet
Emails sent to Spandana Sphoorty seeking confirmation on Venkatesh’s appointment remained unanswered at the time of publishing. Similarly, Venkatesh could not be immediately reached for comment.
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