Spandana Sphoorty today morning opened 2% higher at Rs.835 and rose further to Rs.855.40, up almost 4.5%. This is not too far from its 52-week high of Rs.863.

The stock price rose on unconfirmed news that YES Bank and PE firm, Kedaara Capital are looking at buying a stake in the company. None of the companies have confirmed or denied the news but grapevine has it that YES Bank is in a state of advanced talks with the company.

The company’s earnings for Q1FY24 were very good with total income rising 104% (YoY) to Rs.527 crore while NII went up 102% to Rs.328 crore. NIM rose 38 bps (QoQ) and up 434 bps (YoY) at 14.2%.

PAT for the quarter came in at Rs.119 crore, up 13% sequentially and YoY, it’s a turnaround from a loss of Rs.220 crore.

The company has maintained a provision coverage of 70.1% on the consolidated book in the current quarter, and NNPA has reduced to 0.49% and GNPA improved to 1.63%. The number for the previous quarter were 2.07% and 0.64%.

It’s yield on the portfolio has improved to 24% from normalized yield of 22.8% in quarter 4 and 16.4% in Q1 of FY '23.