Spandana Sphoorty Bonds

Spandana Sphoorty Financial Limited (SSFL) is an RBI-registered NBFC, incorporated in 2003. SSFL has issued senior, secured, redeemable Non-Convertible Debentures (NCDs) on a private placement basis. The bond offers 13.75% p.a. returns (YTM) with a minimum investment of Rs 10,000. It offers monthly interest payments with the coupon rate (fixed) of 11.25% per annum, payable monthly. The credit rating of Spandana Sphoorty Bonds is BBB+ (Stable) by CARE Ratings and  BBB+ (Negative) by ICRA Analytics Limited. 

You can buy Spandana Sphoorty Bonds through the Paisabazaar app by following the steps below:

Step 1: Download and log in to the Paisabazaar App

Step 2: Tap on the ‘Bond’ section under ‘Investment Products’

Step 3: Verify your email address and complete KYC Verification.

Step 4: Fill in the necessary details such as personal information, bank details, and lastly provide an e-signature.

Step 5: Link your demat account.

Step 6: Start investing in Spandana Sphoorty Bonds and earn returns of 13% p.a.

• Spandana Sphoorty Bonds are senior, secured, non-convertible debentures with a minimum security cover of 1.10 times the aggregate of the outstanding amounts. 
• Investors seeking higher yields can earn higher returns (YTM) of up to 13% p.a. by investing in Spandana Sphoorty Bonds.
• It is listed on the stock exchange, i.e, investors have the liquidity to sell in the market before the maturity date.
• The bond offers a monthly interest payout option, offering investors predictable and consistent income.
• This bond falls under an investment-grade credit rating (AAA-BBB). BBB credit rating indicates a moderate credit risk and a moderate degree of safety.

Rating by CARE Ratings Limited

CareEdge (CARE Ratings) assigned a credit rating of BBB+ Stable to Spandana Sphoorty Bonds on 18 December 2025. The BBB rating indicates a ‘moderate degree of safety’ for timely repayment of financial obligations and carries moderate credit risk. CARE considers the capitalisation profile, liquidity profile, and its subsidiary companies (Caspian Financial Services Limited and Criss Financial Limited) in its analytical approach, etc., for assigning a credit rating. 

According to the CARE Report, the capitalisation profile of the company states a total capital-to-risk-weighted assets ratio (CRAR) of 36.5% on 30 September, 2025. It also reported an adequate liquidity profile with on-balance sheet liquidity of Rs 1,179 crore on 30 September, 2025. However, the continued weakening of the company’s asset quality and higher write-offs have adversely impacted its earnings profile.

The ‘Stable’ outlook reflects CARE Ratings’ expectation that the company can gradually scale up its operations with improvement in its earnings profile while maintaining healthy on-book liquidity and adequate capitalisation levels.

Ratings by ICRA Limited 

ICRA Analytics Limited assigned a credit rating of BBB+(Negative) through its letter dated April, 2026. The ‘Negative’ outlook is due to the decline in the SSFL’s scale of operations over the last 2 years, with its consolidated AUM decreasing to Rs. 3,948 crore as of December 2025 from Rs. 11,973 crore as of March 2024. The credit costs increased to 12.1% in 9M FY2026 and 16.5% in FY2025 from 1.5% in FY2024 due to technical write-offs. 

The capital adequacy ratio stood at 30.4% as of December 2025 (36.3% as of March 2025) and diversified geographical presence is a credit strengths of Spandana Sphoorty.

• Spandana Sphoorty is a publicly listed NBFC on NSE and BSE with a market capitalization of Rs 1,550+ crore.
• These bonds fall under the senior secured category, i.e., investors have a right to claim on the SSFL’s underlying assets, providing a layer of security.
• SSFL is backed by strong investors such as Goldman Sachs and Kedaara Capital and maintains a strong capital adequacy ratio.

Investors can redeem Spandana Sphoorty Bonds through the stock exchange or by contacting their broker. 

Spandana Sphoorty Financial Limited is an RBI-registered NBFC and was classified as an NBFC-MFI effective April 13, 2015. The company has two subsidiaries, Criss Financial Limited (CFL) and Caspian Financial Services Limited (CFSL).

SSFL deals with the loan against property (LAP) lending model and microfinance loans business in a joint liability group (JLG) in India. The company also offers micro loans to women from low-income households for income-generating activities such as cottage industries, handloom, etc. As on September 30, 2025, the company operates in 19 states and 1 union territory with consolidated AUM of Rs 4,088 crore.

Key Financial Indicators - Spandana Sphoorty Financial Limited (standalone) 

All ratios as per ICRA calculations; Amount in Rs. crore

Financial Covenants (for the period ended 31 December 2025)

Brief Details of the Management of the Company

Currently, Spandana Sphoorty Financial Limited has a 10-member board of directors, including 5 independent directors.

Executive & Senior Leadership of the Company

• Venkatesh Krishnan: Managing Director & Chief Executive Officer (MD & CEO)
• Avinash Yadav: Chief Information Officer (CIO)
• Ashish Damani: President and Chief Financial Officer (CFO)
• Ganesh KV: Chief Operating Officer (COO)
• G. Parthasarathy: Chief Risk Officer (CRO)
• Prashant Rai: Chief Public Officer (CPO)
• Sunand Sahu: Chief Internal Auditor
• Vijay Mohan Reddy: Chief Compliance Officer (CCO)
• Vinay Tripathi: Company Secretary

Risk Factors

General Risks

• Credit Risk: The bond is rated BBB by CARE and ICRA. The credit rating agency may downgrade the rating if the financial health of the issuer deteriorates.
• Liquidity Risk: NCDs may be very illiquid and therefore investors may have to hold their bonds until redemption to realise any value.
• Interest Rate Risk: The inverse relationship between interest rates and the price of the bond, accompanied by inflation and/or a growing economy, can have a negative effect on the pricing of the bond.

Specific Risks

• The financial condition and operations of the company can be affected if the company is unable to control NPAs or if loan loss reserves are insufficient to cover future loan losses. As on 30 June 2025, the Gross Non-Performing Asset (GNPA) was Rs 188.38 crores on a gross portfolio of Rs 3856.93 crores (excluding managed portfolio of Rs 388.45 crore). 
• The business operates through a large number of semi-urban and rural branches.
• AUM has declined from  Rs 11,973 crore (FY 2024) to Rs 3,948 crore (December 2025) due to MFI sector stress, write-offs and cautious disbursements.