Conference Call with Suryoday Small Finance Bank Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Suryoday Small Finance Bank announced Q1FY26 results Total income decreased by 2.1% YoY from Rs 363.4 crore to Rs 355.8 crore. Net interest income (NII) decreased by 15.7% YoY from Rs 293.2 crore to Rs 247.1 crore. Pre-provision operating profit (PPOP) decreased by 24.5% YoY from Rs 144.3 crore to Rs 108.9 crore. Cost of Funds stood at 7.9% in Q1FY26 as compared to 7.6% in Q1FY25. Cost to income stood at 69.4% in Q1FY26 as compared to 60.3% in Q1FY25. Profit After Tax (PAT) stood at Rs 35.3 crore in Q1FY26 as against Rs 70.1 crore in Q1FY25 Gross Advances stood at Rs 10,846 crore as on June’25 as compared to Rs 9,037 crore as on June’24, an increase of 20.0% YoY. Disbursementsstood at Rs 2,261 crore in Q1FY26 as compared to Rs 1,740 crore in Q1FY25, increase of 30% YoY. Deposits stood at Rs 11,312 crore as on June’25 as compared to Rs 8,137 crore as on June’24, an increase of 39.0% YoY. Current bucket Collection Efficiency stood at 98.3%. Collection Efficiency (1 EMI adjusted) stood at 86.4% in Q1FY26 as compared to 94.8% in Q1FY25, primarily because of Inclusive Finance portfolio. Baskar Babu Ramachandran, MD & CEO, Suryoday Small Finance Bank, said: The Bank started quarter Q1FY26 on a positive note in terms of growth in gross advances and deposits with gross advances, as on June 30,2025, at Rs 10,846 crore and deposits crossing Rs 11,000 crore and stood at Rs 11,312 crore. This growth underscores the bank’s continued progress in expanding its balance sheet while maintaining focus on portfolio quality. The non-IF (non-Inclusive Finance) book has now crossed 52% of total advances, marking a structural shift in the portfolio mix. This shift is primarily led by strong growth in the retail secured asset franchise, especially in the mortgages and wheels segments, both of which registered substantial traction during the quarter. While the external operating environment in the microfinance sector remains volatile, the Bank has proactively managed credit risk. As of June 2025, Gross NPA stood at 8.5%, with GNPA at Rs 918 crore and NNPA at Rs 593 crore. The expected CGFMU claim receivable is ~ Rs 584 crore. Considering the CGFMU coverage ~ 100% of NNPA is fully covered. Further, the Bank has received Rs 55.67 crore in June 2025, towards its second interim claim under the CGFMU Scheme (Base Year 2022–23) from the National Credit Guarantee Trustee Company (NCGTC). Also, the Bank had proactively implemented MFIN guardrails 2.0 in November 2024 itself, well ahead of the stipulated timeline of April 2025. The portfolio sourced post November 2024 is better placed both on asset quality front and collection efficiency front. On the liability side, deposits grew by 39% YoY, led by sustained momentum in the retail franchise and deepening of digital distribution channels. The CASA ratio stood at 17.7%, which is granular and retail-focused, CASA in value grew by 39.5% YoY. The microfinance sector’s stress has continued to weigh on the Net Interest Income (NII) and credit costs, thereby impacting profitability for the quarter. However, with improved collection efficiency in Inclusive Finance and the underlying strength of the Bank’s diversified portfolio-especially the secured retail and MSME segments-positions it well for improved performance going forward. The Bank is seeing early traction in MSME lending, a segment that is expected to contribute meaningfully over the medium term. This, along with continued expansion in mortgages and wheels, is expected to further increase the share of secured lending in the overall portfolio. Looking ahead, the Bank remains confident in its strategy of continuing focus on individual loans (Vikas Loan) in Inclusive Finance, diversifying the asset mix, strengthening the deposit franchise, and leveraging digital platforms. The investments made in credit protection mechanisms, customer acquisition through digital platforms, and focused execution in priority segments are expected to support consistent and profitable growth through FY26 and beyond. Result PDF
Microfinance Institutions company Suryoday Small Finance Bank announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Total income decreased by 9.2% YoY from Rs 335.5 crore to Rs 304.8 crore. Net interest income (NII) decreased by 9.6% YoY from Rs 270.8 crore to Rs 244.7 crore. Pre-provision operating profit (PPOP) decreased by 63.7% YoY from Rs 128.3 crore to Rs 46.6 crore. Cost of Funds stood at 8.1% in Q4FY25 as compared to 7.4% in Q4FY24. Cost to income stood at 84.7% in Q4FY25 as compared to 61.7% in Q4FY24. Profit After Tax (PAT) stood at Rs -33.8 crore in Q4FY25 as against Rs 60.8 crore in Q4FY24. FY25 Financial Highlights: Total income increased by 12.0% YoY from Rs 1,182 crore to Rs 1,323 crore. Net interest income (NII) increased by 15.0% YoY from Rs 962 crore to Rs 1,106 crore. Pre-provision operating profit (PPOP) decreased by 14.3% YoY from Rs 454 crore to Rs 389 crore. Cost of Funds stood at 7.8% in FY25 as compared to 7.3% in FY24. Cost to income stood at 70.6% in FY25 as compared to 61.6% in FY24. Profit After Tax (PAT) decreased by 46.8% YoY from Rs 216 crore to Rs 115 crore. Gross NPA stood at 7.2% as on March’25, compared to 2.8% as on March’24. Net NPA stood at 4.6% as on March’25, compared to 0.8% in March’24. GNPA - Rs 734 crore, NNPA - Rs 457 crore, against which Rs 460 crore is receivable under CGMFU scheme. Healthy capital position with a CRAR at 25.8%; Tier I capital of 24.5% and Tier II capital of 1.4%. Baskar Babu Ramachandran, MD & CEO, Suryoday Small Finance Bank, said: The bank has achieved the milestone of advances as well as deposits crossing Rs 10,000 crore with gross advances at Rs 10,251 crore and deposits at Rs 10,580 crore. Non-IF book now constitutes over 50% of the total advances. In respect of IF book, the bank continues to cover the entire eligible portfolio under the CGFMU scheme. The external scenario in the microfinance sector has had an impact on the bank’s performance during FY25 with GNPA increasing from 2.8% in March’24 to 7.2% in March’25. Of the gross NPA of Rs 734 crore bank is carrying a provision of Rs 276.8 crore including floating provision. The unprovided portion of GNPA stands at Rs 457 crore against which expected CGFMU receivable is Rs 460 crore. The retail asset franchise, particularly the mortgages and wheels business, have shown substantial growth in FY25, thereby tilting in favor of the non-IF portfolio as a proportion to the total advances now crossing 50%. On the deposit front, there has been 36% growth from Rs 7,777 crore to Rs 10,580 crore, primarily driven by the retail franchise with CASA ratio of 20.9% and the consistent acquisition of deposits through the digital channel. The slippages in the IF portfolio primarily due to the overall microfinance market scenario has impacted the Net Interest Income and the credit costs, thereby impacting the profitability of the bank for the quarter. The bank continues to diversify its portfolio which is visible in the growth in the mortgages and wheels segment portfolio. In addition, the bank has started focusing on the MSME segment and expects reasonable traction in this segment in the near future. Overall, for the bank, FY25 has had its share of challenges which is completely mitigated by CGFMU cover and also its share of opportunities which is focused growth in the secured assets business and deposit franchise. The various initiatives driven by the bank over the past few years such as investment in credit guarantee cover, focus on digital product offerings both on the deposits side as well as the advances front and the targeted focus on MSME business are expected to drive the bank into FY26 and forward. Result PDF
Suryoday Small Finance Bank announced Q3FY25 results Q3FY25 Financial Highlights: Net interest income (NII) increased by 9.2% YoY from Rs 245.7 crore to Rs 268.3 crore. Total income increased by 3.4% YoY from Rs 297.6 crore to Rs 307.8 crore. Pre-provision operating profit (PPOP) decreased by 37.5% Y-o-Y from Rs 114.2 crore to Rs 71.4 crore, mainly due to reduction in paying book. Cost of Funds stood at 7.8% in Q3FY25 as compared to 7.5% in Q3FY24. Cost to income stood at 76.8% in Q3FY25 as compared to 61.6% in Q3FY24. Profit After Tax (PAT) decreased by 41.8% YoY from Rs 57.2 crore to Rs 33.3 crore. Business Highlights: Gross Advances stood at Rs 9,563 crore as on December’24 as compared to Rs 7,600 crore as on December’23, an increase of 25.8% YoY. Disbursementsstood at Rs 1,467 crore in Q3FY25 as compared to Rs 1,792 crore in Q3FY24, decrease of 18.1% YoY. The Retail Assets (wheels and mortgages) disbursement showed an increase of 24% on a YoY basis, also Mortgages portfolio nearing Rs 2000 crore. The bank has implemented the MFIN guardrails 2.0, resulting in a 25% decline QoQ in IF business, yet a notable increase in secured business lending was observed. Deposits stood at Rs 9,708 crore as on December’24 as compared to Rs 6,484 crore as on December23, an increase of 49.7% YoY. Current bucket Collection Efficiency (1 EMI Cap) stood at 97.9% in Q3FY25. Collection Efficiency (1 EMI adjusted) stood at 90.6% in Q3FY25 as compared to 95.8% in Q3FY24. Baskar Babu Ramachandran, MD & CEO, Suryoday Small Finance Bank, said: The bank has witnessed a growth in its portfolio primarily on account of the growth in disbursements in the Retail Assets businesses i.e mortgages and wheels. The microfinance portfolio witnessed a nominal de-growth primarily due to the overall market scenario and voluntary implementation of MFIN guardrails 2.0. The bank as part of prudent risk management strategy, started covering the eligible unsecured loans under the CGFMU scheme, since FY23, thereby making these loans quasi-secured. This coverage was initiated considering the cyclicality that the sector faces. The deposit growth has outpaced the growth in assets with the digital deposit mobilization contributing to the growth. Several initiatives have been undertaken during the quarter: Digital deposits accelerated to Rs 2.5 crore per day. Introduction of “Double Joy Deposit” – a long term, guaranteed return deposit plan – one of the first in the banking space. Suo-moto implementation of MFIN guardrails 2.0. Launch of MSME loans – Dhanashree – predominantly digital. We are focused on improving the key metrics in our Inclusive Finance business with specific focus on collections and the current trends are encouraging. We are confident of delivering our revised guidance in the current quarter. Result PDF