Suryoday Small Finance Bank announced FY23 results: Net interest income stood at Rs 746.6 crore as compared to Rs 584.5 crore, an increase of 27.7% YoY Net total income stood at Rs 844.0 crore as compared to Rs 678.0 crore, an increase of 24.5% YoY Our cost of funds for FY23 reduced to 6.7% compared to 7.0% in FY22 Cost to income stood at 60.0% as compared to 60.9% in FY22, Cost to income ratio for FY23 has been adjusted for adjusted for one time ARC related provision of Rs 21.5 crore Pre-Provisioning Operating Profit stood at Rs 337.5 crore (adjusted for one time ARC related provision of Rs 21.5 crore) crore as compared to Rs 264.9 crore an increase of 27.4% YoY Gross NPA stood at 3.1% (FY22 - 11.8%) Net NPA stood at 1.5% (FY22 - 5.9%) Provision coverage ratio (excluding technical write offs) stood at 51.5% (FY22 - 55.6%) CRAR of the Bank stood at 33.7%; Tier I capital of 30.8% and Tier II capital of 2.9% (FY22 - 37.9%) Commenting on the performance, Mr. Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said: “FY23 marked the first normalized year post-COVID, witnessing a significant rebound in the overall economy. The bank's Gross Advances in FY23 crossed Rs 6,000 Crores, with the Vikas Loan Portfolio crossing Rs 1,200 Crores. Vikas Loan is the bank's flagship product in unsecured business loans offered to the bank’s existing graduating JLG customers, driven by increased government support for nurturing MSME growth. Consequently, the AUM of the Vikas Loan grew to Rs 1,232 crores in FY23 from Rs 213 crores, while the customer base for the same grew over 2.5 times to ~1.9 lakh customeRs The bank has experienced remarkable improvement in Gross Non-Performing Assets (GNPA), which reduced to 3.1% in FY23 from 11.8% in FY22, and Net Non-Performing Assets (NNPA), which decreased to 1.5% in FY23 from 5.9% in FY22. The bank is confident of maintaining GNPA of less than 2% and NNPA of less than 1%. The bank's collection efficiency, as of FY23, stands at 102.2%. Furthermore, we have achieved a Profit After Tax of Rs 77.7 crores in FY23, a significant improvement from the loss of Rs 93.0 crores in FY22. In terms of disbursement, the bank’s disbursements for FY23 stood at Rs 5,083 crores, a 44.1% increase from Rs 3,528 crores in FY22. Additionally, Gross Advances grew from Rs 5,063 crores in FY22 to Rs 6,114 crores in FY23, representing a 20.8% increase (Adjusted for ARC Rs 6,541 crores with growth of 29.2%). These numbers indicate that our AUM, disbursements and profitability have returned to pre-COVID levels, driven by the revival of the overall economy, strong on-ground demand, and increased geographical presence. Looking ahead to FY24, the bank aims to focus on growing Gross Advances by ~30%, Deposits by ~35%, achieving a Return on Assets (ROA) of ~2.2%, and a Return on Equity (ROE) of ~15%. Operationally, our key areas of focus include product diversification, maintaining GNPA level below 2.0% and NNPA level below 0.5%, leveraging digital initiatives through multiple apps, taking CGFMU cover for JLG and Vikas Loan, building a Vikas loan book of ~Rs 2,000 crores and expanding our branch network.” Result PDF
Suryoday Small Finance Bank announced Q3FY23 results: 9MFY23: Net interest income stood at Rs 536.5 crore as compared to Rs 438.0 crore, an increase of 22.5% YoY. Net total income stood at Rs 599.9 crore as compared to Rs 511.6 crore, an increase of 17.3% YoY. Cost of funds reduced YoY to 6.6% from 7.1% (in 9MFY22) Cost to income ratio – including the impact of loss on sale of stressed loans of Rs 21.5 crore - stood at 60.7% as compared to 56.8% in 9MFY22. Pre-Provisioning operating profit stood at Rs 235.8 crore (including the impact of loss on sale of stressed loans of Rs 21.5 crores) as compared to Rs 216.5 crore an increase of 8.9% YoY (18.9% YoY adjusted for the impact of loss on sale of stressed loans. Business Performance 9MFY23: The bank's gross advances stood at Rs 5,408.2 crore as compared to Rs 4,872.3 crore in 9MFY22, an increase of 11.0% YoY: 19.6% normalised YoY growth (including ARC portfolio of Rs 418.7 crores) Disbursements for 9MFY23 stood at Rs 3,395.6 crore as compared to Rs 2,547.7 crore, an increase of 33.3% YoY. Disbursement activities are back to pre-covid levels owing to healthy on ground demand. Deposits stood at Rs 4,696.9 crore as compared to Rs 3,169.6 crore, registering a strong growth of 48.2% YoY. Share of retail deposits stood at 77.9%. Overall collection efficiency as of December 2022 stood at 110.4%. The bank has 21.9 lakh customers, an increase of 18.4% over the same period last year. Total number of branches stood at 571, with 92 being liability-focused outlets, 364 being asset-focused branches and 115 rural centres Total number of employees stood at 6,094 Commenting on the performance, Mr. Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said: "For 9MFY23 the bank has undertaken a careful approach in disbursing new loans, with a strong emphasis on collections. We took the correct steps at the right time to reduce the risk of portfolio delinquencies while maintaining asset quality. The Bank’s Gross Advances as of December 2022 registered a growth of 11.0%, which stood at Rs 5,408.2 (excludes ARC portfolio of Rs 418.7 crore as of Dec-22) compared to Rs 4,872.3 same period last year. Disbursement for the period grew by 33.3% which stood at Rs 3,395.6 crore as compared to Rs 2,547.7 crore in the same period last year. Disbursement activities are back to pre-covid levels and is showing progressive momentum owing to healthy on ground demand. As of December 2022, the bank has registered a strong deposit growth of 48.2%, which stood at Rs 4,696.9 crore as compared to Rs 3,169.6 crore same period last year. The Bank has reported a Profit After Tax of Rs 38.8 crore as compared to a loss of Rs 44.9 crore in 9MFY22. The Bank’s continued focus on collection efforts has shown good progress. The collection efficiency as of December 2022 stood at 110.4%. The Bank is also focusing on expanding affordable home loans and secured business loans especially in urban and semi-urban locations as this segment shows greater resilience and better collection efficiency and has the potential to emerge as a staple product in the Bank’s portfolio. The Bank is also focusing on offering Vikas Loan (VL) to its graduating microfinance customers that provides end-to-end digital solution including collections through Standing Instruction. As of December 2022, Vikas Loan Book stood at Rs 828 crore with PAR of 0.9%. The Bank is firmly committed to being the Bank of Choice for its Inclusive Finance customer segment by offering enhanced products including secured products and enhanced customer experience.” Result PDF
Conference Call with Suryoday Small Finance Bank Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript.
Suryoday Small Finance Bank announced Q2FY23 results: H1FY23: Net interest income stood at Rs 353.0 crore as compared to Rs 270.7 crore, an increase of 30.4% YoY Net total income stood at Rs 390.8 crore as compared to Rs 326.1 crore, an increase of 19.8% YoY Cost of funds reduced to 6.6% compared to 7.3% in H1FY22 Cost to income stood at 55.9% as compared to 58.3% in H1 FY22, primarily due to increase in income Pre-provisioning operating profit stood at Rs 172.5 crore as compared to Rs 135.9 crore an increase of 26.9% YoY Asset Quality and Capital H1FY23: Gross NPA stood at 9.9% (Rs 532.6 crore) Net NPA stood at 4.8% (Rs 242.4 crore) The provision coverage ratio (Including technical write-offs) stood at 77.5% CRAR of the bank stood at 35.9%; Tier I capital at 33.1% and Tier II capital at 2.8% Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said: "The bank has demonstrated steady performance in H1FY23 as the microfinance and connected lines of business have almost recovered back to its pre-Covid levels of growth. The bank’s gross advances for the period grew by 20.3%, which stood at Rs 5,378.4 crore, while disbursement for the period grew by 50.3%, which stood at Rs 2,130.4 crore, as compared to Rs 1,417.8 crore in the same period last year. Disbursement activities are gradually gaining momentum owing to healthy on-ground demand scenario. Our inclusive finance loans, where we provide microfinance loans to the country’s unbanked and underbanked, contributed 64.4% of the total advances book. In the long term, the banks’ focus will be to increase the share of a secured lending portfolio comprising affordable housing loans, micro business loans, business loans and commercial vehicles loans. In this endeavour, the bank has ramped up its disbursals under the micro-home loans segment, while have commenced disbursing loans under the two-wheeler segment In terms of asset quality, the GNPA stood at 9.9% at the end of H1FY23, down from 10.2% in H1FY22. Net NPA was 4.8% in HFY23 compared to 4.5% in H1FY22. Overall collection efficiency as on September 2022 stood at 94.6%. It will be the bank’s prime endeavour to further improve upon the collection efficiency and bring down the levels of both gross and net NPA. Additionally, the bank is well capitalised with a CRAR of 35.9% and a balance sheet liquidity of Rs 1,095.0 crore, which makes us well-positioned and agile to achieve the anticipated growth. Banks’ Tier-1 capital stood at 33.1% and Tier-2 capital stood at 2.8%. Going forward, we intend to continue our focus on expanding our business lines, while parallelly improving our collection efficiency.” Result PDF