Suryoday Small Finance Bank Ltd. share price target

We hosted the management of Suryoday Small Finance Bank (SURYODAY) to understand the business prospects.

Suryoday SFB (Suryoday) accelerated its balance sheet clean-up (ARC sale worth Rs4.92bn) and unveiled its reinvented business model in Q3FY23. Its key strategic tweaking of the business model includes: i) reducing exposure in Maharashtra, ii) focus on NTB customers rather than NTC, iii) focus on scaling Vikas loans, iv) thrust on reducing unsecured loans, v) accelerating retail deposit mobilisation, and vi) strengthening the technology platform.

Suryoday SFB’s (Suryoday) Q2FY23 financial performance was a continuation of its earlier stated strategy of cleaning out covid-related stress in H1FY23 and achieve business normalcy by H2FY23.

Suryoday SFB’s (Suryoday) Q1FY23 financial performance is a continuation of its earlier articulated strategy of cleaning covid-related stress during H1FY23 and by H2FY23 achieve business normalcy.

Suryoday Small Finance Bank is among the leading SFBs in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020. Company has over a decade experience in serving customers in the unbanked and under-banked segments in India and

Suryoday Small Finance Bank Limited IPO Note Issue Open: Mar 17 Mar 19, 2021 Price Band: Rs. 303 305 (Rs.30 discount for eligible employees) *Issue Size: 19,093,070 eq shares (Fresh issue 8,150,000 + Offer for sale of 10,943,070 eq sh) *Issue Size: Rs. 578.52 582.34 cr

Gross loan portfolio has grown at a CAGR of 46.98% from | 1717.7 crore in FY18 to | 3710.8 crore as of FY20 and was | 3902.8 crore as of Q3FY21. NII has increased at 72% CAGR from | 165.8 crore in FY18 to | 490.9 crore in FY20 and was at | 353.2 crore in 9MFY21. PAT has increased at 212% CAGR from | 11.4 crore in FY18 to | 111.1 crore FY20 and was at | 54.8 crore in 9MFY21. The cost-to-income ratio has reduced from 64.44% in FY18 to 47.05% in FY20 and was 55.39% in 9MFY21. Well diversified asset portfolio augments well...