Suryoday Small Finance Bank Limited — Important, 23-01-2025: Financial Result Updates

Suryoday Small Finance Bank Limited has announced a board meeting regarding the unaudited financial results for the quarter and nine months ended December 31, 2024.

**Consolidated Financial Performance**

For the nine months ended December 2024, total income rose to ₹1,018.6 crore, up 20.4% YoY, driven by a significant increase in net interest income (NII), which climbed 24.6% YoY to ₹861.5 crore. Gross advances reached ₹9,563 crore, reflecting a robust growth of 25.8% YoY, while disbursements grew 6.7% YoY to ₹4,888 crore. Deposits also saw a substantial increase of 49.7% YoY, totaling ₹9,708 crore.

**Profitability**

Net profit after tax decreased by 4.1% YoY to ₹148.7 crore. However, profitability metrics such as Return on Assets (ROA) and Return on Equity (ROE) stood at 1.6% and 10.3%, respectively. The bank's cost-to-income ratio rose to 66.4% from 61.5% a year earlier, indicating higher operational costs.

**Asset Quality**

Gross Non-Performing Assets (GNPA) rose to 5.5% and Net NPA (NNPA) to 3.1%. Adjustments based on expected claims under the Credit Guarantee Fund for Micro Units scheme indicate a normative GNPA of 2.6% and NNPA of <0.1%. The Provision Coverage Ratio (PCR) excluding technical write-offs is at 44.7%.

**Outlook**

Moving forward, Suryoday aims to maintain a growth trajectory with a forecasted advance growth of 22%-25% and a focus on securing deposit growth through digital channels. Enhancing customer acquisition and operational efficiency remains a strategic imperative. Based on current trends, a hold insight is implied as the bank navigates operational adjustments while capitalizing on growth opportunities in secured lending.