Suryoday Small Finance Bank Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Gross advances rose 18.5% YoY to ₹10,251 Cr, while deposits grew 36% YoY to ₹10,580 Cr. CASA ratio improved to 20.9%, supporting a retail deposit share of 81.1%. Net interest income increased 15% YoY to ₹1,106 Cr, but NIM compressed to 7.8% from 9.0%, due to higher cost of funds at 8.1%. Operating profit after CGFMU expense declined 14.3% YoY to ₹389 Cr, with PAT down 46.8% to ₹115 Cr. Asset quality slipped, with GNPA rising to 7.2% and NNPA to 4.6%, partially mitigated by ₹460 Cr under CGFMU insurance. Capital stood stable at ₹106 Cr, maintaining a robust CRAR near 28%.

2. Strategic Initiatives & Growth Drivers:

The secured loan mix is targeted to increase to 55%, fueled by mortgages and commercial vehicles. Non-IF disbursements gained 50%, signaling diversification from microfinance risk. MSME loans exceeded ₹30 Cr with 20% CASA mix. Digital traction grew with ₹350 Cr in digital FDs and ₹3 Cr daily deposit inflows. New digital products including a pilot secured credit card aim to deepen client engagement and reduce costs. Branch expansion reached 710 outlets, enhanced by Smart Banking productivity tools.

3. Business Developments:

New offerings such as car loans, micro and small enterprise loans, and supply chain finance crossed ₹250 Cr. Individual lending benefits from 98% CGFMU insurance coverage. The bank scaled geographically across 15 states with fintech partnerships boosting digital onboarding. Vehicle finance and mortgages grew steadily, supported by improved underwriting analytics and centralized credit operations for faster turnaround.

4. Market Position & Competitive Advantage:

Targeting the aspiring middle class and underserved segments, the bank’s diversified secured lending approach shifts away from microfinance dependence. With 3.4 Mn customers and deep rural reach, it leverages advanced credit analytics and CGFMU coverage of 98%+ IF portfolio for risk control. The hybrid sourcing model combining in-house and partnerships accelerates scaling. The robust digital infrastructure on Finacle CBS supports operational agility.

5. Investor Implications:

Advance and deposit growth of 30-45% is on the horizon, driven by a rising secured loan share and stronger liabilities franchise. Margin pressure and elevated credit costs pose short-term headwinds. Monitoring asset quality trends and CGFMU claim timelines will be crucial. Digital and MSME segments offer new growth avenues. Execution risks remain around credit quality and cost management, but strategic positioning in a large underserved market signals strong growth potential.