Company Overview

Suryoday Small Finance Bank Limited (BSE: 543279, NSE: SURYODAY) has convened its 18th Annual General Meeting on August 6, 2026, to approve FY26 financial results and key corporate actions.

Financial Performance

FY26 demonstrated strong growth with net profit increasing 32% to ₹151.97 crore from ₹114.97 crore in FY25. Total business reached ₹26,488 crore with gross advances growing to ₹13,261 crore (up 29.4% YoY) and deposits reaching ₹13,994 crore (up 32.3% YoY). The bank maintained healthy capital adequacy at 20.45% (Tier-I: 19.6%, Tier-II: 0.9%) and reported return on assets of 0.9% with return on equity at 7.6%.

Dividend and Capital Plans

The Board recommended a final dividend of ₹1.50 per equity share (15% of face value) subject to shareholder approval at the AGM, with record date fixed for July 17, 2026. The bank seeks approval for raising ₹300 crore through Tier-1 capital (equity shares, warrants via Rights/Preferential/QIP) and ₹200 crore through Tier-2 debt instruments to support future growth plans.

Asset Quality and Ratios

Asset quality improved with gross NPAs reducing to 6.55% (₹864 crore) from 7.16% in FY25, while net NPAs stood at 4.21% (₹542 crore). The bank maintained strong liquidity with Net Stable Funding Ratio at 159.15%, well above regulatory requirements. Net interest margin was 7.35% with cost of deposits at 7.68%.

Corporate Governance and Board Structure

The Board comprised 10 directors including 7 independent directors (70% independence). Two new independent directors were appointed in March 2026, and reappointments include Mr. Krishna Prasad Nair as Non-Executive Part-time Chairman for 3 years and Mr. Baskar Babu Ramachandran as MD & CEO until January 2029. The AGM includes resolutions for revised remuneration for MD & CEO (₹250 lakh fixed + variable) and Executive Director (₹190 lakh fixed + variable).

Operational and Regulatory Compliance

The bank maintained 10 Board committees overseeing various functions including audit, risk management, and CSR. Employee strength stood at 8,574 with business per employee at ₹3.09 crore. The bank incurred a ₹2 lakh RBI penalty for SGL bouncing but maintained strong credit ratings (A Stable for long-term debt, A1+ for short-term). CSR initiatives reached 81,650 beneficiaries across financial literacy, healthcare, and livelihood programs.