Suryoday Small Finance Bank Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross Advances: ₹14,376 Cr (+32.5% YoY)
  • Disbursements: ₹2,954 Cr (+30.6% YoY)
  • Collection Efficiency (one EMI adjusted): 92.5% (vs 86.4% in Q1 FY26)
  • Branch Network: 718 outlets (383 asset-focused, 138 liability-focused, 197 rural centers)
  • Employee Count: 8,259
  • Customer Base: 6.2 million (+77.1% YoY)

Key drivers of operational performance: Focus on Vikas Loan & NTB VL (comprises 75% of micro banking portfolio), scaling Retail Assets (40.8% YoY growth), and digital banking initiatives including Credit on UPI and digital deposits.

Segment-wise Performance

Inclusive Finance (Micro-banking): ₹6,389 Cr (44.4% of total book)

  • Vikas Loan: ₹4,775 Cr (74.7% of IF book, 40.0% YoY growth)
  • JLG: ₹1,614 Cr

Retail Assets: ₹7,988 Cr (55.6% of total book)

  • Mortgage (including MHL): ₹3,234 Cr
  • Housing Loans: ₹854 Cr
  • LAP: ₹1,743 Cr
  • Micro-Mortgages: ₹637 Cr
  • Vehicles: ₹1,971 Cr (CV crossed ₹1,900 Cr)
  • FIG: ₹1,509 Cr
  • Supply Chain Finance: ₹441 Cr
  • MSME: ₹207 Cr
  • Others: ₹625 Cr

Explanation of significant changes in segment performance: Growth in Retail Assets driven by focus on secured lending products including CV financing (+55% YoY guidance) and mortgage products (+45% YoY guidance).

Financial Highlights

Revenue: Not explicitly stated in standalone format

NII: ₹315.7 Cr (+27.8% YoY)

PAT: ₹75.2 Cr (+113.1% YoY)

EPS: Not specified

Margins:

  • Yield: 16.2% (Yield on Non-NPA Advances: 17.4%)
  • NIM: 7.2% (0 bps YoY, -70 bps QoQ)
  • Cost of Funds: 7.5% (-46 bps YoY)
  • CTI Ratio: 70.1% (+72 bps YoY)

YoY/QoQ comparison:

  • PAT increased 113.1% YoY and 51.2% QoQ
  • Pre-POP: ₹138.6 Cr (+27.2% YoY)

Drivers of financial performance: Higher advances growth, improved asset quality, and operational efficiencies.

Comparison to market estimates: Not specified

Key Risks: Not explicitly disclosed in presentation

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Regional Breakdown:

  • Maharashtra: 185 branches
  • Tamil Nadu: 118 branches
  • Karnataka: 112 branches
  • Odisha: 104 branches
  • Uttar Pradesh: 48 branches
  • Gujarat: 41 branches
  • Rajasthan: 39 branches
  • Madhya Pradesh: 35 branches
  • Others: 36 branches

Balance Sheet Snapshot

Total Assets: ₹20,203.9 Cr (+25.8% YoY)

  • Advances: ₹13,354.1 Cr (+26.9% YoY)
  • Investments: ₹3,865.3 Cr (+16.3% YoY)
  • Cash and Bank: ₹1,603.8 Cr (+12.1% YoY)
  • Fixed Assets: ₹295.0 Cr (+3.2% YoY)
  • Other Assets: ₹1,085.7 Cr (+118.5% YoY)

Capital and Liabilities:

  • Deposits: ₹14,633.6 Cr (+29.4% YoY)
  • Borrowings: ₹2,640.5 Cr (+15.6% YoY)
  • Reserves and Surplus: ₹2,049.4 Cr (+10.5% YoY)
  • Capital: ₹106.3 Cr (flat YoY)
  • Other Liabilities and Provisions: ₹774.2 Cr (+54.5% YoY)

Financial Health Insights: Strong growth in retail deposits (87.3% of total deposits), adequate capitalization with CRAR at 22.9%, and improved profitability metrics.

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not specified

Investment Rationale: Focus on digital banking initiatives, branch expansion (100 new branches planned), and scaling secured asset products.

Strategic & R&D Initiatives

Investments in Innovation:

  • Credit Line on UPI: ~20 lakh pre-qualified customers, 9.4 lakh sanctioned, 5 lakh utilized
  • Secured Credit Card: FD-backed UPI credit card launched
  • Digital MSME underwriting: 1-min pre-approval for loans <₹5 lakhs
  • 3-year tech roadmap for tech-led, customer-first bank

Expected impact on growth: Digital deposits scaled 2x from FY25-FY26 with ₹6 crore/day run rate and low CAC

Strategic Rationale: Expanding into high-growth secured asset segments, deepening customer relationships through digital offerings, and leveraging partnerships for granular growth.

Industry Trends & Business Environment

Macro/Industry Trends: Not explicitly discussed

Impact on Company: Not specified

Management Commentary & Growth Outlook

Strategic Outlook: "FY27 Year of Building Momentum & Consistency"

FY Guidance:

  • Advances growth: 30% to 35%
  • Deposit growth: 30% to 35%
  • RoA: 1.3% to 1.4%
  • RoE: 13% to 14%
  • GNPA: ~3% & NNPA: <0.3% (CGFMU Adjusted)
  • Micro-banking target: ~₹7,500 Cr (+25% YoY)
  • Retail assets target: +45% YoY growth

Market Share Targets: Not specified

Risks and Opportunities: Continue to cover ~100% of eligible portfolio under CGFMU scheme

ESG Updates

CSR Initiatives:

  • Ujjwal: Financial literacy for school children (14-20 years) in Maharashtra, Tamil Nadu, Puducherry, Odisha
  • Spandan: Preventive health programs for women and children in same regions
  • Swayamshree: Financial education for rural communities in same regions
  • Adhira: Financial capability building for domestic workers in Maharashtra (4,890 beneficiaries)
  • Vidya: Counselling services for students in same regions (146 beneficiaries)