Suryoday Small Finance Bank Limited announced its unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27) through a regulatory filing submitted to both National Stock Exchange of India Limited and BSE Limited. The disclosure was made under Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Business Performance Highlights

  • Gross Advances stood at ₹14,376 crore as of June 2026, showing 32.5% year-on-year growth from ₹10,846 crore in June 2025 and 8.4% quarter-on-quarter growth from ₹13,261 crore in Q4 FY26
  • Total disbursements were ₹2,954 crore in Q1 FY27, increasing 30.6% year-on-year from ₹2,261 crore in Q1 FY26, though showing a 4.0% decrease from ₹3,077 crore in Q4 FY26
  • Vikas Loan disbursement specifically increased by 19.3% year-on-year
  • Deposits reached ₹14,634 crore as of June 2026, growing 29.4% year-on-year from ₹11,312 crore in June 2025 and 4.6% quarter-on-quarter from ₹13,994 crore in Q4 FY26
  • Retail Deposit to Total Deposit ratio improved to 87.3% from 81.6% year-on-year (575 bps improvement) and from 86.0% quarter-on-quarter (131 bps improvement)
  • CASA Ratio stood at 21.0%, improving from 17.7% year-on-year (326 bps improvement) though decreasing from 22.6% quarter-on-quarter (160 bps decrease)
  • Collection Efficiency stood at 99.2% for Current bucket and 92.5% for 1 EMI adjusted, improving from 86.4% in Q1 FY26

Financial Performance

  • Net total income increased by 30.3% year-on-year to ₹463.6 crore from ₹355.8 crore
  • Net interest income (NII) grew by 27.8% year-on-year to ₹315.7 crore from ₹247.1 crore
  • Pre-provision operating profit (PPOP) increased by 27.2% year-on-year to ₹138.6 crore from ₹108.9 crore
  • Profit After Tax (PAT) stood at ₹75.2 crore in Q1 FY27, showing 113.1% year-on-year growth from ₹35.3 crore in Q1 FY26
  • Return on Assets (ROA) was 1.6% and Return on Equity (ROE) was 14.5%
  • Book Value Per Share (BVPS) increased to ₹202.8 from ₹184.5 year-on-year (9.9% growth) and from ₹195.5 quarter-on-quarter (3.7% growth)

Key Metrics and Ratios

  • Yield stood at 16.2%, decreasing 59 bps year-on-year and 116 bps quarter-on-quarter
  • Net Interest Margin (NIM) remained stable at 7.2% year-on-year but decreased 70 bps quarter-on-quarter from 7.9%
  • Cost of Deposits improved to 7.4% from 7.9% year-on-year (50 bps improvement) and from 7.6% quarter-on-quarter (17 bps improvement)
  • Cost of Borrowings stood at 7.8%, improving 28 bps year-on-year but increasing 30 bps quarter-on-quarter
  • Cost of Funds improved to 7.5% from 7.9% year-on-year (46 bps improvement) and remained stable quarter-on-quarter
  • Cost to income ratio stood at 70.1%, increasing 72 bps year-on-year but improving 360 bps quarter-on-quarter from 73.7%

Asset Quality

  • Gross NPA (GNPA) ratio improved to 6.5% from 8.5% year-on-year (198 bps improvement) and remained stable quarter-on-quarter
  • Net NPA (NNPA) ratio improved significantly to 1.2% from 5.6% year-on-year (439 bps improvement) and from 4.2% quarter-on-quarter (291 bps improvement)
  • Provision Coverage Ratio (PCR excluding technical write-offs) improved dramatically to 81.8% from 35.4% year-on-year (4,643 bps improvement) and from 37.3% quarter-on-quarter (4,449 bps improvement)
  • Absolute GNPA stood at ₹931 crore and NNPA at ₹170 crore as of June 2026
  • Against the NPA amounts, ₹134 crore is receivable under CGFMU scheme
  • The bank has received ₹387 crore of CGFMU claims, contributing to the high PCR

Management Commentary

Mr. Baskar Babu Ramachandran, MD & CEO, commented that the bank commenced FY27 on a positive note with steady business growth while maintaining focus on expansion, risk management, and sustainable profitability. He highlighted the continued strength of the retail liability franchise, diversification into secured retail portfolio including Wheels Finance, Mortgage, MSME and Supply Chain Finance, and healthy traction in Vikas Loan portfolio through individual underwriting. The CGFMU framework provides significant support to the balance sheet. He emphasized the bank's focus on building Vikas Loan portfolio, expanding secured lending, strengthening retail deposit franchise, accelerating digital capabilities, and delivering sustainable growth while maintaining profitability and asset quality.

Company Background

Suryoday Small Finance Bank Limited is a scheduled commercial bank that commenced operations as an NBFC and converted to an SFB on January 23, 2017, after receiving RBI Final Approval. The bank has a presence across 17 states and UTs through 718 banking outlets, with strong presence in Maharashtra, Tamil Nadu and Odisha. The bank is listed on NSE and BSE.