Suryoday Small Finance Bank reported a 10 per cent year-on-year (y-o-y) decline in second quarter (Q2FY25) net profit at ₹45 crore against ₹50 crore in the year ago quarter, with provisions towards bad loans weighing on the bottomline.
Net interest income (difference between interest earned and interest expended) was up 36 per cent y-o-y at ₹300 crore (₹221 crore in the year ago quarter).
Other income, including processing fee, profit/ loss on sale and revaluation of investments, non-fund based income such as commission earned from guarantees, selling of third party products, income from dealing in PSLC, etc., declined 8 per cent y-o-y to ₹47 crore ( ₹52 crore).
Net interest margin rose to 9.7 per cent in Q2FY25 against 9.4 per cent in Q2FY24.
Provisions towards bad loans shot up 150 per cent y-o-y to ₹67 crore ( ₹27 crore).
Gross non-performing assets (GNPAs) increased to 3.03 per cent of gross advances as at September-end 2024 against 2.90 per cent as at September-end 2023. Net NPAs, however, declined to 0.80 per cent of net advances against 1.46 per cent due to higher provisioning.
Gross advances increased by 35.2 per cent y-o-y to ₹9,360 crore as at September-end 2024 (₹6,921 crore as at September-end 2023). Disbursements stood at ₹1,682 crore in Q2FY25 as compared to ₹1,598 crore in Q2FY24, an increase of 5.2 per cent y-o-y.
Total deposits rose by 38.6 per cent y-o-y to stand at ₹8851 crore as at September-end 2024 (₹6387 crore).The share of current account, savings account deposits improved to 17.9 per cent of total deposits from 15.7 per cent.
Baskar Babu R, MD & CEO, said: “We remain focused to improve our deposit base by gradually increasing share of retail deposits, as on September 2024 our retail deposits stood at 80.2 per cent of the total deposits.”
He observed that overall the industry is passing through a difficult phase of asset quality deterioration, but the bank through prudent underwriting and robust risk management was able to maintain healthy asset quality.
“Our NNPA has improved to 0.8 per cent in Q2FY25. The bank continues to cover its eligible unsecured portfolio under the CGFMU scheme to mitigate risks,” Babu said.
