Suryoday Small Finance Bank’s Q4 PAT jumps 56.5%, stock up 2%

Net interest margin fell from 10.4% in Q4FY23 to 10.1% in Q4FY24 but showed a slight improvement on a sequential basis. Operating profit rose 26.2% to ₹128 crore. Provisions and contingencies witnessed a slight decrease of 6.4% at ₹48 crore.

Suryoday Small Finance Bank experienced growth in its gross advances, which surged by 41.5% to ₹8,650 crore by the end of March. Deposits rose 50.5% increase to ₹7,777 crore. Retail deposits accounted for 79% of the total deposits. The current account savings account (CASA) ratio improved to 20.1% from 17% a year ago.

Meanwhile, the bank’s asset quality improved with its gross non-performing assets (GNPA) ratio decreasing to 2.8% during the quarter as compared to 3.1% in the same period a year ago. Meanwhile, the net NPA ratio stood at 0.8%, registering a 68 basis points decline.

Baskar Babu, managing director and chief executive officer at Suryoday Small Finance Bank, attributed the bank’s growth to continued focus on key businesses such as inclusive finance, commercial vehicle, and loan against property (LAP). “Going forward, our strategy would be to transition from predominantly being a micro-lender to becoming a micro-banker for low-income households with a sharp focus on going deeper into existing geographies and continuing to provide holistic banking services to our customers. Going granular on both the lending and deposit sides would be the key enabler to achieving our core strategy,” he added.

Shares of the company have gained over 32% since the beginning of the year. The stock has risen nearly 81% in the last one year.