Suryoday Small Finance Bank posts profit of Rs 39 cr for Jan-Mar

Suryoday Small Finance Bank on Monday reported a net profit of Rs 39 crore for the March quarter of 2022-23 with reduced bad loans.

The bank recorded a net loss of Rs. 48 crore for the same quarter last year.

Total income during the fourth quarter of FY23 rose to Rs. 363 crore from Rs. 257 crore in the same quarter of the previous year, Suryoday Small Finance Bank said in a regulatory filing.

Interest income also increased to Rs. 329 crore from Rs. 237 crore in the same period last year.

The lender’s asset quality has improved, with total non-performing assets (NPAs) dropping significantly to 3.13 percent of total advances as of March 31, 2023, from 11.8 percent a year earlier.

Similarly, net NPAs, or bad loans, fell to 1.55 percent from 5.97 percent in the same quarter last year.

Thus, the bank has set aside Rs 51 crore for bad loans and contingencies as against the Rs 112 crore set aside for the quarter last year.

For the entire period 2022-23, the bank earned a net profit of Rs. 78 crore as against a loss of Rs. 93 crore in the previous financial year.

Commenting on the performance, Managing Director of Suryoday Small Finance Bank, MD Baskar Babu said the bank’s payments for FY23 were Rs. 5,083 crore, an increase of 44.1 per cent over Rs. 3,528 crore in the previous year.

Looking forward to FY24, he said, the bank aims to focus on increasing total advances by 30 percent, deposits by 35 percent, achieving a return on assets of 2.2 percent, and a return on equity (ROE) of 15 percent.

Operationally, he said, key areas of focus include product diversification, keeping the GNPA level below 2 percent and the NNPA level below 0.