Suryoday Small Finance Bank reports ₹39-crore net profit in Q4FY23

Suryoday Micro Finance Bank (SSFB) reported a net profit of Rs. 39 crore in the fourth quarter as against a net loss of Rs. 48 crore in the year-ago period on the back of healthy growth in net interest income and other income and a sharp decline in loan loss provisions.

Net interest income increased by 43 per cent year-on-year to Rs. 210 crore (Rs. 146 crore in the year-ago quarter). Other income jumped 70 per cent YoY to Rs.34 crore (Rs.20 crore).

Net interest margin improved to 10.4 percent, compared to 7.8 percent in the same quarter last year.

Loan loss provision decreased by 54 per cent year on year to Rs.51 crore (Rs.112 crore).

NPAs down

GNPAs fell to 3.13 percent of total advances in the reporting quarter, compared to 4.23 percent in the previous quarter.

Net NPAs fell to 1.55 percent of net advances in the reporting quarter, compared to 2.74 percent in the previous quarter.

At the end of March 2023, deposits increased by 34 percent year-on-year and amounted to Rs. 5,167 crore. Advances increased by 27 per cent year-on-year to Rs.6,015 crore.

Basker Babu R, Managing Director and Chief Executive Officer, said: “These numbers indicate that our assets under management, payments and profitability have returned to pre-COVID levels, driven by a macroeconomic revival, strong demand for land and increased geographic presence.

“Looking into FY24, the bank aims to focus on increasing total advances by about 30 percent, and deposits by about 35 percent… Operationally, our key areas of focus include product diversification, keeping GNPA level below 2 percent and NNPA level of less than 0.5 percent.