Suryoday Small Finance Bank Posts 47% Net Profit Rise in Q1 2024

Suryoday Small Finance Bank reported a 47% increase in net profit, reaching Rs 70 crore in Q1 2024, driven by a decline in bad loans. Total income rose to Rs 558 crore, with net interest income growing by 30.5%. The bank's gross and net NPA ratios also saw improvements.

Suryoday Small Finance Bank on Thursday reported a 47 per cent rise in net profit at Rs 70 crore in the first quarter ended June 2024 due to a decline in bad loans.

The bank had posted a net profit of Rs 48 crore in the April-June period of the previous year. Total income in the first quarter of the current fiscal rose to Rs 558 crore, against Rs 409 crore a year ago, Suryoday Small Finance Bank said in a regulatory filing.

The lender's interest income also increased to Rs 488 crore from Rs 358 crore in the same quarter a year ago. The bank's net interest income (NII) grew by 30.5 per cent to Rs 293 crore in the first quarter of the current financial year, it said.

Gross Non-Performing Assets (NPAs) declined to 2.77 per cent of the gross advances by June 2024 from 3 per cent in the same quarter a year ago. The net NPA too declined to 0.4 per cent from 1.6 per cent in the same period of the previous year.

The capital adequacy ratio of the bank declined to 27.27 per cent at the end of June compared to 32.65 per cent in the year-ago period. Suryoday Small Finance Bank MD & CEO Baskar Babu said this performance is in line with the guidance provided by the bank for FY25.

'Our focus on improving our deposit base is evident with reducing share of bulk deposits, with retail deposits now constituting around 79 per cent of the total deposits as of June 2024, and CASA now representing 17.7 per cent of our overall deposits, up from 14.9 per cent in June 2023,' he said.

(With inputs from agencies.)