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Suryoday Small Finance Bank Reports Standalone Q1 FY27 Net Profit Surge of 113% to ₹75.2 Crore

Posted On : 2026-07-24 10:43:06( TIMEZONE : IST )

Suryoday Small Finance Bank Limited (NSE: SURYODAY, BSE: 543279) has officially released its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by sustained expansion across its credit and liability portfolios along with lower credit costs, the lender recorded a stellar performance with its Net Profit for the period surging over 113% year-on-year to ₹75.18 crore, up from ₹35.28 crore in the corresponding quarter of the previous fiscal year (Q1 FY26).

Core Financial Performance & Earnings Momentum

The bank registered strong top-line and bottom-line momentum throughout the quarter, highlighted by solid expansion in net interest income and operating profitability:

Total Income: Reached ₹770.22 crore in Q1 FY27, showing a significant growth of 27.6% compared to ₹603.82 crore in Q1 FY26 and up from ₹691.89 crore in Q4 FY26.

Interest Earned: Rose to ₹622.36 crore for the quarter, supported by interest and discount on advances amounting to ₹543.16 crore and income on investments of ₹63.19 crore.

Net Interest Income (NII): Expanded by 27.8% year-on-year to ₹315.7 crore compared to ₹247.1 crore in Q1 FY26.

Pre-Provision Operating Profit (PPOP): Increased 27.2% year-on-year to ₹138.56 crore (up from ₹108.92 crore in Q1 FY26), reflecting operational leverage and improved fee income generation.

Provisions & Contingencies: Provisions (other than tax) stood at ₹36.66 crore, declining sharply from ₹62.09 crore reported in Q1 FY26 and ₹41.32 crore in Q4 FY26.

Profit Before Tax (PBT): Rose to ₹101.90 crore, up 117.6% year-on-year compared to ₹46.83 crore in Q1 FY26.

Net Profit (PAT): Final Net Profit after tax stood at ₹75.18 crore (up 113.1% YoY from ₹35.28 crore). Basic and Diluted Earnings Per Share (EPS) improved to ₹7.07 per share for the quarter, compared to ₹3.32 in Q1 FY26.

Business Expansion & Operational Metrics

Suryoday Small Finance Bank maintained double-digit operational growth across its core advances and deposit gathering verticals:

Gross Advances: Expanded by 32.5% year-on-year to reach ₹14,376 crore as on June 30, 2026, compared to ₹10,846 crore in June 2025 (and ₹13,261 crore as of March 31, 2026).

Disbursements: Total quarterly disbursements grew 30.6% year-on-year to ₹2,954 crore. The bank highlighted that Vikas Loan disbursements expanded by 19.3% YoY.

Deposits Mobilization: Total deposits grew 29.4% year-on-year to ₹14,634 crore (vs. ₹11,312 crore in June 2025). Retail deposits accounted for 87.3% of total deposits, up 575 basis points YoY.

CASA Share: The CASA ratio improved by 326 basis points year-on-year to 21.0% (compared to 17.7% in Q1 FY26).

Yields & Margins: Net Interest Margin (NIM) remained flat YoY at 7.2%, while total Cost of Funds improved by 46 basis points year-on-year to 7.5% (down from 7.9% in Q1 FY26), reflecting lower overall deposit costs.

Asset Quality & Balance Sheet Ratios

The bank demonstrated notable improvements in asset quality metrics alongside healthy coverage shields:

Gross NPA Ratio: Decreased by 198 basis points year-on-year to 6.60% (GNPA pool of ₹931 crore) as compared to 8.46% in Q1 FY26.

Net NPA Ratio: Dropped significantly by 439 basis points year-on-year to 1.27% (NNPA pool of ₹170 crore) as compared to 5.64% in Q1 FY26. Against the NNPA pool, ₹134 crore is receivable under the CGFMU scheme.

Provision Coverage Ratio (PCR): Provisioning coverage (excluding technical write-offs) strengthened to 81.8%, compared to 35.4% in Q1 FY26.

Capital Adequacy & Returns: Capital Adequacy Ratio (CAR) remained robust at 20.03%, well clear of the regulatory threshold. Return on Assets (ROA) reached 1.6% (annualized ratio at 0.38%), while Return on Equity (ROE) stood at 14.5%. Book Value Per Share (BVPS) expanded to ₹202.8.

Segment-Wise Revenue & Profit Breakdown

For Q1 FY27, the bank reported the following segment-level performance in line with RBI guidelines and Accounting Standard 17:

Retail Banking: Segment revenue generated was ₹722.94 crore, making it the primary driver of earnings with a segment profit of ₹108.27 crore (rebound from ₹38.32 crore in Q1 FY26). Total Retail Banking segment assets stood at ₹12,080.15 crore.

Treasury Operations: Segment revenue recorded was ₹87.34 crore with segment profit before tax of ₹11.78 crore. Total Treasury assets stood at ₹5,510.33 crore.

Corporate Banking: Segment revenue generated stood at ₹46.15 crore, while segment results registered a loss of ₹14.79 crore. Corporate Banking assets totaled ₹2,523.36 crore.

Other Banking Operations: Generated segment revenue of ₹12.54 crore with a segment loss of ₹3.96 crore.

Total net segment assets across the bank expanded to ₹20,203.89 crore as of June 30, 2026, supported by total equity capital and reserves (net worth) of ₹2,137.29 crore.

Commenting on the performance, Mr. Baskar Babu Ramachandran, MD & CEO, Suryoday Small Finance Bank, said: "We have commenced FY27 on a positive note, delivering steady business growth while maintaining our focus on expansion, risk and sustainable profitability. During Q1 FY27, Gross Advances grew by 32.5% YoY to Rs.14,376 Cr, while Deposits increased by 29.4% YoY to Rs.14,634 Cr, supported by the continued strength of our retail liability franchise, with Retail Deposits contributing 87.3% of total deposits.

During the quarter, we continued to strengthen our secured retail portfolio, with healthy traction across Wheels Finance, Mortgage, MSME and Supply Chain Finance, while continuing momentum in Vikas Loan portfolio through individual underwriting. The CGFMU framework continues to provide a significant support to balance sheet with a largely covered IF portfolio. Our diversified lending strategy, supported by a granular liability franchise, disciplined underwriting with strong focus on cost and using digital as a growth engine leading to strong execution.

Overall asset quality improvement, with GNPA and NNPA at 6.5% and 1.2%, respectively, reflecting robust collection efficiencies and prudent risk management. PCR stands at 81.8% backed by Rs. 387 Cr of CGFMU claims received. As of Jun'26, GNPA Rs. 931 Cr, NNPA Rs. 170 Cr, against which Rs. 134 Cr is receivable under CGFMU scheme. The Bank reported a Profit After Tax of Rs. 75.2 Cr during the quarter, supported by healthy operating performance, improving operating leverage and controlled credit costs.

Looking ahead, we remain focused on building Vikas Loan portfolio and expanding our secured lending portfolio, further strengthening our retail deposit franchise, accelerating digital capabilities and delivering sustainable growth while maintaining a sharp focus on profitability, asset quality and while creating long-term value for all stakeholders and building a strong, enduring institution."

Shares of Suryoday Small Finance Bank Limited was last trading in BSE at Rs. 194.90 as compared to the previous close of Rs. 181.10. The total number of shares traded during the day was 136290 in over 1733 trades.

The stock hit an intraday high of Rs. 197.50 and intraday low of 182.15. The net turnover during the day was Rs. 26302062.00.