Suryoday Small Finance Bank’s first quarter net profit soared 514 per cent year-on-year to ₹47.6 crore against ₹7.8 crore in the year ago period on the back of robust growth in other income, healthy growth in net interest income and decline in provisions and contingencies.
SSFB’s net interest income was up 27 per cent y-o-y to ₹225 crore (₹177 crore in the year ago quarter). Other income shot up 288 per cent y-o-y to ₹51 crore (₹13.2 crore). Provisions and contingencies declined 22.6 per cent y-o-y to ₹53.7 crore (₹69.3 crore).
Gross advances increased by 24.2 per cent y-o-y to ₹6,372 crore (₹5,132 crore). Deposits rose by 42.3 per cent y-o-y to ₹5,722 crore (₹4,020 crore). Low cost CASA deposits declined to 14.9 per cent of overall deposits from 21 per cent a year ago. SuryNet interest margin improved to 7.1 per cent from 6.5 per cent.
Gross non-performing assets (GNPA) declined to 3 per cent of gross advances from 10 per cent a year ago. Net NPAs too declined to 1.6 per cent of net advances from 5 per cent a year ago.
R Baskar Babu, MD and CEO, said “The bank is confident of gradually reducing GNPA to less than 2 per cent on the back of sustained collection momentum coupled with business growth. The bank intends to create enough contingency provision to improve the PCR as well as to bring down NNPA below 0.5 per cent in FY24. Despite one time ARC related provision, the bank has witnessed a growth of 5x Profit After Tax.”
Looking ahead to FY24, the bank aims to focus on growing gross advances by about 30 per cent and deposits by about 35 per cent, he added.