Suryoday Small Finance Bank (SSFB) reported a turnaround performance, registering a net profit of ₹7.75 crore on robust growth in the net interest income and decline in provisions and contingencies.
The bank had reported a net loss in the preceding quarter (₹48.12 crore) and the year ago quarter (₹47.72 crore).
The net interest income (difference between interest earned and interest expended) was up 43 per cent year-on-year (YoY) at ₹177 crore (₹123 crore in the year ago quarter).
Other income, including processing fees, income on dealing in priority sector lending certificates, profit/loss on the sale of investments, was down 40 per cent at ₹13 crore (₹22 crore). This includes a mark-to-market loss of ₹36 crore on the treasury portfolio.
Provisions and contingencies declined 37.5 per cent YoY to ₹69 crore (₹111 crore).
As at June-end 2022, the gross non-performing assets (NPAs) declined to 10.03 per cent against 11.8 per cent as at March-end 2022. The net NPAs, too, declined to 5.02 per cent against 5.97 per cent.
The bank’s gross advances stood at ₹5,132.2 crore, an increase of 28.2 per cent over the same period last year. Disbursements stood at ₹1,012.2 crore, an increase of 180.4 per cent over the same period last year.
Deposits stood at ₹4,020.1 crore, an increase of 21.2 per fcent over the same period last year.
The net interest margin increased to 9.1 per cent in the reporting quarter against 7.6 per cent in the year ago quarter.
R Baskar Babu, MD & CEO, said: “The bank has demonstrated resilience despite challenges the sector has experienced in the past couple of years due to Covid-19 pandemic.
“...We have been focusing on expanding our retail granular deposit franchise, and as a percentage of total deposits, these deposits contributed to 78.8 per cent in Q1FY23.”
Referring to 28.2 per cent YoY advances growth, he said this indicates positive on-ground growth momentum.