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* Net interest income stood at ?445.8 crores as compared to ?353.1 crores, an increase of 26.2% year on year

* Net total income stood at ?548.5 crores as compared to ?390.8 crores, an increase of 40.4% year on year

* Cost of Funds increased to 7.2% compared to 6.6% in H1 FY23

* Cost to income stood at 56.7% as compared to 55.9% in H1 FY23, including CGFMU, Cost to income stood at 61.5%

* Pre-Provisioning Operating Profit stood at ?211.4 crores as compared to ?172.5 crores an increase of 22.6% year on year

Commenting on the performance, Mr. Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said: "We are pleased to report that the bank has registered a 28.7% growth in advances to ?6,921 crore in H1FY24 against the corresponding period last year. The growth is led by an all-round performance demonstrated by the bank coupled with sustained momentum in the microfinance sector. The small ticket loans within the overall MFI industry has witnessed resilience in terms of growth and asset quality. The disbursement for the bank increased from ?2,130 crore in H1FY23 to ?2,787 crore in H1FY24; a growth of 30.8% on a YoY basis. The disbursement growth is led by our Vikas Loan and commercial vehicle portfolio which continues to be our North Star by reporting a 139% and 262% YoY growth respectively.

The overall deposits surged from ?4,207 crore in H1FY23 to ?6,388 in H1FY24. We firmly believe in our ethos of building a granular retail deposit book, the retail deposits as a % of overall deposits is at 77.6% in H1FY24 versus 71.9% during H1FY23. CASA acquisition momentum outpaced deposit mobilisation in Q2 FY24. In terms of asset quality, the GNPA stood at 2.9% at the end of H1FY24, down from 9.9% in H1FY23. Net NPA was 1.4% in H1FY24 compared to 4.8% in H1FY23. Overall Collection efficiency in the month of September 2023 was 101.7%. We continue to focus on growth and maintaining asset quality. Furthermore, the bank will continue to build floating provision and CGFMU cover to mitigate any unforeseen risks.             

On the profitability front, while the bank’s net interest income grew by 26.2% to ?445.8 crore during the first half of the fiscal year versus same period last year. The rise in cost of deposits especially during Q2FY24 marginally impacted the profitability. During the quarter gone by, the bank has invested in expanding the branch network coupled with hiring feet on street; the leverage of which will accrue in the coming quarters. However, the bottom-line saw a remarkable improvement from ?20.8 crore in H1FY23 to ?97.9 crores in H1FY24.”

Business Highlights Q2 & H1 FY24

The Bank's gross advances stood at ?6,921* crores as compared to ?5,378 crores in H1 FY23, an increase of 28.7% year on year

Disbursements for H1 FY24 stood at ?2,787 crores as compared to ?2,130 crores, an increase of 30.8% year on year.

Disbursements for Q2 FY24 stood at ?1,598 crores as compared to ?1,118 crores, an increase of 42.9% year on year

Disbursement activities are gradually gaining momentum owing to healthy on ground demand, we expect it to continue in the coming quarters.

Vikas Loan disbursement grew substantially by 171% to ?577 crore in Q2FY24 as compared to ?213 crore in Q1FY24

Deposits stood at ? 6,388 crores as compared to ?4,207 crores, an increase of 51.9% year on year

Share of retail deposits stood at 77.6%

CASA ratio stood at 15.7%, compared to 17.3% year on year and 14.9% sequentially

Overall collection efficiency for the month of September 2023 stood at 101.7%

The Bank has ~25.1 lakh customers, an increase of 20% over the same period last year

Total number of banking outlets stood at 635, with 96 being liability-focused outlets and 350 being asset focused branches

Total number of employees stood at 6,989

Financial highlights – Q2FY24

Net interest income stood at ?221.0 crores as compared to ?175.9 crores, an increase of 25.6% year on year

Net total income stood at ?272.8 crores as compared to ?200.6 crores, an increase of 36.0% year on year

Cost of Funds increased to 7.5% compared to 6.7% in Q2 FY23

Cost to income stood at 59.7% as compared to 53.5% in Q2 FY23, including CGFMU, cost to income stood at 65.4%. The rise in cost is due to increase in employee cost, expansion and CGFMU.

Pre-Provisioning Operating Profit stood at ?94.3 crores as compared to ?93.1 crores an increase of 1.3% year on year

Financial highlights – H1 FY24

Net interest income stood at ?445.8 crores as compared to ?353.1 crores, an increase of 26.2% year on year

Net total income stood at ?548.5 crores as compared to ?390.8 crores, an increase of 40.4% year on year

Cost of Funds increased to 7.2% compared to 6.6% in H1 FY23

Cost to income stood at 56.7% as compared to 55.9% in H1 FY23, including CGFMU, Cost to income stood at 61.5%

Pre-Provisioning Operating Profit stood at ?211.4 crores as compared to ?172.5 crores an increase of 22.6% year on

Asset Quality and Capital – H1 FY24

Gross NPA stood at 2.90% against 9.9% YoY

Net NPA stood at 1.40% versus 4.8% YoY

Provision coverage ratio (excluding technical write offs) stood at 50.5%.

CRAR of the Bank stood at 30.2%; Tier I capital of 28.0% and Tier II capital of 2.2%

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