Suryoday Finance Issues Business Update for the June Quarter

Suryoday Small Finance Bank (SFB) witnessed an around 4% increase in its share price, reaching around  Rs.198 per share following the bank’s business update for the June quarter (Q1FY25).

Loans and Advances 

Suryoday SFB reported a 42% Y-o-Y increase in loans and advances, totaling Rs.9,037 crore in Q1FY25  compared to Rs.6,372 crore in Q1FY24. On a quarterly basis, this represented a 4% rise from Rs.8,650 crore in the previous quarter.

Deposit Increase

The bank’s deposits also saw a 42% Y-o-Y growth, reaching Rs.8,137 crore, up from Rs.5,722 crore in Q1FY24. Quarterly growth was 5%, with deposits rising from Rs.7,777 crore. Retail deposits increased by 48% Y-o-Y and 5% quarter-on-quarter (Q-o-Q) to Rs.6,418 crore. Similarly, bulk deposits grew 48% Y-o-Y and 4% Q-o-Q to Rs.1,719 crore.

Disbursements Surge

Suryoday SFB’s disbursements in Q1FY25 surged by 46% Y-o-Y, reaching Rs.1,740 crore, up from Rs.1,190 crore in the same quarter last year. However, this was a 26% decline from Rs.2,340 crore in the December quarter. The bank attributed the Y-o-Y growth to continued momentum in Vikas Loan and Retail Assets disbursements.

CASA Deposits and Ratio

The bank’s Current Account-Savings Account (CASA) deposits grew by 69% Y-o-Y to Rs.1,439 crore. However, this represented an 8% decline from the December quarter. The CASA ratio stood at 17.7% at the end of Q1FY25, up from 14.9% Y-o-Y but down from 20.1% Q-o-Q. The bank noted that deposit growth was primarily driven by term deposits, with limited acquisition of granular CASA deposits.

Market and Share Details

Today, Suryoday SFB’s stock was trading at Rs.196.2 per share, a 3.3% increase, against a 0.4% rise in the benchmark Nifty50 index. The stock hit a 52-week high of Rs.219 per share on May 3, 2024, and a 52-week low of Rs.142.85 on October 26, 2023. Suryoday SFB’s market capitalization stands at approximately Rs.2,077.5 crore.

Conclusion: In conclusion, Suryoday Small Finance Bank’s business update for the June quarter highlights substantial growth in loans, advances, and deposits, alongside improved asset quality and a rally in its share price  positioning it well for future growth in the competitive banking sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.