Suryoday Small Finance Bank Q2 net profit falls 33% on lower NII; deposits surge 36%

Suryoday Small Finance Bank Ltd on Thursday (November 6) reported a 32.9% year-on-year decline in net profit to ₹30.4 crore for the quarter ended September 2025, compared with ₹45 crore in the same period last year. Net interest income fell 13.9% to ₹258.2 crore from ₹300 crore in Q2 FY25.

Net interest income (NII) fell 13.9% year-on-year to ₹258.2 crore, compared with ₹300 crore in the corresponding quarter of the previous year. Gross non-performing assets (NPA) declined to 5.93% from 8.46% in the previous quarter, while net NPA stood at 3.80%, compared with 5.64% in the preceding quarter.

The bank reported gross advances of ₹11,124 crore as of September 2025, up 18.9% year-on-year from ₹9,360 crore in September 2024. Disbursements during the quarter stood at ₹2,430 crore, rising 44.5% from ₹1,682 crore in Q2 FY25.

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Excluding supply chain finance (SCF), disbursements were ₹2,053 crore, up 26.3% from ₹1,626 crore in the same period last year. Deposits grew 35.5% year-on-year to ₹11,991 crore as of September 2025, compared with ₹8,851 crore a year ago. The IF Current Bucket Collection Efficiency stood at 98.6%, while the Collection Efficiency (1 EMI adjusted) declined to 86% in Q2 FY26 from 93.1% in Q2 FY25.

For Q2 FY26, total income decreased 2.7% year-on-year to ₹338 crore from ₹347 crore. Pre-provision operating profit (PPOP) fell 37.6% to ₹79 crore from ₹127 crore a year earlier. The bank’s cost of funds stood at 7.7%, slightly higher than 7.6% in Q2 FY25, while the cost-to-income ratio increased to 76.6% from 63.5%.

In the first half of FY26, gross advances stood at ₹11,124 crore compared with ₹9,360 crore in H1 FY25, an 18.9% increase. Disbursements during H1 FY26 rose 37.1% year-on-year to ₹4,691 crore from ₹3,421 crore, driven by strong traction in Vikas Loans, wheels, and mortgage segments.

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Vikas Loan disbursements nearly doubled to ₹1,777 crore from ₹942 crore in H1 FY25, up 88.8%. Deposits increased 35.5% year-on-year to ₹11,991 crore, while the share of retail deposits improved to 86% from 80.2%. The CASA ratio stood at 20.7% as of September 2025, compared with 17.9% a year ago. The bank’s customer base grew 12.1% to around 36 lakh, from 32 lakh in September 2024.

For H1 FY26, total income declined 2.4% to ₹694 crore from ₹711 crore, while net interest income (NII) dropped 14.8% to ₹505 crore from ₹593 crore. PPOP decreased 30.7% to ₹188 crore from ₹271 crore in the same period last year. The cost of funds increased marginally to 7.8% from 7.6%, and the cost-to-income ratio rose to 72.9% from 61.8%. Profit after tax fell 43.1% year-on-year to ₹66 crore from ₹115 crore.

Gross non-performing assets (NPA) rose sharply to 5.9% as of September 2025 from 2.9% a year ago, while net NPA increased to 3.8% from 0.8%. The bank maintained a healthy capital position, with a capital adequacy ratio (CRAR) of 23.4%, including Tier I capital of 22.4% and Tier II capital of 1%.

Shares of Suryoday Small Finance Bank Ltd ended at ₹149.60, down by ₹2.60, or 1.71%, on the BSE.

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