| Photo Credit: Akhilesh

Suryoday Small Finance Bank (SSFB) reported a net profit of ₹13 crore in the second quarter against a net loss of ₹1.9 crore in the year-ago period on the back of growth in net interest income (NII) and decline in provisions and contingencies.

NII was up 19.5 per cent year-on-year (y-o-y) at ₹176 crore (₹147 crore in the year-ago period). Other income declined 26 per cent y-o-y to ₹24.7 crore (₹33.4 crore). Provisions (other than tax) and contingencies declined 21.7 per cent to ₹76.1 crore (₹97.3 crore).

Net interest margin nudged up to 9.2 per cent against 9.1 per cent in the year-ago period. Gross advances rose 20.3 per cent yoy and stood at Rs 5,378.4 crore as at September-end 2022.

Deposits were up 34.5 per cent y-o-y and stood at ₹4,207 crore. The share of low-cost current account, savings account deposits in total deposits declined to 17.3 per cent against 18.5 per cent in the year-ago period.

Gross non-performing assets (NPAs) declined to 9.9 per cent of gross advances against 10.2 per cent. Net NPAs nudged up to 4.8 per cent of net advances against 4.5 per cent.

Baskar Babu R, MD & CEO, said: “…Disbursement activities are gradually gaining momentum owing to healthy on ground demand scenario. Our inclusive finance loans, where we provide microfinance loans to the country’s unbanked and underbanked contributed 64.4 per cent of the total advances book.

“In the long term the banks’ focus will be to increase the share of secured lending portfolio comprising affordable housing loans, micro business loans, business loans and commercial vehicles loans.”

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