Our Bureau

Mumbai, Feb 03

Suryoday Small Finance Bank (SSFB) reported a 354 per cent jump in third quarter net profit at Rs 4.72 crore against Rs 1.04 crore in the year ago period on the back of robust growth in net interest income (NII).

This was a turnaround quarter for SSFB as in the preceding quarter it had posted a net loss of Rs 1.92 crore.

NII (difference between interest earned and interest expended) was up 53 per cent to Rs 167.31 crore (Rs 109.63 crore in the year ago quarter).

However, other income, comprising processing fees, profit/loss on sale of investments,income on dealing in priority sector lending certificates, among others, was down 41 per cent to Rs 18.17 crore (Rs 30.89 crore).

Provisions and Contingencies jumped 55.31 per cent to Rs 72.61 crore (Rs 46.75 crore).

Gross non-performing asset (GNPAs) rose to 10.48 per cent of gross advances as at December-end 2021 against 10.21 per cent as at September-end 2021.

Net non-performing asset (GNPAs) increased to 5.57 per cent of net advances as at December-end 2021 against 4.48 per cent as at September-end 2021.

As per the Bank’s presentation portfolio at risk (PAR: loans overdue for 90 plus days) as on December 31, 2021 stood at 4.6 per cent. Total standard restructured pool was at 11.9 per cent of advances as at December 31, 2021.

The Bank said, in December 2021, overall collection efficiency was 109 per cent, compared to 108 per cent in September 2021. The collection efficiency in the restructured book stood at 65 per cent.

Out of ₹ 769.9 crore of restructured advances, ₹ 190 crore has been provided for, per the presentation.

As of December 31, 2021, gross advances increased by 25 per cent year on year to ₹4,872.3 crore (Rs 3,908 crore).

Baskar Babu R, MD & CEO, said “While H1 (first half) FY22 was majorly a difficult period for the industry, we saw a considerably faster recovery in Q3 (October-December) FY22.

“Our disbursement of ₹1,121 crore in Q3FY22, compared to ₹1,067 crore in Q2 (July-September) FY22 and ₹785.3 crore in Q3FY21, indicates that our performance on the ground has improved.”.

The main focus is on retaining quality micro finance clients and increasing the affordable housing portfolio and secured business loans portfolio, according to the presentation. 

Deposits declined by 5.21 per cent to Rs 3169.58 (Rs 3343.84 crore). According to SSFB, granular retail deposits increased to 88.4 per cent of total deposits as on December 31, 2021 from 70.5 per cent as on December 31, 2020.