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Suryoday Small Finance Bank’s (SSFB) net loss widened to ₹43 crore in the fourth quarter ended March 31, 2021 against ₹15.5 crore in the year ago period.
Interest reversal on account of gross non-performing assets (GNPAs) and higher one-time floating provision are among the reasons for the widening of the loss.
Net interest income of the bank, which got listed on the NSE and BSE on March 26, 2021, was down 56 per cent year-on-year at ₹57 crore (₹130 crore in the year ago period).
However, other income jumped 46 per cent yoy to ₹35 crore (₹24 crore).
R Baskar Babu, MD & CEO, said: “We had interest reversal because of GNPAs. As an abundant caution, we maintained substantially higher liquidity.
“There is a negative carry on account of this excess liquidity. And we continue to maintain conservative provisions.”
Babu emphasised that post the end of the first wave of pandemic, business activity across states started moving towards normalcy, which is reflected in the bank’s highest ever quarterly disbursement of ₹1,058 crore in the reporting quarter.
“However, with the advent of the second wave of Covid, towards the fag end of the quarter and imposition of the lockdowns across multiple states, the business activity again came to halt in a very short span of time.
“With the pause on business activity across States, we expect the collection efficiency to remain volatile in the near term,” the SSFB chief said.
With the lifting of the interim stay on asset classification standstill by the Supreme Court, GNPAs jumped to 9.4 per cent of gross advances (₹394 crore in absolute terms) as at March-end 2021 against 2.79 per cent as at March-end 2020.
Net NPAs rose to 4.70 per cent of net advances against 0.57 per cent.
The bank restructured portfolio aggregating ₹136.2 crore in the year ended 31 March 2021, representing 3.3 per cent of advances.
Deposits were up 14 per cent yoy and stood at ₹3,256 crore as at March-end 2021. Gross Loan Portfolio increased 13 per cent yoy to ₹4,206 crore.
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