Suryoday Small Finance Bank (SSFB) reported a 28 per cent increase in FY20 net profit at Rs 111 crore against Rs 87 crore in FY19.
A break-up of the Bank’s results shows that 77 per cent of the net profit (or Rs 85 crore) came in the first half in FY21 vis-a-vis 45 per cent (or Rs 39 crore) in the year ago period.
Net interest income (difference between interest earned and interest expended) was up 45 per cent in FY21 at Rs 491 crore against Rs 339 crore in FY20. Other income rose 30 per cent to Rs 87 crore against Rs 67 crore.
Provisions and contingencies, including floating provisions and provisions towards overdue standard accounts, jumped 55 per cent to Rs 195 crore (Rs 126 crore).
Gross non-performing assets (GNPAs) increased to 2.79 per cent as at March-end 2020 against 1.81 per cent as at March-end 2019. Net non-performing assets (NNPAs) increased to 0.57 per cent as at March-end 2020 against 0.44 per cent as at March-end 2019.
Capital adequacy ratio declined to 29.57 per cent as at March-end 2020 against 35.03 per cent as at March-end 2019.
Ups COVID-19 related provisions
As per its notes to accounts, SSFB increased floating provision on micro finance loans (joint liability group) classified as standard asset by 0.5 per cent in the half year (H2) ended March 31, 2020 in view of the heightened uncertainty due to COVID-19 pandemic.
“Accordingly, the Bank carries floating provision of 2 per cent on standard micro finance loans amounting to Rs 53.22 crore. The provision made is over and above the minimum regulatory requirement for standard assets and NPA (non-performing asset) provisioning by the Reserve Bank of India (RBI). The floating provision is netted-off from advances,” as per the notes.
The Bank said it has made provision of 10 per cent, amounting to Rs 10.87 crore (March 31, 2019: Nil) on overdue standard accounts as on February 29, 2020 following RBI guidelines relating to COVID- 19 Regulatory package issued on April 17, 2020 and clarification provided by RBI to the Indian Banks’ Association.
SSFB holds provisions of Rs 55.12 crores, other than provision on overdue standard accounts as at February 29, 2020 against the potential impact of Covid-19 based on the information available at this point in time. The provisions held by the Bank are in excess of the RBl prescribed norms, according to the notes.
Deposits and Advances
Deposits jumped 79 per cent to Rs 2849 crore as at March-end 2020 against Rs 1,593 crore as at March-end 2019. Advances increased 32 per cent to Rs 3532 crore as at March-end 2020 against Rs 2680 crore as at March-end 2019.
“Disbursement has been sluggish during the lockdown period. The Bank continues to grow its deposits,” the Bank said.