Suryoday Small Finance Bank Limited has announced its un-audited financial results for the quarter and nine months ended 31stDecember 2023

Chennai, Feb. 2024

Business Performance  Q3 & 9M FY24

• The Bank’s gross advances stood at ₹7,600* crores as compared to ₹5,408 crores in 9M FY23, an increase of 40.5% year on year.

• Disbursements for 9M FY24 stood at ₹4,580 crores ascompared to ₹3,396 crores, an increase of 34.9% year on year.

• Disbursements for Q3 FY24 stood at ₹1,792 crores as compared to ₹1,265 crores, an increase of 41.7% year on year.

• Disbursement continues to grow, and we expectthe momentum to continue in the coming quarters.

• Vikas Loan disbursement witnessed a growth of 165%to ₹738 crore in Q3 FY24 as

compared to ₹279 crore in Q3 FY23.

• Deposits stood at ₹ 6,484 crores as compared to ₹4,697crores, an increase of 38.1% year on year.

• Share of retail deposits stood at 82.5%.

• CASA ratio stood at 18.5%, compared to 14.1% in Q3FY23 and 15.7% in Q2 FY24.

• The collection efficiency for December 2023 stood at 95.6%(1 EMI Adjusted).

• The Bank has ~26.3 lakh customers, an increase of 20.4%over the same period last year.

• The total number of banking outlets stood at 672, with99 being liability-focused outlets and 383 being asset focused branches.

• The total number of employees stood at 7,368.

Financial highlights  9M FY24

• Net interest income stood at ₹691.5 crores as compared to ₹536.5 crores, an increase of 28.9% year on year.

• Net total income stood at ₹846.1 crores as compared to ₹599.9 crores, an increase of 41% year on year.

• Cost of Funds increased to 7.3% compared to 6.6% in thesame period last year.

• Cost to income excluding CGFMU expenses stood at 56.9% as compared to 60.7% in 9M FY23. Cost to income including CGFMU expenses stood at 61.5%.

• Pre-Provisioning Operating Profit excluding CGFMUstood at ₹364.5 crores as compared to ₹235.8 crores an increase of 54.6% year on year.

• Pre-Provisioning Operating Profit including CGFMUstood at ₹325.6 crores as compared to ₹235.8 crores an increase of 38.1% year on year.

*Includes IBPC of 300 crores

Financial highlights  Q3 FY24

• Net interest income stood at ₹245.7 crores as compared to ₹183.4 crores, an increase of 33.9% year on year.

• Net total income stood at ₹297.6 crores as compared to₹209.1 crores, an increase of 42.3% year on year.

• Cost of Funds increased to 7.5% compared to 6.7% in Q3 FY23, however has remained the same on a sequential basis.

• Cost to income excluding CGFMU expenses stood at 57.3% as compared to 69.7% in Q3 FY23, including CGFMU, cost to income for the quarter stood at 61.6%.

• Pre-Provisioning Operating Profit excluding CGFMUstood at ₹127.2 crores as compared to ₹63.3 crores an increase of 101.1% year on year.

• Pre-Provisioning Operating Profit including CGFMU stood at ₹114.2 crores as compared to ₹63.3 crores, an increase of 80.5% year on year.

Asset Quality and Capital  9M FY24

• Gross NPA stood at 2.9% against 4.2% year on year.

• Net NPA stood at 1.4% versus 2.7% year on year.

• Provision coverage ratio (excluding technical write offs)stood at 54.3%.

• CRAR of the Bank stood at 27.8%; Tier I capital of 25.7% and Tier II capital of 2.1%.

Commenting on the performance, Mr. Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said: “Our performance in the first nine months of FY24 highlights our commitment of consistent growth and improvedprofitability. Gross Advances witnessed a 40.5% to ₹7,600crore in 9M FY24 against the corresponding period last year. The growth is led by an overall performance demonstrated by the bank coupled with sustainedmomentum in the microfinance sector. Vikas Loan productcontinues to gain traction with AUM crossing Rs 2,000crore. The disbursement for the bank increased from₹3,396 crore in 9M FY23 to ₹4,580 crore in 9M FY24: a growth of 34.9% on a YoY basis. The disbursement growth is led by all products especially Vikas Loan which grew 97% YoY.

The overall deposits increased from ₹4,697 crore in 9M FY23 to ₹6,484 in 9M FY24. We always focused on building a granular retail deposit book, the retail deposits including CASA as a % of overall deposits stood at 82.5% in 9M FY24 versus 77.9% during 9M FY23. Mobilization of low-cost CASA has resulted in stable cost of funds and improved deposit mix. In terms of asset quality, the GNPA stood at 2.9% at the end of 9M FY24, down from 4.2% in 9M FY23. Net NPA was 1.4% in 9M FY24 compared to 2.7% in 9M FY23. Overall Collection efficiency in themonth of December 2023 was 100.1%. We continue to focus on growth and maintaining asset quality.Furthermore, the bank will continue to build floatingprovision and CGFMU cover to mitigate any unforeseen risks.

On the profitability front, the bank’s net interest income grew by 28.9% to ₹691.5 crore during the first nine months of the fiscal year versus same period last year. The bank has demonstrated improvement across all key metrics along with stabilization in cost to income which has led to higher pre provisioning operating profit. As stated earlier,we have delivered quarterly PPOP of Rs 127.2 crore(excluding CGFMU expenses) and Rs 114.2 (including CGFMU expenses) for the quarter ended December 31, 2023 and we endeavour to continue to deliver on PPOP targets going forward. The bottom-line saw a remarkable improvement from ₹38.8 crore in 9M FY23 to ₹155.1 crore in 9M FY24.”

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