12-05-2025
Suryoday Small Finance Bank Ltd (BOM:543279) Q4 2025 Earnings Call Highlights: Navigating ...
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Suryoday Small Finance Bank Ltd (BOM:543279) achieved a significant milestone with both deposits and advances crossing INR 10,000 crore.
The bank's gross advances increased by 18.5% year-on-year, reaching INR 10,251 crore.
Retail deposits now constitute 81.1% of the total deposit base, indicating strong retail franchise growth.
The bank's CASA ratio improved to 20.9% from 20.1% year-on-year.
Suryoday Small Finance Bank Ltd (BOM:543279) maintains a healthy capital position with a CRAR of 25.8%, well above regulatory requirements.
The bank's gross NPA increased to 7.2% from 2.8% in the previous year, indicating rising asset quality concerns.
Profit after tax decreased by 46.8% year-on-year, highlighting profitability challenges.
The cost of funds increased to 7.8% from 7.3%, impacting the bank's cost efficiency.
Pre-provisioning operating profit decreased by 14.3% year-on-year, reflecting operational challenges.
The bank faces significant challenges in the microfinance sector, including rising delinquencies and liquidity constraints.
Warning! GuruFocus has detected 3 Warning Signs with BOM:543279.
Q: Are you expecting to receive the CGFMU claims in FY26? A: Yes, we expect to receive about INR 360 crores of the CGFMU claims in the current financial year, which will cover our entire net NPA under the credit guarantee scheme. - CEO
Q: What is your outlook for FY26 in terms of AUM growth and NPAs? A: We are targeting an overall book growth of 30-35% and expect to grow deposits faster. We aim for a GNPA of less than 5%, NPA less than 3%, and a credit cost of 1%. - CEO
Q: Can you explain the impact of the CGFMU scheme on your NPAs? A: The CGFMU scheme covers 72.75% of the principal, and we are required to return any money collected towards principal recovery proportionately. This effectively reduces our headline GNPA numbers. - CFO
Q: How are you managing your credit costs and what is the expected impact on ROA and ROE? A: We anticipate a credit cost of 1% and expect an ROA of 1.5-1.6%, translating to an ROE of 11-12%. - CFO
Q: What are the current trends in Tamil Nadu and how are they affecting your portfolio? A: As of now, we are not seeing any significant disruptions in Tamil Nadu. Our collection efficiency is at 99.1%, and we are monitoring the situation closely. - CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
