Suryoday Small Finance Bank Surges 6% on Strong Q1 Results

11 Aug 2023 , 03:15 PM

Suryoday Small Finance Bank’s shares surged by 6% intraday on August 11, bolstered by impressive Q1 results. The bank reported a remarkable six-fold increase in net profit to Rs 47.6 crore for Q1 of the current fiscal.

This growth was attributed to reduced bad loans and improved financial performance compared to the previous year’s Rs 7.8 crore profit. Total income for the first quarter surged to Rs 409 crore from Rs 295 crore in the same period last year. The bank’s net interest margin rose to 10.1% from 9.1% YoY, with net interest income at Rs 225 crore compared to Rs 177 crore.

Gross non-performing assets (NPA) as a ratio of total advances declined to 3.04% from 10.3% YoY in the April-June quarter. Net NPA also decreased to 1.63% from 5.02% in the same period, while the capital adequacy ratio dropped to 32.65% from 36.37%.

As per data, Suryoday Small Finance Bank’s market capitalization stands at Rs 1,990 crore, with a majority public ownership of 56.34% and promoters holding 23.3%.

Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs) own the remaining stakes, with 18.67% and 1.68% respectively. The bank’s stock performed exceptionally well, yielding a 75.82% return over the last six months, outshining the Nifty Bank index’s 7.90% return during the same period.

 

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