Suryoday Small Finance Bank Limited (SURYODAY)
₹147.97 +0.14% last close, 16 Oct
Q2 FY27 results
📅 Next results: 29 Oct 2026 (board meeting)Suryoday Small Finance Bank Limited's board meets on 29 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Suryoday Small's net interest income was ₹316 Cr (+27.8% year on year, -0.4% on the previous quarter), and net profit ₹75.2 Cr (+114.8% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹316 | +27.8% | -0.4% |
| Operating profit | ₹139 | — | — |
| Net profit | ₹75.2 | +114.8% | +50.4% |
| EPS (₹) | 7.07 | +113.0% | +51.1% |
| Gross NPA | 6.60% | — | — |
SURYODAY delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 52.22% of the SURYODAY shares traded on NSE were taken to delivery, against the stock's own 20-session average of 51.65%. That is close to its usual level. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 46.8% · 43.5% · 47.8% · 49.2% · 52.2%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Suryoday Small Finance Bank has received regulatory approval from the Reserve Bank of India (RBI) via letter dated October 14, 2026, under Section 35B of the Banking Regulation Act, 1949. The approval covers the payment of variable pay for FY 2025-26 and fixed remuneration for FY 2026-27 for MD & CEO Baskar Babu Ramachandran and Whole-time Director Hemant Shah. This follows earlier shareholder approval at the bank's 18th AGM held on August 06, 2026. The filing does not disclose the specific monetary value of the approved remuneration.
- RBI approval granted via letter dated October 14, 2026 under Section 35B of the Banking Regulation Act, 1949
- Covers variable pay for FY 2025-26 and fixed remuneration for FY 2026-27
- Applies to MD & CEO Baskar Babu Ramachandran and Whole-time Director Hemant Shah
- Follows shareholder approval at the 18th AGM on August 06, 2026
- Exact remuneration amounts are not disclosed in the announcement
Suryoday Small Finance Bank has approved the allotment of 200 Basel II compliant Lower Tier II Non-Convertible Debentures (NCDs) aggregating to Rs 200 crore on a private placement basis. The unsecured debentures carry a fixed coupon rate of 10.05% per annum, payable semi-annually, with a 10-year maturity ending on October 09, 2036. The fundraise represents approximately 9.6% of the bank's net worth (Rs 2,078 crore) and will augment its capital adequacy to support loan book expansion. The NCDs are proposed to be listed on BSE Limited.
- Allotted 200 Lower Tier II NCDs of face value Rs 1 crore each, aggregating to Rs 200 crore
- Fixed coupon rate set at 10.05% per annum, payable semi-annually
- Tenure of 10 years, with allotment on October 09, 2026, and maturity on October 09, 2036
- Instrument is unsecured, redeemable, fully paid-up, and proposed to be listed on BSE Limited
Suryoday Small Finance Bank released provisional business updates for Q2FY27, showing strong loan and deposit expansion. Gross advances grew 34.6% YoY to ₹14,972 crore, even after absorbing a ₹591 crore write-off. Total deposits grew 35.0% YoY to ₹16,184 crore, though CASA ratio moderated to 19.4% from 21.0% in Q1FY27. Notably, headline GNPA fell sharply to 2.9% from 6.5% QoQ (and 9.3% in Q2FY26), driven in part by the write-offs and portfolio improvements.
- Gross advances rose 34.6% YoY to ₹14,972 crore (up 4.2% QoQ) after factoring in ₹591 crore of write-offs
- Total deposits increased 35.0% YoY to ₹16,184 crore, with retail deposits reaching ₹13,670 crore
- Quarterly disbursements grew 27.4% YoY to ₹3,095 crore
- Gross NPA declined significantly to 2.9% compared to 6.5% in Q1FY27 and 9.3% in Q2FY26
- GNPA stood at ₹438.31 crore with provisions of ₹135.77 crore and ₹180.00 crore claimable under CGFMU
Suryoday Small Finance Bank has approved the appointment of Mr. Alok Pathak as Chief Risk Officer (CRO) for a 3-year term from October 1, 2026, to September 30, 2029. Mr. Pathak brings over 26 years of experience across the banking sector, including more than 8 years as a CRO. Concurrently, previous CRO Mr. Yogesh Dixit, who served in the role since 2017, has been redesignated as Head – Governance Projects.
- Appointment of Mr. Alok Pathak as Chief Risk Officer for a term of 3 years effective October 1, 2026
- Mr. Pathak brings 26+ years of banking experience, including 8+ years as CRO
- Mr. Yogesh Dixit redesignated to Head – Governance Projects after serving as CRO since 2017 (associated since 2015)
Suryoday Small Finance Bank has reported leadership changes across credit, operations, and digital banking. Ms. Radhika Gawde, current Chief Credit Officer, is re-designated as Head - Operations effective October 01, 2026, while Ms. Sweety Jain will take over as Chief Credit Officer on the same date. Concurrently, Mr. Vishal Singh, Chief Information Officer and Head - Digital Banking, has resigned to pursue entrepreneurship, with his last working day set for October 03, 2026.
- Ms. Radhika Gawde re-designated as Head - Operations effective October 01, 2026
- Ms. Sweety Jain appointed as Chief Credit Officer effective October 01, 2026
- Mr. Vishal Singh resigned as CIO and Head - Digital Banking, effective close of business October 03, 2026
- Both incoming leaders bring over 20 years of individual professional experience across banking and credit
Suryoday Small Finance Bank has reported leadership changes across credit, operations, and digital banking. Ms. Radhika Gawde, current Chief Credit Officer, is re-designated as Head - Operations effective October 01, 2026, while Ms. Sweety Jain will take over as Chief Credit Officer on the same date. Concurrently, Mr. Vishal Singh, Chief Information Officer and Head - Digital Banking, has resigned to pursue entrepreneurship, with his last working day set for October 03, 2026.
- Ms. Radhika Gawde re-designated as Head - Operations effective October 01, 2026
- Ms. Sweety Jain appointed as Chief Credit Officer effective October 01, 2026
- Mr. Vishal Singh resigned as CIO and Head - Digital Banking, effective close of business October 03, 2026
- Both incoming leaders bring over 20 years of individual professional experience across banking and credit
Suryoday Small Finance Bank has approved raising capital via rated, listed, unsecured, subordinated Lower Tier II Non-Convertible Debentures (NCDs) up to ₹400 crore in one or more tranches. The board specifically approved an immediate tranche of up to ₹200 crore on a private placement basis with a tenure of up to 10 years, proposed to be listed on BSE. Relative to the bank's net worth of ₹2,078 crore, the ₹400 crore facility represents ~19.2% (or ~9.6% for the immediate ₹200 crore tranche), which will shore up Tier II capital adequacy. Additionally, Ms. Geeta Krishnan was appointed as Interim Company Secretary and Compliance Officer effective September 24, 2026.
- Board approved issuance of Lower Tier II NCDs up to ₹400 crore in one or more tranches
- Specific approval granted for a single tranche of up to ₹200 crore on private placement
- Tenure approved for not exceeding 10 years from the deemed date of allotment
- Geeta Krishnan appointed as Interim Company Secretary and Compliance Officer effective September 24, 2026
Suryoday Small Finance Bank announced that its Nomination and Remuneration Committee approved the grant of 1,59,672 Employee Stock Options on September 09, 2026. The options carry an exercise price of Rs 195.53 per share, with each option convertible into one equity share of face value Rs 10. The grant was executed under the Suryoday ESOP Scheme - 2019 in line with SEBI regulations. This represents a routine employee incentive measure with negligible equity dilution.
- Grant of 1,59,672 Employee Stock Options approved on September 09, 2026
- Grant/exercise price fixed at Rs 195.53 per share
- Each option confers the right to apply for 1 equity share of face value Rs 10
- Issued under the Suryoday ESOP Scheme - 2019
Suryoday Small Finance Bank has allotted 6,825 equity shares of Rs. 10 each to eligible employees following the exercise of stock options. This allotment, made on August 13, 2026, is part of the Suryoday ESOP Scheme 2019. The total paid-up equity share capital has increased marginally from Rs. 106.29 crore to Rs. 106.30 crore. The resulting equity dilution is negligible at approximately 0.006% of the pre-allotment capital.
- Allotment of 6,825 equity shares of face value Rs. 10 each on August 13, 2026
- Paid-up equity capital increased from Rs. 106,28,98,240 to Rs. 106,29,66,490
- Total number of equity shares increased to 10,62,96,649 from 10,62,89,824
- Shares issued under the Suryoday ESOP Scheme 2019 will rank pari-passu with existing shares
- The bank will apply for listing of these new shares on NSE and BSE in due course
Suryoday Small Finance Bank has announced the retirement of Mr. John Arunkumar Diaz, a Non-Executive Independent Director, effective August 09, 2026, upon reaching the regulatory age limit of 75 years. Simultaneously, Mr. Krishna Kant Chaturvedi has resigned from his position as Company Secretary, Compliance Officer, and Key Managerial Personnel (KMP) effective August 11, 2026, to pursue external opportunities. These changes follow a fiscal year (FY26) where the bank reported a net profit of ₹152 Cr on a revenue of ₹2,521 Cr. The transitions appear procedural and are unlikely to impact the bank's core operations or its strategy to diversify into secured retail assets.
- Mr. John Arunkumar Diaz retired as Independent Director on August 09, 2026, after completing his second term.
- Retirement was mandated by the Banking Regulation Act, 1949, as the director attained 75 years of age.
- Mr. Krishna Kant Chaturvedi will cease to be the Company Secretary and KMP effective August 11, 2026.
- The bank maintains a granular portfolio with 36 lakh unique customers and a TTM PAT of ₹152 Cr.
- Promoter holding remained stable at 22.48% as of June 2026.
Suryoday Small Finance Bank shareholders have approved a total capital raise of ₹500 Crore, consisting of ₹300 Crore in Tier-1 capital (Equity/QIP/Rights) and ₹200 Crore in Tier-2 debt instruments. A final dividend of ₹1.50 per share (15% of face value) for FY26 was also ratified. All nine resolutions, including the re-appointment of directors and executive remuneration for FY27, passed with the requisite majority. The ₹300 Crore Tier-1 raise is significant, representing approximately 17.4% of the bank's current market capitalization.
- Approved raising Tier-1 capital up to ₹300 Crore via QIP, Rights Issue, or Private Placement.
- Approved issuance of Tier-2 debt instruments, including NCDs and Bonds, up to ₹200 Crore.
- Confirmed final dividend of ₹1.50 per equity share for the financial year ended March 31, 2026.
- Total number of shareholders on the record date of July 30, 2026, was 92,034.
- Resolution for MD & CEO remuneration for FY27 passed with 99.97% of valid votes in favor.
Suryoday Small Finance Bank shareholders have approved a significant capital raising plan of up to ₹500 crore, comprising ₹300 crore in Tier-1 capital and ₹200 crore in Tier-2 debt instruments. The Tier-1 fundraise represents approximately 17.3% of the bank's current market capitalization, providing a substantial buffer for its 15-20% growth target. Additionally, a final dividend of ₹1.50 per share (15% of face value) for FY26 was cleared. Key management remuneration for FY27 and the re-appointment of directors were also finalized during the 18th AGM.
- Approved raising Tier-1 capital up to ₹300 crore through QIP, Rights Issue, or Private Placement.
- Authorized issuance of Tier-2 debt instruments (Bonds/NCDs) for an amount up to ₹200 crore.
- Confirmed final dividend of ₹1.50 per equity share for the financial year ended March 31, 2026.
- Re-appointed Mr. Ranjit Jayant Shah as Director and Mr. Krishna Prasad Nair as Non-Executive Chairman.
- Amendments to the Suryoday ESOP Scheme 2019 were passed, though 19.6% of public non-institutional votes were against it.
Shareholders of Suryoday Small Finance Bank have approved a total capital raise of up to ₹500 Crore, comprising ₹300 Crore in Tier-1 equity and ₹200 Crore in Tier-2 debt. The ₹300 Crore equity raise represents approximately 17.3% of the bank's current market capitalization of ₹1729 Crore. Additionally, a final dividend of ₹1.50 per share (15% of face value) for FY26 was ratified. All nine resolutions, including executive remuneration and director re-appointments, were passed with the requisite majority.
- Approved raising up to ₹300 Crore Tier-1 capital via QIP, Rights Issue, or Preferential Allotment
- Approved issuance of Tier-2 debt instruments like Bonds or NCDs up to ₹200 Crore
- Final dividend of ₹1.50 per equity share confirmed for the financial year ended March 31, 2026
- Re-appointment of Mr. Ranjit Jayant Shah as Non-Executive Director approved until November 01, 2026
- Amendments to Suryoday ESOP Scheme 2019 passed, despite 19.6% of non-institutional public votes being cast against it
Mr. Baskar Babu Ramachandran (MD & CEO and Promoter) and Mrs. Shilpa Bhaskar Babu (Promoter Group) have filed a trading plan to purchase equity shares worth Rs 75 lakh each, totaling Rs 1.5 crore. The purchases are scheduled to take place between November 30, 2026, and December 04, 2026. This follows the mandatory 120-day cool-off period required under SEBI Insider Trading regulations. While the total value is small at approximately 0.09% of the bank's Rs 1,720 crore market capitalization, it signals management confidence at a time when the stock trades at a P/B of 0.8.
- Total planned purchase value of Rs 1.5 crore by the MD & CEO and a promoter group member
- Execution window set for a 5-day period from November 30, 2026, to December 04, 2026
- Mandatory 120-day cool-off period observed from the approval date of July 30, 2026
- Promoter holding as of June 2026 remains stable at 22.48%
- Bank currently maintains a high yield of 18.8% with a focus on diversifying into secured retail assets
Suryoday Small Finance Bank reported a 32.5% YoY growth in gross advances to Rs 14,376 Cr for Q1 FY27. A major highlight is the receipt of Rs 387 Cr in CGFMU claims during the quarter, which significantly bolstered the provision coverage and brought adjusted Net NPA down to 0.3%. Management has provided a confident PAT guidance of over Rs 300 Cr for FY27, aiming for a quarterly run rate of approximately Rs 75 Cr. Despite a potential subdued Q2 due to lower PSL income, the bank maintains a 30-35% growth outlook for its secured retail segments.
- Received Rs 387 Cr in CGFMU claims in Q1 FY27, with another Rs 135-150 Cr eligible for future claims
- Gross advances grew 32.5% YoY to Rs 14,376 Cr, while deposits grew 29.4% to Rs 14,634 Cr
- Management guided for a FY27 PAT of Rs 300 Cr+, nearly double the TTM PAT of Rs 152 Cr
- Adjusted Net NPA stands at a low 0.3% after accounting for CGFMU receivables
- Retail deposits now constitute 87.3% of the total deposit base, enhancing liability granularity
Financial Performance
Revenue Growth by Segment
Interest earned grew by 23.0% YoY to INR 1,953.7 Cr in FY25 from INR 1,588.7 Cr in FY24. The growth was driven by a 23.5% increase in net advances to INR 9,974.3 Cr. The microfinance segment's share of the portfolio decreased to 53% as of December 2024 from 59% in March 2024, while non-microfinance segments like commercial vehicles and MSME loans are scaling up to diversify revenue streams.
Geographic Revenue Split
The bank operates across 16 states and Union Territories as of September 2024. While specific revenue percentages per state are not disclosed, the bank caters to 36 lakh unique customers through 712 branches, focusing on urban and semi-urban areas for its micro-loan and retail deposit operations.
Profitability Margins
Profitability faced significant pressure with Profit After Tax (PAT) declining 46.8% YoY to INR 115.0 Cr in FY25. Yield on advances decreased to 18.8% in FY25 from 20.2% in FY24. Return on Average Total Assets (ROA) declined to 1.5% in 9M FY25 from 1.9% in FY24 due to higher slippages and increased operating expenses.
EBITDA Margin
Operating Profit after CGFMU expenses stood at INR 389.2 Cr in FY25, a decline of 14.3% YoY from INR 453.9 Cr. This was impacted by a 27.6% increase in operating expenses to INR 861.6 Cr, primarily driven by a 23.1% rise in employee expenses and a 38.0% increase in CGFMU guarantee premiums.
Capital Expenditure
The bank maintained a strong capitalization profile with a Capital Adequacy Ratio (CAR) of 24.95% as of September 2024 and 26.9% as of December 2024, well above the 15% regulatory requirement. Net worth stood at INR 1,925 Cr as of September 2024, supported by the last major equity raise of approximately INR 522 Cr in FY21.
Credit Rating & Borrowing
ICRA reaffirmed the rating for the INR 100 Cr Subordinated debt programme at [ICRA]A (Stable) and the INR 130 Cr Certificate of Deposit programme at [ICRA]A1+. Borrowing costs are approximately 8%, with total borrowings standing at INR 2,710 Cr, forming 17% of total liabilities as of March 2025.
Operational Drivers
Raw Materials
As a financial institution, the primary 'raw material' is the Cost of Funds, which is approximately 8%. Interest expensed rose 35.3% YoY to INR 847.6 Cr in FY25 as the bank scaled its deposit base.
Import Sources
Not applicable for banking operations; funding is sourced domestically through retail deposits and institutional borrowings within India.
Key Suppliers
Not applicable; however, the bank utilizes systemic liquidity facilities from the Reserve Bank of India (RBI) and funding lines from other Financial Institutions (FIs).
Capacity Expansion
Current infrastructure includes 712 branches as of September 2024. The bank is expanding its secured loan portfolio, targeting an asset base of INR 5,000 Cr each for mortgages and commercial vehicles to achieve better economies of scale.
Raw Material Costs
Interest expenses represent 43.4% of total interest earned. The bank is focusing on increasing its CASA ratio, which stood at 17.9% to 19.5% in FY25, to lower the overall cost of deposits and improve margins.
Manufacturing Efficiency
Operational efficiency is measured by the cost-to-income ratio; operating expenses grew faster (27.6%) than net total income (12.0%) in FY25, indicating a temporary decline in efficiency due to expansion and credit guarantee costs.
Logistics & Distribution
Distribution is handled through its 712 branches; the bank is focusing on digital analytics and a strengthened collections team to improve the efficiency of loan disbursements and recoveries.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
The bank aims to achieve this growth by diversifying its portfolio toward a 50-50 mix between microfinance and secured retail assets (Commercial Vehicles, MSME, and Housing loans). It plans to leverage its 'scheduled' bank status to garner more retail deposits and utilize CGFMU cover to protect the micro-banking segment while scaling long-tenor annuity products.
Products & Services
Micro banking (JLG) loans, Commercial Vehicle loans, MSME loans, Affordable Housing loans, Financial Intermediary Group loans, Savings Accounts, and Fixed Deposits.
Brand Portfolio
Suryoday Small Finance Bank.
New Products/Services
Scaling of relatively newer products such as Commercial Vehicles, MSME loans, and Housing loans is expected to eventually contribute to 50% of the total AUM, providing more stable, secured revenue streams.
Market Expansion
The bank is deepening its presence in its existing 16 states/UTs, focusing on transitioning from a micro-lender to a diversified retail bank.
Market Share & Ranking
Not specifically ranked, but it is a prominent Small Finance Bank that transitioned from a microfinance institution in 2017.
Strategic Alliances
The bank received RBI approval for 1729 Capital and its associates to hold a 7.14% aggregate stake, indicating institutional investor support.
External Factors
Industry Trends
The Small Finance Bank industry is shifting toward 'secured' lending to mitigate the volatility of unsecured microfinance. Suryoday is following this trend by reducing its microfinance concentration from 67% in FY22 to 53% in FY25.
Competitive Landscape
Competes with other SFBs, NBFC-MFIs, and private sector banks in the micro-banking and MSME lending space.
Competitive Moat
The bank's moat is built on its 'scheduled commercial bank' status, which provides access to low-cost systemic liquidity, and a strong retail deposit franchise where 80% of deposits are from retail sources.
Macro Economic Sensitivity
Highly sensitive to rural economic health and inflation, as these directly impact the repayment capacity of microfinance borrowers. Adverse climate events also disrupt the cash flows of the JLG customer base.
Consumer Behavior
Increasing credit awareness and demand for formal credit in semi-urban areas are driving the growth of the bank's MSME and housing loan segments.
Geopolitical Risks
Minimal direct impact; however, global inflationary pressures can influence domestic interest rates and the bank's cost of funds.
Regulatory & Governance
Industry Regulations
Subject to RBI's Master Directions on Acquisition and Holding of Shares (Jan 2023) and maintaining a minimum CAR of 15%. It must also comply with the Banking Regulation Act, 1949.
Environmental Compliance
The bank encounters indirect environmental risks through its asset portfolio; it contributes to financial inclusion for marginalized sections as part of its social governance.
Taxation Policy Impact
Effective tax expense was INR 28.9 Cr in FY25, down 59.7% YoY following the decline in Profit Before Tax.
Legal Contingencies
The bank manages various operational and compliance-related legalities; specific pending court case values were not disclosed in the provided documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the stabilization of asset quality in the microfinance segment, where GNPAs increased to 5.5% in December 2024. Sustained pressure here could keep credit costs high and ROA below the 1% threshold.
Geographic Concentration Risk
Operations are spread across 16 states, but the bank remains exposed to regional socio-political or climatic disruptions affecting microfinance clusters.
Third Party Dependencies
Dependency on the CGFMU guarantee scheme is high, as it covers 95% of the microfinance portfolio, providing a critical safety net for credit risk.
Technology Obsolescence Risk
The bank is investing in business analytics to modernize its individual assessment and collection processes to remain competitive against digital-first lenders.
Credit & Counterparty Risk
Credit risk is concentrated in the micro-banking segment (JLG model); however, the shift toward secured assets like housing and commercial vehicles (now 47% of AUM) is improving the overall counterparty risk profile.
