- SURYODAY.NS
- 543279
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Release Date: October 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Gross advances grew 34.6% YoY to Rs 14,972 crores, with disbursements up 27.4% YoY, indicating strong business momentum.
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Asset quality improved significantly, with gross NPAs declining to 2.9% from 6.5% in the previous quarter, aided by CGFMU claims and write-offs.
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Net interest income grew 42.8% YoY to Rs 368.8 crores, and NIM improved by 28 bps YoY to 7.2%.
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Retail deposits grew 31% YoY to Rs 16,184 crores, with retail deposits constituting 84.5% of total deposits, demonstrating a granular deposit base.
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Digital banking initiatives, such as credit line on UPI (CLOE), gained traction with over 14 lakh customers targeted, contributing to fee income and customer acquisition.
Negative Points
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CGFMU cover for fresh disbursements in FY27 has not yet opened, pending government notification, which could impact provisioning and credit costs if delayed.
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Gross NPAs in the secured non-MFI book increased from 6.8% to 7.2%, partly due to seasoning and cyclicality, indicating some asset quality pressure.
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Drought conditions in Karnataka and Maharashtra pose a potential risk to the microfinance portfolio, with Rs 1,100 crores exposure in affected areas, though no material impact seen yet.
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Capital adequacy ratio (CRAR) at 19.37% is below the comfort range of 20-22%, and further tier 2 capital raise is pending due to volatile market rates.
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PSL income decreased by Rs 37 crores QoQ, impacting NIM, and is expected to remain low in Q3, which may continue to pressure profitability.
Q & A Highlights
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Warning! GuruFocus has detected 3 Warning Signs with BOM:543279.
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Q: With the CGFMU cover not yet notified for FY27, how is the bank accounting for the premium and what is the expected credit cost impact? A: The MD & CEO explained that the CGFMU scheme’s first 10-year tenure (since 2016) has ended and renewal notification is pending with the ministry, which is outside the bank’s control. The bank has already provided approximately Rs 40-45 crores for the premium in H1 FY27, so there will be no P&L impact when the scheme opens. All disbursements up to March 31, 2026 are fully covered and renewed; only fresh FY27 disbursements (roughly Rs 300-350 crores) await cover. The CFO added that even without the cover, current collection efficiencies suggest similar credit costs would not recur.
