Shares of this private-sector Bank under the ‘small-cap’ category jumped up to 6 percent in Thursday’s trading session after the company reported strong business growth during the quarter ended September 2023. In the past year, the company’s stock has gained over 70 percent.
With a market capitalization of Rs 1,797.85 crores, the stocks of Suryoday Small Finance Bank Limited, a Private-sector Bank, opened their trading hour on Thursday at Rs 170 and currently trade at Rs 169.35. The scrip witnessed an intra-day high of Rs 172.85 indicating a gain of around 6 percent as compared to the previous close of Rs 162.55 apiece.
Such bullish sentiments around the stock were observed after the company, through a regulatory filing with the BSE dated 4th October 2023, provided some key updates for the quarter ended September 2023, i.e., Q2FY23-24.
The Bank reported a YoY increase of 29 percent in its gross advances from Rs 5,378 cores during Q2FY23 to Rs 6,921 crores during Q2FY24. Moreover, the disbursements of the Bank, during the same time horizon, rose 43 percent YoY from Rs 1,118 crores to Rs 1,598 crores.
Coming onto the retail deposits of the Bank, there was a growth of a huge 64 percent from Rs 3,025 crores during Q2FY23 to Rs 4,956 crores during Q2FY24. The collection efficiency of the Bank increased from 95 percent to 102 percent. YoY, the Bank’s gross NPA ratio drastically dropped from 9.9 percent to 2.9 percent.
During the recent financial quarters, the bank’s total income figure rose from Rs 363.41 crores during Q4FY22-23 to Rs 409.13 crores during Q1FY23-24, and, the net profits, during the same time horizon, moved up from Rs 38.91 crores to Rs 47.6 crores.
Coming onto some bank-specific ratios, the net non-performing assets reduced drastically during the recent financial years shifting from 5.97 percent during FY21-22 to 1.55 percent during FY22-23. Adding to the positive movements, the net interest margins of the bank increased from 7.51 percent to 7.93 percent keeping the timeframe the same.
As per the latest shareholding pattern data for the June 2023 quarter, the Bank’s Promoters hold a 23.3 percent stake, and the Foreign Institutional Investors (FIIs) hold a 1.68 percent stake in the Bank.
Suryoday Small Finance Bank Limited, primarily serving the unserved and underserved category of society, operates through various business segments including retail banking, treasury, corporate banking, and many more. Moreover, the Bank aids with finance for mortgages, commercial vehicles, and loans to non-banking finance companies (NBFCs).
Written by Amit Madnani
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