Money & Banking

Suryoday Small Finance Bank reports 28 % jump in profit in FY20

Our Bureau Mumbai | Updated on May 28, 2020 Published on May 28, 2020

Suryoday Small Finance Bank (SSFB) reported a 28 per cent increase in FY20 net profit at Rs 111 crore against Rs 87 crore in FY19.

A break-up of the Bank’s results shows that 77 per cent of the net profit (or Rs 85 crore) came in the first half in FY21 vis-a-vis 45 per cent (or Rs 39 crore) in the year ago period.

Net interest income (difference between interest earned and interest expended) was up 45 per cent in FY21 at Rs 491 crore against Rs 339 crore in FY20. Other income rose 30 per cent to Rs 87 crore against Rs 67 crore.

Provisions and contingencies, including floating provisions and provisions towards overdue standard accounts, jumped 55 per cent to Rs 195 crore (Rs 126 crore).

Gross non-performing assets (GNPAs) increased to 2.79 per cent as at March-end 2020 against 1.81 per cent as at March-end 2019. Net non-performing assets (NNPAs) increased to 0.57 per cent as at March-end 2020 against 0.44 per cent as at March-end 2019.

Capital adequacy ratio declined to 29.57 per cent as at March-end 2020 against 35.03 per cent as at March-end 2019.

Ups COVID-19 related provisions

As per its notes to accounts, SSFB increased floating provision on micro finance loans (joint liability group) classified as standard asset by 0.5 per cent in the half year (H2) ended March 31, 2020 in view of the heightened uncertainty due to COVID-19 pandemic.

“Accordingly, the Bank carries floating provision of 2 per cent on standard micro finance loans amounting to Rs 53.22 crore. The provision made is over and above the minimum regulatory requirement for standard assets and NPA (non-performing asset) provisioning by the Reserve Bank of India (RBI). The floating provision is netted-off from advances,” as per the notes.

The Bank said it has made provision of 10 per cent, amounting to Rs 10.87 crore (March 31, 2019: Nil) on overdue standard accounts as on February 29, 2020 following RBI guidelines relating to COVID- 19 Regulatory package issued on April 17, 2020 and clarification provided by RBI to the Indian Banks’ Association.

SSFB holds provisions of Rs 55.12 crores, other than provision on overdue standard accounts as at February 29, 2020 against the potential impact of Covid-19 based on the information available at this point in time. The provisions held by the Bank are in excess of the RBl prescribed norms, according to the notes.

Deposits and Advances

Deposits jumped 79 per cent to Rs 2849 crore as at March-end 2020 against Rs 1,593 crore as at March-end 2019. Advances increased 32 per cent to Rs 3532 crore as at March-end 2020 against Rs 2680 crore as at March-end 2019.

“Disbursement has been sluggish during the lockdown period. The Bank continues to grow its deposits,” the Bank said.

Published on May 28, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
Suryoday Small Finance Bank raises ₹62.14 cr for expansion