Suryoday Small Finance Bank slips into the red in Q2

Suryoday Small Finance Bank made a net loss of Rs 1.9 crore for the quarter ending September 30, as compared with Rs 27.2 crore net profit in the year ago period, owing higher credit cost following the pandemic-led stress on its borrowers.

This is the bank's second consecutive quarterly loss after Rs 47.7 crore loss in the June quarter.

Its operating profit rose 62% at Rs 82.8 crore against Rs 51.1 crore over the same period. Its net interest income at 147 crore reflects a 34% rise, primarily on account of rise in gross advances over the period and lower cost of funds, the bank said in a regulatory filing to stock exchanges.

But a 6.6-fold higher provisions to cover bad loans and others led to the loss.

Its asset quality deteriorated with gross non-performing assets ratio rising to 10.2% at the end of September compared with 9.5% at the end of June. Net NPA remained flat 4.5%. Provision coverage ratio stood a tad higher at 71.2%.

The bank restructured loans to the tune of Rs 794 crore, which was 17.7% of gross loans, which grew 21% year-on-year to Rs 4470 crore.