1. Opening Hook
Remember when banks were the ones handing out advice instead of asking for patience? Well, Suryoday’s Q2 FY26 call felt like a therapy session for balance sheets. The management swore by digital dreams, “Vikas” loans, and Paytm partnerships — yet profits decided to take a power nap. Still, they say recovery is “steady,” and FY27 will be “the real party.” Read on — it only gets more entertaining when bankers start speaking optimism with decimal precision.
2. At a Glance
- Gross Advances up 18.9%:Growth engine still running — but sputtering on margins.
- Deposits up 35.5%:Customers still trust the brand — maybe more than the market does.
- CASA Ratio at 20.7%:“Cheap funds, expensive optimism.”
- PAT down 33% to ₹30 crore:Profits decided to work from home.
- GNPA at 5.9% (vs 2.9% YoY):NPA gremlins back for an encore.
- Capital Adequacy at 23.4%:Bank’s capital buffer thicker than its profit margin.
3. Management’s Key Commentary
“Gross advances stood at ₹11,124 crore, up 18.9% YoY.”(Translation: Growth survived, but profits didn’t RSVP.)
“Vikas loan disbursements rose 111% YoY — the shift to individual loans paying off.”(Or maybe “Vikas” is just what they call “risky loans with hope.” 😏)
“GNPA increased to 5.9% vs 2.9% last year.”(That’s not a typo. It’s reality, garnished with optimism.)
“Profit after tax decreased 33% YoY to ₹30 crore.”(Profitability went on a diet — results not visible yet.)
“CASA ratio improved to 20.7%, up from 17.9%.”(Translation: Customers like parking money, not borrowing it.)
“We received ₹313 crore under CGFMU — full 100% claim.”(Insurance saved the day. Again.)
“Digital deposits crossed ₹1,300 crore — over 10% of total.”(Because apps clearly deliver better ROI than branches these days.)
“Partnered with Paytm for credit line on UPI — 50,000 customers onboarded.”
(Banking meets fintech; both hope someone pays back on time.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Takeaway |
|---|---|---|---|---|
| Gross Advances | ₹11,124 Cr | ₹9,360 Cr | +18.9% | Loans keep growing, so do hopes |
| Deposits | ₹11,991 Cr | ₹8,851 Cr | +35.5% | Impressive — maybe too good to last |
| CASA Ratio | 20.7% | 17.9% | +280 bps | Some actual progress |
| NII | ₹258 Cr | ₹300 Cr | -13.9% | Margin math failed |
| PPOP | ₹79 Cr | ₹127 Cr | -37.6% | Costs biting hard |
| PAT | ₹30 Cr | ₹45 Cr | -33% | Slippage hurts more than inflation |
| GNPA | 5.9% | 2.9% | +300 bps | Problem loans doubling as collectibles |
| Cost-to-Income | 72.9% | 61.8% | +1110 bps | Expense discipline? Optional. |
The short version: deposits are swelling, profits are slimming, and bad loans are celebrating Diwali early.
5. Analyst Questions
Q:“How will you hit 1.5% ROA when first-half profit is barely ₹60 crore?”A:“We’ll manage 1.2% — with discipline and divine intervention.”
Q:“Any plans to raise ₹1,000 crore equity below book value?”A:“No immediate plans. We’re just flexing regulatory compliance.”
Q:“PSLC income halved — what’s the fix?”A:“Wait for Q4. Miracles are seasonal.”
Q:“Why GNPA jump?”A:“Because math.
