1. At a Glance
Suryoday SFB is the unassuming underdog of small finance banks—serving 3.4 million customers across 15 states with micro-loans, retail deposits, and a whole lot of volatility. The Q1 FY26 net profit crashed 50% QoQ to ₹35 Cr, while Gross NPAs ballooned to 8.5%. Trading at 0.75x book, it’s a discount deal—unless you check the quality of the “goods.”
2. Introduction with Hook
Picture this: a bank that was the poster child for financial inclusion, now pulling off quarterly performances with more plot twists than “Bigg Boss.” In Q1 FY26, while deposits soared 39% YoY, profits got punched in the face and GNPA did a Bollywood-style comeback to 8.5%.
If “confused but ambitious” were a bank, Suryoday would have a branch in every neighborhood.
3. Business Model (WTF Do They Even Do?)
Suryoday started life as an NBFC, then morphed into a Small Finance Bank (SFB) in 2017. Now it’s serving the “underbanked”—a fancy term for people banks ignored until SEBI started caring.
They offer:
- Microfinance loans
- MSME loans
- Retail deposits
- Housing finance and secured loans
- Banking outlets (710 of them!)
In short:
“They lend small, charge big, and pray their borrowers don’t ghost them.”
4. Financials Overview
Q1 FY26 (Consolidated):
- Revenue: ₹495 Cr (+1.4% QoQ)
- Net Interest Income (NII): ₹247 Cr
- PAT: ₹35 Cr (↓50% QoQ)
- EPS: ₹3.32 (down from ₹6.59)
- ROE (TTM): 6.18%
- ROA (TTM): 0.82%
Profit volatility = banker’s version of bipolar disorder.
Also, interest margins tightened and other income couldn’t save the day.
5. Valuation
- P/E: 18.4x
- P/B: 0.75x
- Book Value: ₹183
- CMP: ₹138
Valuation looks “cheap” on paper. But…
“If you’re buying this just because P/B is <1, check if the ‘B’ isn’t just a balloon full of NPAs.”
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT halved – from ₹70 Cr to ₹35 Cr
- GNPA surged to 8.46%
- Net NPA rose to 5.64%
- Deposits up 39% YoY to ₹11,312 Cr
- Advances up 20% YoY to ₹10,846 Cr
- Capital Adequacy Ratio (CRAR): 24.61% (solid!)
Also in the oven: Retail panic. Shareholder exits. And murmurs of consolidation in SFBs.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Deposits | ₹10,580 Cr |
| Advances | ₹10,846 Cr |
| Borrowings | ₹2,710 Cr |
| Net Worth | ₹1,915 Cr |
| CRAR | 24.61% |
| GNPA | 8.46% |
| Net NPA | 5.64% |
“They’ve got capital. They’ve got reach. But their loans are acting like teenagers—zero discipline.”
8. Cash Flow – Sab Number Game Hai
| Year | Ops CF | Inv CF | Fin CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹935 Cr | -₹263 Cr | -₹322 Cr | ₹349 Cr |
| FY24 | ₹1,320 Cr | -₹1,059 Cr | ₹268 Cr | ₹529 Cr |
| FY25 | Coming Soon |
Cash flow from ops is positive—but investing activity is like: “Buy now, think later.”
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 6.18% |
| ROA | 0.82% |
| Net Interest Margin (NIM) | ~8.2% |
| Cost-to-Income | >60% |
| GNPA | 8.46% |
| Net NPA | 5.64% |
| CRAR | 24.61% |
| CASA Ratio | ~17% |
Translation:
“Capital is strong. But returns? Meh. NPAs? Yikes.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue (Cr) | PAT (Cr) | EPS (Rs) |
|---|---|---|---|
| FY23 | ₹1,589 | ₹216 | ₹20.34 |
| FY24 | ₹1,954 | ₹115 | ₹10.82 |
| FY25 (TTM) | ₹1,961 | ₹80 | ₹7.54 |
That’s a PAT fall of nearly 60% in two years. Imagine selling more but earning less. That’s banking, baby.
11. Peer Comparison
| Bank | P/E | P/B | ROE | GNPA | PAT (TTM Cr) |
|---|---|---|---|---|---|
| AU SFB | 25.5 | 3.2 | 14.2% | 1.8% | ₹2,184 Cr |
| Ujjivan SFB | 16.7 | 1.5 | 12.4% | 2.9% | ₹528 Cr |
| Jana SFB | 11.2 | 1.2 | 13.1% | 3.0% | ₹432 Cr |
| Suryoday SFB | 18.4 | 0.75 | 6.2% | 8.5% | ₹80 Cr |
“Looks like the youngest cousin at a bankers’ reunion. Nervous, messy, but kinda promising.”
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 | Jun 2025 |
|---|---|---|
| Promoters | 22.43% | 22.43% |
| FIIs | 4.67% | 4.68% |
| DIIs | 5.66% | 5.93% |
| Public | 67.22% | 66.95% |
Red flag alert: Promoter holding dropped from 28% to 22% in 3 years.
Retail holding? More bloated than a Diwali thali.
13. EduInvesting Verdict™
Suryoday is a classic case of “I want to believe.” Great intent. Solid outreach. A capital adequacy buffer so fat it could survive a shark bite.
But…
ROE is sub-par
NPAs are spiraling
Profits are on a zipline going downward
“A noble cause wrapped in a volatile package. A potential value pick—but only if the NPAs stop acting like party crashers.”
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Suryoday SFB, Small Finance Bank, Q1 FY26, EduInvesting Premium
