Suryoday Small Finance Bank reported unaudited financial results for Q1FY27, demonstrating robust asset growth and improved asset quality. Gross advances stood at ₹14,374 crore, reflecting a 32.5% year-on-year increase from ₹10,846 crore in Q1FY26. On a sequential basis, advances grew by 8.4% from ₹13,261 crore in Q4FY26. The bank's total deposits reached ₹14,634 crore, registering a 29.4% YoY growth compared to ₹11,312 crore in the prior year period.

The lender's Current Account Savings Account (CASA) balance surged by 53.4% YoY to ₹3,072 crore, up from ₹2,003 crore in Q1FY26. Consequently, the CASA ratio improved to 21.0% from 17.7% a year ago. Disbursements for the quarter grew by 30.6% YoY to ₹2,954 crore. When excluding Supply Chain Finance (SCF), disbursements amounted to ₹2,552 crore, a 32.9% increase from the corresponding quarter last year.

Asset quality metrics showed improvement during the period. The Gross Non-Performing Assets (GNPA) ratio moderated to 6.6% in Q1FY27 from 8.5% in Q1FY26. The bank's collection efficiency remained strong, with the overall collection efficiency at 99.2% and the Inclusive Finance segment collection efficiency at 99.2% for the zero bucket.

Asset Quality Breakdown

The bank provided a detailed breakdown of its asset quality and credit guarantee coverage as of June 30, 2026. The Gross NPA stood at ₹931 crore, while Net NPA (NNPA) was recorded at ₹559 crore after provisions of ₹372 crore.

Risk Management Measures

Suryoday Small Finance Bank continues to mitigate risk through the Credit Guarantee Fund for Micro Units (CGFMU) Scheme. As of June 2026, approximately 98% of the bank's Inclusive Finance portfolio is covered under this scheme. The bank stated that these figures are provisional and subject to review by the Audit Committee, Board of Directors, and limited review by the Statutory Auditors.

Suryoday Small Finance Bank has fixed Friday, July 17, 2026, as the record date to determine shareholder eligibility for a final dividend of ₹1.50 per equity share. The dividend, recommended by the Board for the financial year ended March 31, 2026, amounts to 15% of the face value of ₹10 per share. This payout is subject to approval by shareholders at the 18th Annual General Meeting scheduled for Thursday, August 06, 2026. If approved, the dividend will be paid within 30 days of the declaration, specifically on or before September 05, 2026.

Pursuant to the provisions of the Income Tax Act, 2025, as amended by the Finance Act, 2026, the dividend income is taxable in the hands of the shareholders. Consequently, the bank will deduct tax at source (TDS) at applicable rates when making the payment. The TDS rates will vary based on the residential status and classification of the entity, relying on PAN details registered with the depositories or the Registrar and Transfer Agent, KFin Technologies Limited.

Tax Deduction Provisions

The bank outlined specific TDS provisions for different categories of shareholders. For resident shareholders with a valid PAN, tax will be deducted at 10% on the dividend amount. If a shareholder does not possess a valid PAN or if their PAN is not linked with Aadhaar, the TDS rate increases to 20%. Resident individuals may be exempt from TDS if the total dividend received during the Tax Year 2026-27 does not exceed ₹10,000 or if they submit valid forms such as Form 121 or an exemption certificate.

For non-resident shareholders, the withholding tax rate is generally 20% plus applicable surcharge and cess under domestic tax laws. However, non-residents have the option to be governed by the Double Tax Avoidance Agreement (DTAA) if it is more beneficial. To avail of DTAA benefits, shareholders must submit documents including a Tax Residency Certificate, Tax Identification Number, and electronically filled Form 41 by the record date.

Compliance and Documentation

Shareholders are required to ensure that their details, including PAN, residential status, and category, are updated with their depository participants by the record date. The bank will rely on these details to determine entitlement and comply with TDS provisions. Documents necessary for lower or nil TDS, or for claiming treaty benefits, must be submitted on or before Friday, July 17, 2026. Any communication regarding tax determination received after this date will not be entertained.

In cases where dividend income is assessable in the hands of a person other than the registered shareholder, a declaration under Rule 203 of the Income Tax Rules, 2026, must be filed by the record date. Shareholders holding shares under multiple accounts with different statuses should note that the higher applicable tax rate will be considered on their entire holding. The bank clarified that it is not obligated to apply beneficial DTAA rates if the documentation is incomplete or unsatisfactory.

Key Dividend and Tax Details