Suryoday Small Finance Bank has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 to the National Stock Exchange of India and BSE Limited. The filing, made on July 14, 2026, details the bank's adherence to environmental, social, and governance (ESG) principles as mandated under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The report discloses that the bank incurred a monetary penalty of ₹2,00,000 during the financial year. The Reserve Bank of India imposed this fine for SGL bouncing, referencing circular IDMD.DOD.17/11.01.01 (B) 201011 dated July 14, 2010. The bank confirmed that no appeals were preferred against this monetary action.

Operational and Financial Metrics

The BRSR provides key operational data for the reporting period. The bank's paid-up capital stood at ₹1,06,28,48,240. It operated 717 offices nationally, serving 15 states, with no international operations. The bank reported a turnover of ₹25,199,667,398 and a net worth of ₹20,783,175,034.

Environmental Impact

The bank noted an increase in energy consumption during FY 2025-26, attributing the rise to the relocation to a larger corporate office and the addition of seven new branch offices. Consequently, total Scope 1 and Scope 2 greenhouse gas emissions increased compared to the previous financial year. However, the bank optimized water usage by replacing manual taps with sensor-based fixtures, resulting in lower water consumption.

Governance and Compliance

Suryoday Small Finance Bank confirmed that it has a Corporate Social Responsibility & ESG Committee in place to oversee sustainability-related issues. The Managing Director & Chief Executive Officer, Mr. Baskar Babu Ramachandran, is identified as the highest authority responsible for implementing the Business Responsibility policy. The bank reported that it has not yet constituted a dedicated focal point for addressing human rights impacts but is currently in the process of instituting one.

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.