Suryoday Small Finance Bank Limited has announced a postal ballot notice dated January 22, 2026, seeking shareholder approval for significant corporate actions including a major fund-raising initiative and board restructuring.

Fund Raising Initiative

The bank proposes to raise funds for an aggregate amount not exceeding ₹1,000 crore through multiple financing modes. The comprehensive fund-raising strategy includes:

The bank's current financial position remains strong with a Capital to Risk Weighted Asset Ratio (CRAR) of 21.9% and Tier I Capital Ratio of 21% as of December 31, 2025, both significantly above regulatory requirements of 15% and 7.50% respectively.

Board Re-appointment

The second resolution addresses the re-appointment of Mr. Krishna Prasad Nair (DIN: 02611496) as Non-Executive Independent Director. Key details include:

Mr. Nair's re-appointment follows regulatory compliance under the Banking Regulation Act, 1949, and RBI's Small Finance Banks Governance Directions, 2025, which restrict overall tenure of Non-Executive Directors to eight consecutive years.

Postal Ballot Process

The bank has established a comprehensive e-voting framework for shareholder participation:

Regulatory Framework

Both resolutions require special resolution approval from shareholders. The fund-raising initiative aligns with provisions under Sections 23, 41, 42, and 62 of the Companies Act, 2013, along with SEBI regulations. The director re-appointment complies with Section 149(10) of the Companies Act and banking sector governance norms.

The bank has appointed Ms. Dhara Gala and Ms. Priyanka Tank as scrutinizers to ensure fair and transparent voting processes. KFin Technologies Limited serves as the Registrar and Share Transfer Agent, providing e-voting platform services.

Strategic Rationale

The management emphasizes the fund-raising initiative's importance for supporting ambitious growth plans across business verticals. The bank aims to deepen MSME engagement, broaden secured lending, strengthen Vikas Loans, and drive CASA growth through digital transformation initiatives. The proposed capital infusion will maintain CRAR above 20% while supporting expansion in existing and new markets.

Shareholders can access the complete postal ballot notice on the bank's website and participate in e-voting through multiple platforms including NSDL, CDSL, and KFintech portals.

Suryoday Small Finance Bank Limited conducted its Q3 FY26 earnings conference call on January 23, 2026, presenting financial results for the quarter and nine months ended December 31, 2025. The bank demonstrated strong growth momentum across key business segments while navigating industry-wide challenges in the microfinance sector.

Financial Performance Overview

The bank's gross advances reached Rs. 11,885 crores as of December 31, 2025, representing a robust year-on-year growth of 24.3% from Rs. 9,563 crores in the previous year. This growth was supported by strong disbursement activity, with disbursements excluding Supply Chain Finance totaling Rs. 6,230 crores for the nine months ended December 2025, marking a 30.2% increase from Rs. 4,785 crores in the corresponding period last year.

Business Segment Performance

Inclusive Finance and Microfinance

The inclusive finance segment showed significant recovery with disbursements returning to earlier run rates, now clocking closer to Rs. 500 crores per month. Collection efficiency continued to improve with the current bucket for the inclusive finance portfolio approaching 99.5%. The bank's strategic shift from Joint Liability Group (JLG) model to individual lending gained traction, with individual loans now constituting approximately 72% of the inclusive finance book.

Vikas loan disbursements during 9M FY26 stood at Rs. 2,729 crores, reflecting sustained year-on-year growth. Importantly, close to 99% of the inclusive finance portfolio remains covered under the CGFMU (Credit Guarantee Fund for Micro Units) scheme, providing strong capital protection.

Retail Assets Growth

The commercial vehicle portfolio expanded from Rs. 1,190 crores in December 2024 to Rs. 1,609 crores in December 2025, registering a 35% year-on-year growth. The mortgage book, including micro-mortgages, grew from Rs. 1,999 crores to Rs. 2,778 crores, achieving a 39% year-on-year increase.

Digital Banking Initiatives

The bank's digital transformation showed promising results with digitally sourced deposits contributing nearly 30% of incremental deposit accretion. The Credit on UPI product, launched in partnership with Paytm, demonstrated strong early traction with 2.2 lakh active customers acquired in one quarter. The bank's customer base expanded to nearly 3.7 million as of December 2025 compared to 3.3 million a year earlier.

Asset Quality and Capital Position

As of December 2025, the bank's GNPA ratio stood at 6.6%, with asset quality trends showing signs of stabilization. The CGFMU coverage continues to safeguard the bank's balance sheet, with a 100% claim rate on eligible portfolios since inception. Out of NNPA of Rs. 501 crores as of December 2025, Rs. 467 crores are receivable under various cohorts under the CGFMU scheme.

The bank maintained a strong capital adequacy ratio of 21.9%, well above the regulatory requirement of 15%, providing adequate headroom for future growth. The CASA ratio stood at 21.2%, reflecting improving deposit granularity and franchise depth.

Management Outlook

During the earnings call, management expressed confidence in the bank's trajectory, citing improving repayment behavior, disciplined credit processes, and easing portfolio stress. The leadership expects the coming quarters to mark a phase of stability and consolidation, setting the stage for healthier and more balanced growth in FY27. With a largely CGFMU-covered unsecured book and growing retail assets across commercial vehicles and mortgages, the bank believes it is well-positioned for sustainable long-term growth.