Suryoday Small Finance Bank (SSFB) has reported a mixed set of financial results for the second quarter, showcasing robust loan growth but facing ongoing asset quality pressures. The bank's performance reflects its efforts to navigate a challenging economic environment while pursuing strategic growth initiatives.

Loan Growth and Disbursements

SSFB's gross advances stood at ₹11,124 crore as of September 30, reflecting a year-on-year increase of 18.9% compared to ₹9,360 crore in the previous year. Disbursements, excluding supply chain financing, during the half-year ended September 30, were ₹3,973 crore, up 18.1% from ₹3,366 crore in the same period last year.

The bank's Vikas loan segment, which focuses on individual loans rather than the joint liability group model, showed particularly strong growth. Vikas loan disbursements stood at ₹905 crore in Q2, marking a significant increase of 111% year-on-year.

Financial Performance

Despite the growth in advances, SSFB's financial performance showed mixed results:

The bank's cost of funds increased marginally to 7.8% compared to 7.6% a year earlier. The cost-to-income ratio for H1 was 72.9%, up from 61.8% in the corresponding period last year.

Asset Quality

SSFB's Gross Non-Performing Asset (GNPA) ratio increased to 5.9% as of September 30, compared to 2.9% in the same period last year. However, the bank successfully claimed ₹313 crore under the Credit Guarantee Fund for Micro Units (CGFMU) scheme in September, which is expected to provide some relief to its asset quality metrics.

Deposit Growth and CASA Ratio

The bank's deposit base expanded to ₹11,991 crore, marking a 35.5% increase from ₹8,851 crore in the previous year. The share of retail deposits improved to 86% as of September, up from 80.2% a year earlier. SSFB's CASA (Current Account Savings Account) ratio also showed improvement, reaching 20.7%, up from 17.9% as of September of the previous year.

Digital Banking Initiatives

SSFB's digital banking strategy has shown promising results, with digitally sourced deposits crossing ₹1,300 crore and constituting over 10% of the bank's total deposits. This channel has helped the bank acquire over 80,000 retail fixed deposit customers.

The bank has also partnered with Paytm to launch a credit line on UPI product, which has already onboarded over 50,000 customers.

Future Outlook

For the second half of the fiscal year, SSFB plans to focus on:

1. Deepening engagement with MSMEs
2. Expanding secured lending
3. Strengthening the Vikas loan franchise
4. Accelerating CASA growth through digital-led journeys
5. Broadening the retail base with a focus on granularity

The bank maintains a strong capital adequacy ratio of 23.4%, well above the regulatory requirement of 15%. Management expects the second half of the fiscal year to mark a steady recovery, setting the stage for stronger growth in the following fiscal year.

While the bank faces challenges in asset quality and profitability, its strategic focus on secured lending and digital initiatives, coupled with a strong capital position, positions it to navigate the current economic environment and pursue sustainable growth in the coming quarters.

Suryoday Small Finance Bank Limited has announced the resignation of its Chief Information Security Officer (CISO), Anshuman Pund. The bank disclosed this development in a recent regulatory filing, providing details about the change in senior management.

Key Details of the Resignation

Timeline of Events

The bank had initially informed the stock exchanges about Pund's resignation on October 16, 2025. In a follow-up communication dated November 10, 2025, Suryoday Small Finance Bank provided additional details, including the acknowledgment of Pund's resignation letter.

Regulatory Compliance

The bank's disclosure adheres to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates prompt disclosure of material events to the stock exchanges.

Impact and Next Steps

The departure of a senior executive like the CISO can potentially impact a bank's information security strategy. However, Suryoday Small Finance Bank has not provided any information about a successor or interim arrangements for the CISO role.

As financial institutions continue to face evolving cybersecurity challenges, the role of CISO remains crucial. The bank's next steps in filling this position will be important for maintaining robust information security practices and ensuring the protection of customer data.

Stakeholders and customers may want to stay informed about any further announcements regarding the appointment of a new CISO or any changes to the bank's information security policies and practices in light of this transition.