Suryoday Small Finance Bank Reports Q2 Profit Dip, Approves Rs 1,000 Crore Fundraising Plan

Suryoday Small Finance Bank , a key player in India's microfinance sector, has reported its financial results for the second quarter, revealing a mixed performance amid challenging market conditions. The bank also announced a significant fundraising initiative, signaling its commitment to growth and expansion.

Q2 Financial Performance

For the quarter ended September 30, Suryoday Small Finance Bank reported the following key figures:

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Net Profit	Rs 30.41 crore	Rs 45.39 crore	-33%
Gross NPA Ratio	5.93%	3.03%	+290 bps
Net NPA Ratio	3.80%	0.80%	+300 bps
Capital Adequacy Ratio	23.41%	-	-

The bank's net profit for Q2 FY2025-26 stood at Rs 30.41 crore, marking a 33% decrease from Rs 45.39 crore in the same quarter of the previous year. This decline in profitability comes amidst a challenging economic environment and increased provisioning requirements.

Asset Quality Concerns

Suryoday Small Finance Bank witnessed a deterioration in its asset quality during the quarter. The Gross Non-Performing Asset (NPA) ratio increased to 5.93% from 3.03% year-on-year, while the Net NPA ratio rose to 3.80% from 0.80%. This significant increase in NPAs may be attributed to the ongoing economic challenges and their impact on the bank's borrower base.

Capital Position and Fundraising Plan

Despite the challenges, the bank maintains a strong capital position with a Capital Adequacy Ratio of 23.41%. To further strengthen its financial base and support future growth, the Board of Directors has approved a fundraising plan of up to Rs 1,000 crore. This capital raise may be executed through various modes, including preferential allotment, Qualified Institutions Placement (QIP), private placement, or rights issue, subject to necessary shareholder and regulatory approvals.

Credit Guarantee Scheme Impact

The bank has benefited from the Credit Guarantee Fund for Micro Units (CGFMU) scheme, which has allowed for a reduction in provisions by Rs 37.49 crore for the quarter. This scheme, aimed at supporting micro and small enterprises, has helped mitigate some of the financial pressures faced by the bank.

Half-Year Performance

For the half-year ended September 30, Suryoday Small Finance Bank reported:

Metric	H1 FY2025-26	H1 FY2024-25	YoY Change
Net Profit	Rs 65.69 crore	Rs 115.45 crore	-43.1%

The significant decline in half-yearly profits underscores the challenging operating environment for small finance banks in the current fiscal year.

Outlook

While Suryoday Small Finance Bank faces headwinds in terms of profitability and asset quality, its strong capital position and proactive fundraising efforts indicate a focus on long-term stability and growth. The success of its capital raising initiative and its ability to manage asset quality will be crucial factors to watch in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.82%	-8.90%	-6.00%	+12.63%	-5.67%	-50.13%

Suryoday Small Finance Bank Limited has announced a significant addition to its leadership team, appointing Mr. Pankaj Gulati as Chief People Officer & Head - CSR, effective October 23, 2025. This strategic move aims to strengthen the bank's human resources and corporate social responsibility initiatives.

Key Appointment Details

Position	Appointee	Effective Date
Chief People Officer & Head - CSR	Mr. Pankaj Gulati	October 23, 2025

Extensive Experience

Mr. Gulati brings over two decades of expertise to Suryoday Small Finance Bank, with a rich background in the Banking, Finance, and Insurance sectors. His career highlights include:

Proven track record in managing comprehensive employee lifecycle
Expertise in performance and rewards systems
Experience in benefits administration
Proficiency in HR technology and analytics
Strong governance background

Previous Associations

Mr. Gulati's professional journey includes roles at several prominent financial institutions:

AU Small Finance Bank
Fincare Small Finance Bank
MetLife India Insurance
Pivot Training Pvt. Ltd.
ING Vysya Life Insurance Co. Ltd.
HSBC

Strategic Implications

This appointment underscores Suryoday Small Finance Bank's commitment to enhancing its human resource capabilities and corporate social responsibility efforts. Mr. Gulati's extensive experience is expected to contribute significantly to the bank's growth and operational efficiency.

The bank's decision to combine the roles of Chief People Officer and Head of CSR suggests a holistic approach to employee management and corporate citizenship, potentially leading to more integrated and impactful initiatives in both areas.

As Suryoday Small Finance Bank continues to evolve in the competitive financial services landscape, this strategic appointment may play a crucial role in shaping its organizational culture, talent management strategies, and social responsibility programs.

Investors and industry observers will likely watch closely to see how Mr. Gulati's expertise translates into tangible improvements in the bank's human resource practices and CSR activities in the coming months.