Suryoday Small Finance Bank has reported strong financial performance for the second quarter of fiscal year 2026 (Q2FY26), with significant growth across key metrics and a notable improvement in its non-performing assets (NPA) position.

Impressive Growth in Advances and Deposits

The bank's gross advances reached ₹11,544.00 crore as of September 30, 2025, marking a substantial 23% year-on-year growth. Disbursements for the quarter surged by 49% compared to the same period last year, totaling ₹2,430.00 crore.

Total deposits grew by 35% year-on-year to ₹11,991.00 crore, with retail deposits showing a remarkable 45% increase. The bank's Current Account Savings Account (CASA) deposits experienced a significant boost, rising by 57% year-on-year to ₹2,477.00 crore.

Improved CASA Ratio and Collection Efficiency

Suryoday Small Finance Bank's CASA ratio improved to 20.7% in Q2FY26, up from 17.9% in the previous year. The bank also reported strong collection efficiency, with 95.5% efficiency for one EMI and an overall collection efficiency of 98.9%.

Asset Quality and CGFMU Claim

While the Gross Non-Performing Asset (GNPA) ratio increased to 9.3% from 2.9% in the prior year period, the bank received a significant boost from the Credit Guarantee Fund for Micro Units (CGFMU). Suryoday Small Finance Bank received ₹314.00 crore from CGFMU, representing 100% of its claim.

This CGFMU claim is expected to have a positive impact on the bank's asset quality metrics:

• The Provision Coverage Ratio (PCR) is anticipated to improve to approximately 62%.
• Net NPA is estimated to reduce to around 3.8%.
• Over 90% of the bank's Net NPA is covered under CGFMU.
• Approximately 98% of the bank's Inclusive Finance portfolio is protected under the Credit Guarantee Scheme.

Financial Highlights (as of September 30, 2025)

The bank's management has emphasized that these figures are provisional and unaudited, subject to review and approval by the Audit Committee and Board of Directors, as well as a limited review by the Statutory Auditors.

Suryoday Small Finance Bank's performance in Q2FY26 demonstrates its ability to grow its loan book and deposit base while managing asset quality through strategic use of credit guarantee schemes. The significant improvement in CASA deposits and the full receipt of the CGFMU claim highlight the bank's focus on sustainable growth and prudent risk management practices.

Suryoday Small Finance Bank has successfully recovered its entire claim amount of ₹313.89 crore from the National Credit Guarantee Trustee Company (NCGTC), marking a significant financial milestone for the bank.

Claim Details

The bank had raised an interim claim of ₹313.89 crore with NCGTC under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme. Suryoday Small Finance Bank received the full claimed amount, demonstrating the effectiveness of the CGFMU Scheme in supporting small finance institutions.

Impact on Bank Operations

This substantial recovery is expected to bolster the bank's financial position. The bank has clarified that this claim, received under the CGFMU Scheme, is part of its ordinary course of business. This indicates that such claims and recoveries are standard practices within the small finance banking sector, aimed at mitigating risks associated with micro-unit lending.

Transparency and Disclosure

In line with regulatory requirements, Suryoday Small Finance Bank promptly disclosed this development to the stock exchanges. The bank's commitment to transparency is evident in its adherence to the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Management Changes

In a separate announcement, the bank also informed about changes in its senior management:

• Mr. Pandurang Dixit, the incumbent Chief of Internal Vigilance (CIV), will be stepping down from his role following the completion of his second term.
• Mr. Gaurav Popat, the Chief Audit Officer, will take on the additional responsibility of Interim CIV until a new CIV is appointed.

Suryoday Small Finance Bank's successful claim recovery and proactive management transitions reflect its commitment to financial stability and corporate governance. These developments are likely to be viewed positively by stakeholders and could contribute to the bank's growth trajectory in the small finance banking sector.