Suryoday Small Finance Bank has released its provisional financial highlights for Q3FY26 ended December 31, 2025, demonstrating strong growth momentum across key business parameters. The bank's performance reflects robust expansion in both lending and deposit mobilization activities.

Financial Performance Highlights

The bank's financial metrics for Q3FY26 show significant improvement compared to the previous year:

Lending and Disbursement Growth

Gross advances reached ₹11,810 crore, representing a substantial 23% year-on-year growth from ₹9,563 crore in Q3FY25. On a quarter-on-quarter basis, advances grew 6% from ₹11,124 crore in Q2FY26. Disbursements showed exceptional growth of 84% year-on-year, reaching ₹2,698 crore compared to ₹1,467 crore in the corresponding quarter of the previous year. Excluding Supply Chain Finance (SCF), disbursements grew 59% YoY to ₹2,257 crore.

Deposit Mobilization and CASA Performance

Total deposits demonstrated strong growth of 33% year-on-year, increasing to ₹12,865 crore from ₹9,708 crore in Q3FY25. The deposit composition shows healthy diversification:

CASA deposits grew impressively by 44% year-on-year to ₹2,731 crore, with the CASA ratio improving to 21.20% from 19.50% in Q3FY25.

Asset Quality and Collection Efficiency

The bank's asset quality metrics show mixed trends. The Gross Non-Performing Assets (GNPA) ratio increased to 6.70% in Q3FY26 from 5.50% in Q3FY25. However, collection efficiency metrics remained strong:

• Collection Efficiency (1 EMI): 96.50% compared to 92.40% in Q3FY25
• Overall Collection Efficiency: 99.40% versus 94.80% in the previous year

As of December 31, 2025, the bank's NPA composition stands at ₹790 crore in GNPA, with provisions of ₹285 crore and Net NPA of ₹506 crore.

Risk Management Framework

The bank continues to maintain prudent risk management practices through the Credit Guarantee Scheme. Approximately 98% of the bank's Inclusive Finance portfolio is covered under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme as of December 2025. The amount claimable under CGFMU stands at ₹467 crore, providing substantial risk mitigation for the bank's lending portfolio.

Regulatory Compliance

These provisional unaudited numbers are subject to review and approval by the Audit Committee and Board of Directors, as well as limited review by the bank's Statutory Auditors. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

1729 Capital, a Foreign Portfolio Investor (FPI) registered with the Securities and Exchange Board of India (SEBI), has received enhanced approval from the Reserve Bank of India (RBI) to acquire up to 9.99% stake in Suryoday Small Finance Bank Limited (SSFB). This latest development significantly expands upon the earlier post-facto approval for 7.14% shareholding, marking a substantial milestone for both entities.

Latest RBI Approval Details

The Reserve Bank of India has granted prior approval to 1729 Capital and its associates for the expanded stake acquisition through a letter dated December 10, 2025. This approval represents a notable increase from the previously sanctioned 7.14% holding.

Regulatory Framework and Compliance

The enhanced approval comes with stringent regulatory compliance requirements that 1729 Capital must adhere to throughout its investment tenure.

Key Investment Conditions

The RBI has established specific conditions governing 1729 Capital's investment in Suryoday Small Finance Bank. The aggregate holding must not exceed 9.99% of the paid-up share capital or voting rights at any time. Additionally, if the aggregate holding falls below 5% at any point, prior RBI approval will be required to increase it back to 5% or more.

Financial Context and Bank Performance

Suryoday Small Finance Bank has demonstrated robust financial growth, providing a solid foundation for increased investor interest.

Strategic Implications

This enhanced approval reflects growing institutional confidence in Suryoday Small Finance Bank's business model and growth prospects. The increased stake limit provides 1729 Capital with greater strategic influence while maintaining compliance with regulatory frameworks governing foreign investments in Indian banking institutions. The progressive approvals from 7.14% to 9.99% demonstrate the RBI's measured approach to foreign portfolio investments in the small finance banking sector.