The Reserve Bank of India (RBI) has given its approval for the re-appointment of Baskar Babu Ramachandran as the Managing Director & Chief Executive Officer (MD & CEO) of Suryoday Small Finance Bank Limited. This decision extends Ramachandran's tenure for an additional three years, from January 23, 2026, to January 22, 2029.

Key Details of the Re-appointment

Background and Experience

Baskar Babu Ramachandran has been a pivotal figure in Suryoday Small Finance Bank's journey. He co-founded Suryoday Micro Finance Private Limited in 2008, which later transformed into Suryoday Small Finance Bank in January 2017. His educational background includes:

• Bachelor's Degree in Mechanical Engineering from the University of Madras
• MBA from Pondicherry University
• Participation in a management development program for Strategic Management for corporate leadership at Indian Institute of Management – Calcutta

Ramachandran's extensive experience in the banking and finance sector includes associations with prominent organizations such as GE Capital Transportation Financial Services, HDFC Bank, and Cholamandalam.

Regulatory Compliance and Approval Process

The re-appointment follows a series of regulatory steps:

1. Shareholders' approval at the 17th Annual General Meeting held on September 11, 2025
2. RBI approval received on October 16, 2025
3. Compliance with Section 35B of the Banking Regulation Act, 1949

The bank has confirmed that Ramachandran is not related to any other Director or Key Managerial Personnel and is not debarred from holding directorial positions by any regulatory authorities.

This re-appointment reflects the confidence of both the RBI and the bank's shareholders in Ramachandran's leadership and vision for Suryoday Small Finance Bank Limited. As the bank continues to navigate the evolving landscape of small finance banking in India, Ramachandran's extended tenure is expected to provide stability and continuity in its strategic direction.

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.