Suryoday Small Finance Bank 's Managing Director, CEO, and Promoter, Baskar Babu Ramachandran, has received approval for a trading plan to acquire 50,000 equity shares of the bank. This move, approved under SEBI insider trading regulations, demonstrates a significant commitment from the bank's leadership.

Key Details of the Trading Plan

Regulatory Compliance and Restrictions

The trading plan, approved on November 13, 2025, adheres to the Securities and Exchange Board of India (SEBI) Prohibition of Insider Trading Regulations, 2015. Key points of the plan include:

1. A mandatory 120-day cool-off period for Ramachandran and his immediate relatives.
2. The plan is irrevocable, requiring strict adherence to the outlined trades.
3. Execution is subject to the absence of any unpublished price-sensitive information.

Implications and Context

This move by Ramachandran may be seen as a vote of confidence in Suryoday Small Finance Bank's future prospects. It's worth noting that such insider purchases often signal management's positive outlook on the company's value and potential growth.

Additional Corporate Updates

In a separate but related development, Suryoday Small Finance Bank also disclosed that the Reserve Bank of India (RBI) has granted post facto approval to 1729 Capital and its associates for an aggregate holding of 7.14% in the bank. This approval, dated November 13, 2025, is subject to compliance with various regulatory provisions, including the Banking Regulation Act, 1949, and RBI's guidelines on acquisition and holding of shares in banking companies.

These developments underscore the dynamic nature of Suryoday Small Finance Bank's corporate landscape and its adherence to regulatory requirements in its operations and ownership structure.

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.