Suryoday’s profit jumps 151.7% to 76.5 crore rupees in second quarter
Key Facts
Small finance lender Suryoday reported a net profit of 76.5 crore rupees in the second quarter of fiscal year 2026-2027, up 151.7% year on year, according to the bank’s investor presentation. The result came as total income rose to 829 crore rupees from 600 crore rupees in the year-earlier quarter, according to data reported by Press Trust of India via Rediff. Interest income increased to 702 crore rupees from 520 crore rupees a year earlier. The figures show simultaneous growth in profit and income, while the sources do not attribute the profit increase to any single factor. The bank also reported improved non-performing loan metrics, alongside a decline in its capital adequacy ratio compared with September 2025.
Net interest income stood at 368.8 crore rupees for the quarter, up 42.8% year on year, according to the bank’s presentation. Net interest margin rose to 7.2% from 6.9% in the second quarter of fiscal year 2025-2026. Net interest income measures the difference between a bank’s lending income and what it pays on deposits and funding, while the margin expresses that difference as a share of interest-earning assets. Growth in both measures adds context to the reported rise in interest income to 702 crore rupees from 520 crore rupees a year earlier. The presentation did not specify how much the improvement in margin contributed to profit growth, so the figures remain parallel indicators of banking activity during the quarter.
On the balance sheet, gross advances reached 14,972 crore rupees, up 34.6% year on year, while deposits stood at 16,184 crore rupees, up 35%, according to the investor presentation. This means deposits and advances grew at a similar pace in the second quarter, with deposits increasing slightly faster based on the percentages reported by the bank. Deposits are important for funding lending, while advances reflect the volume of financing the bank extended to customers. The bank guided for growth of between 30% and 35% in both deposits and advances in fiscal year 2026-2027. The target range places the growth recorded during the quarter in the context of the bank’s fiscal-year goals, without guaranteeing that they will be achieved.
Asset-quality metrics improved compared with the year-earlier period. Gross non-performing assets fell to 2.97% of gross advances as of September 30, 2026, from 5.93% at the end of the second quarter of the previous fiscal year, according to data from Press Trust of India via Rediff. Net non-performing assets declined to 1.54% of net advances from 3.80% a year earlier. In the bank’s presentation, gross non-performing assets amounted to 438 crore rupees and net non-performing assets to 224 crore rupees in September 2026. The bank said 181 crore rupees of these dues were covered by amounts receivable under the CGFMU programme. The decline in the ratios accompanied higher total income and profit, but the sources do not establish that improved asset quality directly caused profit growth.
Provisions and contingencies edged up to 41 crore rupees in the quarter from 40 crore rupees in the same quarter a year earlier, according to figures reported by Press Trust of India via Rediff. The limited change indicates that provisions remained close to their year-earlier level, alongside the recorded decline in non-performing loan ratios. By contrast, the capital adequacy ratio fell to 19.37% from 23.41% on September 30, 2025. The ratio measures a bank’s ability to cover risks with available capital, adding a different dimension to results that included profit growth and improved asset quality. The source did not link the decline to a specific cause and did not explain the size of the change in these data.
The bank set a target return on assets of between 1.3% and 1.4%, and a return on equity of between 13% and 14% for fiscal year 2026-2027, according to the investor presentation. These ranges add to its guidance for deposit and advances growth of between 30% and 35% each, and provide the profitability and growth measures the bank has targeted for the year. It also announced that a management call with analysts and investors to discuss second-quarter and first-half results was scheduled for October 30, 2026, at 11 a.m. India time. The call gives participants an opportunity to discuss the reported results and guidance directly with the bank’s management. The bank had made links to the second-quarter fiscal 2026-2027 results and the related investor presentation available on its investor-relations page.