Suryoday Small Finance Bank Shares Plummet 7% Amid Q1 Results, PAT Down 50%

Suryoday Small Finance Bank's Q1FY26 results showed a 49.6% decline in net profit to ₹35.3 crore, compared to ₹70.1 crore a year ago. Net interest income declined 15.7% to ₹247.1 crore, and gross advances grew 20% YoY to ₹10,846 crore. Deposits increased 39% to ₹11,312 crore. The bank's GNPA increased 579 bps to 8.5%, and NNPA rose 520 bps to 5.6%. The company's share price fell 6.7% to ₹129.15 per share on BSE.

Suryoday Small Finance Bank (SSFB) reported its Q1FY26 results, revealing a significant decline in net profit, driven by a decrease in net interest income and a rise in non-performing assets (NPAs). The bank's net profit fell by 49.6% to ₹35.3 crore, compared to ₹70.1 crore in the same period last year. This decline can be attributed to a 15.7% drop in net interest income to ₹247.1 crore, despite a 20% year-over-year (YoY) growth in gross advances to ₹10,846 crore [1].

The bank's asset quality deteriorated, with gross non-performing assets (GNPA) increasing by 579 basis points (bps) to 8.5% and net non-performing assets (NNPA) rising by 520 bps to 5.6%. These increases indicate a potential rise in bad loans, which could negatively impact the bank's profitability in the future.

Despite the challenges, SSFB's deposit base grew by 39% to ₹11,312 crore, suggesting that the bank has been successful in attracting new depositors. However, the bank's share price fell by 6.7% to ₹129.15 per share on the BSE, reflecting investors' concerns about the bank's financial health.

In summary, Suryoday Small Finance Bank's Q1FY26 results highlight the bank's struggles with net interest income and asset quality. While the bank has managed to grow its deposit base, the increases in NPAs and the decline in net profit suggest that the bank may face challenges in the coming quarters. Investors should closely monitor the bank's performance and management's efforts to address these issues.

References:
[1] https://www.thehindubusinessline.com/markets/stock-markets/q1-results-highlights-hexaware-tech-bajaj-finance-nestle-sbi-life-insurance-cg-power-adani-energy-canara-bank-indian-bank-kvb-bank-aditya-birla-sun-life-kfin-tech-infosys-tcp-force-motors-24-july-2025/article69846022.ece