Suryoday Small Finance Bank (SFB) has reported a standalone net profit decline of 9% to Rs 34.12 crore for the quarter ended September (Q2FY23) compared to Rs 37.53 crore in the corresponding quarter of the previous year. The bank’s total income fell 6.2% to Rs 234.12 crore in Q2FY23, compared to Rs 250.33 crore in Q2FY22.
The bank’s asset quality continued to improve, with gross non-performing assets (NPAs) falling to 4.13% of gross advances, compared to 4.58% in the same period last year. Net NPAs stood at 2.45%, down from 2.65% in the previous year.
Suryoday SFB’s operating expenses increased 14.1% to Rs 111.04 crore, driven by increased provisions and expenses. Provisions and contingencies rose 24.1% to Rs 23.14 crore during the quarter.
Despite the decline in net profit, the bank’s net interest income increased 3.1% to Rs 124.56 crore in Q2FY23, driven by an increase in net interest income from loans. The bank’s capital adequacy ratio stood at 36.42%, above the minimum requirement of 15%. The bank’s financial performance was impacted by the high competition in the small finance banking space, increasing operational costs, and the COVID-19 pandemic.