Suryoday Small Finance Bank Q1 - Credit Cost Remains Elevated, Trend Likely To Reverse In H2: ICICI Securities
Suryoday Small Finance Bank Q1 Review - Credit Cost Remains Elevated, Trend Likely To Reverse In H2: ICICI Securities
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ICICI Securities Report
Suryoday Small Finance Bank Ltd.’s Q1 FY23 financial performance is a continuation of its earlier articulated strategy of cleaning Covid-related stress during H1 FY23 and by H2 FY23 achieve business normalcy.
While credit cost remained elevated at 5.4% (annualised), the same was lowest in the last five quarters. Business seasonality and process migration, as per revised micro finance institution regulation, resulted in 4% QoQ decline in microfinance disbursements, while gross disbursements grew (muted) 3% QoQ.
Overall assets under management grew 1% QoQ to Rs 51.3 billion as on June 2022. Total stress (gross non-performing loan plus standard restructured book) declined to 16% in Q1 FY23 from 22.2% in Q4 FY22.
Suryoday SFB's total write-offs stood at Rs 1.3 billion during Q1 FY23 and cumulative at Rs 3.4 billion during FY21-22.
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