ADVERTISEMENT

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

<div class="paragraphs"><p>A person holding Indian rupee banknotes for photograph.&nbsp;(Photo: Usha Kunji/BQ Prime)</p></div>
A person holding Indian rupee banknotes for photograph. (Photo: Usha Kunji/BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Suryoday Q1FY23 Results.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.