Suryoday Small Finance Bank Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Suryoday Small Finance Bank Ltd filed with BSE on 29 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Suryoday Small Finance Bank reported gross advances of INR14,376 crores, up 32.5% year-on-year, and deposits of INR14,634 crores, up 29.4% year-on-year, for Q1 FY27. GNPA stood at 6.5% and NNPA at 1.2%, with adjusted figures at 2.9% and 0.3% after accounting for CGFMU receivables, following INR386 crores of CGFMU claims received during the quarter. Management discussed the transition from JLG to individual loans, growth in secured retail assets such as commercial vehicles and mortgages, and progress in digital businesses including credit line on UPI and digital deposits.
Numbers mentioned
Gross advances: INR14,376 crores (Q1 FY27)
p. 4
“Our gross advances stood at INR14,376 crores, registering a year-on-year growth of 32.5%.”
Baskar Babu R., page 4 of the filed PDF · View the filing
Deposits: INR14,634 crores (Q1 FY27)
p. 4
“Our deposit base stood at INR14,634 crores, reflecting a year-on-year growth of 29.4%.”
Baskar Babu R., page 4 of the filed PDF · View the filing
Retail deposits share: 87.3% (June 2026)
p. 4
“The share of retail deposits stood at 87.3% as of June 2026, supported by both our branch network and our digital sourcing channels.”
Baskar Babu R., page 4 of the filed PDF · View the filing
CASA ratio: 21% (Q1 FY27)
p. 4
“Our CASA ratio stood at 21%, and we continue to focus on granular CASA over the coming quarters.”
Baskar Babu R., page 4 of the filed PDF · View the filing
GNPA: 6.5% (June 2026)
p. 4
“On asset quality, our GNPA stood at 6.5% and NNPA at 1.2% as of June 2026.”
Baskar Babu R., page 4 of the filed PDF · View the filing
CGFMU claims received: INR386 crores (cumulative)
p. 3
“the bank has further strengthened its provision coverage ratio backed by INR 386 crores of CGFMU claims received, thereby enhancing resilience against potential asset quality risks”
Baskar Babu R., page 3 of the filed PDF · View the filing
Digital channel deposits: INR2,222 crores (Q1 FY27)
p. 4
“Deposits sourced to our digital channel stands at INR 2,222 crores with an average daily accretion of INR 6 crores.”
Baskar Babu R., page 4 of the filed PDF · View the filing
Digital MSME loan disbursements: INR59 crores (Q1 FY27)
p. 5
“We also continued to strengthen our digital MSME loan with disbursements of INR59 crores during the quarter, supporting faster customer acquisition and improved service delivery across our retail franchise through our branch network.”
Baskar Babu R., page 5 of the filed PDF · View the filing
Credit cost: 0.8% (Q1 FY27)
p. 6
“So for this quarter, the credit cost is at 0.8%.”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
CLOU convenience fee income: INR18 crores (Q1 FY27)
p. 7
“In this particular quarter, our convenience fee income from the CLOU business has moved to INR18 crores for the quarter.”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
Yield on non-NPA advances: 16.1% (Q1 FY27)
p. 8
“Yes. So if you note what we have indicated is that the yield has moved from 17.2% to 16.1%.”
Kanishka Chaudhary, page 8 of the filed PDF · View the filing
Capital adequacy ratio: 20% (Q1 FY27)
p. 14
“Yes. So at this particular point in time, our capital adequacy fee is 20%.”
Kanishka Chaudhary, page 14 of the filed PDF · View the filing
Slippages (bank level): INR92 crores (Q1 FY27)
p. 9
“So at a bank level, if you look at our slippages, we have improved from INR106 crores to INR92 crores on a quarter-on-quarter basis.”
Kanishka Chaudhary, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Credit cost — 0.8% to 1.00% · FY27
stated firmly by Kanishka Chaudhary
p. 6
“our guidance is that we will be somewhere between to 0.8 to 1.00%, and we stay by that guidance.”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
ROA — 1.6% · Q4 FY27
stated firmly by Kanishka Chaudhary
p. 7
“There is no change in the guidance from what we had indicated at the start of the year.”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
ROE — 1.3% to 1.4%
stated firmly by Kanishka Chaudhary
p. 10
“we will be in the range of 1.3% to 1.4% and we continue with that guidance at the end of the first quarter.”
Kanishka Chaudhary, page 10 of the filed PDF · View the filing
ROE improvement — 0.5% to 1% year-on-year · next couple of years
stated as an aspiration by Baskar Babu R.
p. 10
“the clear endeavor is that we can really inch it up by meaningful and sustainable 0.5% to 1% in terms of ROE year-on-year for the next couple of years and then learn what it takes to deliver consistent performance.”
Baskar Babu R., page 10 of the filed PDF · View the filing
Cost of funds — around 7.5% · rest of the year
stated firmly by Kanishka Chaudhary
p. 7
“Yes. You can expect the cost of fund to be at around 7.5% for the rest of the year.”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
Yield on non-NPA advances — around 17%
stated firmly by Kanishka Chaudhary
p. 8
“Yes, we will be going back to around 17%.”
Kanishka Chaudhary, page 8 of the filed PDF · View the filing
Opex to income ratio — 67% to 70% · FY27
stated firmly by Kanishka Chaudhary
p. 11
“I think if you look at our opex, the kind of target that we have assumed for ourselves to be in the range of around 67% to 70%.”
Kanishka Chaudhary, page 11 of the filed PDF · View the filing
Capital adequacy ratio — 20% to 22%
stated as an aspiration by Kanishka Chaudhary
p. 14
“But yes, I mean 20% to 22% is where we would ideally want to be given the kind of growth that we are having.”
Kanishka Chaudhary, page 14 of the filed PDF · View the filing
Microbanking mix — 48:52
stated firmly by Kanishka Chaudhary
p. 14
“I think so far as microbanking is concerned, we would like to keep to a 48, 52 kind of a mix, right?”
Kanishka Chaudhary, page 14 of the filed PDF · View the filing
Branch additions — around 50 branches · this quarter and next quarter
stated firmly by Baskar Babu R.
p. 11
“We will be adding around closer to 50 branches in this quarter and next quarter.”
Baskar Babu R., page 11 of the filed PDF · View the filing
Mortgage branch presence — 40% to 45% · towards the end of the year
stated as an aspiration by Baskar Babu R.
p. 11
“Intent would be to take it to at least 40% to 45% towards the end of the year.”
Baskar Babu R., page 11 of the filed PDF · View the filing
CLOU customer base — around 12 lakh users · this financial year
stated as an aspiration by Baskar Babu R.
p. 12
“we will be comfortable if we are able to achieve double the customer count during this financial year from closer to 6 lakh users probably to around 12 lakh users.”
Baskar Babu R., page 12 of the filed PDF · View the filing
PAT — INR300 crores plus · FY27
stated firmly by Baskar Babu R.
p. 18
“As of now, no, we are kind of in a very focus in term of INR75 crores per quarter is what we are looking at.”
Baskar Babu R., page 18 of the filed PDF · View the filing
CASA ratio — 21%
stated conditionally by Baskar Babu R.
p. 18
“including probably 20% growth to maintain the CASA ratio even at 21%. It will be challenging, and we'll have to very armor ourselves to ensure that.”
Baskar Babu R., page 18 of the filed PDF · View the filing
PSL income — INR10 crores to INR15 crores · next 2 quarters
stated firmly by Kanishka Chaudhary
p. 6
“I think for the next 2 quarters, you can expect that our PSL income will be around INR15-odd crores -- INR10 crores to INR15-odd crores And Q4 may be somewhere around INR20-odd crores.”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
Additional CGFMU claim — INR15 crores to INR20 crores · current financial year
stated firmly by Kanishka Chaudhary
p. 8
“So we have a very small cohort left to be claimed in the current financial year. It will be somewhere around INR13 crores to INR15 crores.”
Kanishka Chaudhary, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said focus remains on strengthening inclusive finance via individual loans, growing secured assets faster, and expanding digital channels, while remaining cautious about the microfinance cycle and competition.
Answered by Baskar Babu R.
Asked by Sucrit D. Patil: What are the top execution priorities and biggest risks in customer demand or competitive pressure?
p. 5
“The risks, obviously, are in terms of as I said, we continue to be cautious while the microfinance cycle has turned, mainly because of weeding out of the customers who did not have a good track record either circumstantially or otherwise.”
Baskar Babu R., page 5 of the filed PDF · View the filing
CFO said PSL income was elevated this quarter and would normalize to a lower run-rate for coming quarters.
Answered by Kanishka Chaudhary
Asked by Harshit: What is the steady-state other income for FY27 modeling purposes?
p. 6
“So the other income this time you had about INR90-odd crores on account of PSL income.”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
CFO said cost of funds would remain around 7.5% and NIM should be stable at Q1 levels.
Answered by Kanishka Chaudhary
Asked by Deepak Poddar: Is there pressure on cost of funds and how should NIM be viewed?
p. 7
“Yes, yes, very similar to what we are having at the end of Q1.”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
CFO attributed the increase mainly to CLOU business-related expenses growing in line with convenience fee income.
Answered by Kanishka Chaudhary
Asked by Rahul Kumar: What caused the 20% quarter-on-quarter increase in other expenses?
p. 7
“Apart from that, there have been some additional expenses in the technology infra, but the main driver is the CLOU-related expenses.”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
Management said individual loans now form 80% of onboarding and a small remaining cohort of INR15-20 crores is expected to be claimed.
Answered by Senthil Kumar
Asked by Saumil Shah: How is the JLG model shaping up and how much CGFMU claim is left this year?
p. 8
“To that extent that individual loans contribute around 80% of our monthly onboarding.”
Senthil Kumar, page 8 of the filed PDF · View the filing
CFO said bank-level and MFI slippages improved quarter-on-quarter, with some mortgage slippages being worked through legal resolution.
Answered by Kanishka Chaudhary
Asked by Sonal Minhas: Is there a slowdown in recovery given slippage numbers?
p. 9
“So at a bank level, if you look at our slippages, we have improved from INR106 crores to INR92 crores on a quarter-on-quarter basis.”
Kanishka Chaudhary, page 9 of the filed PDF · View the filing
Management said collection efficiency has been largely stable and they do not see stress ahead.
Answered by Baskar Babu R.
Asked by Keshav Karwa: How is collection efficiency trending in the MFI book for July and are there stressed geographies?
p. 10
“We are comfortable in terms of clocking around 99.5%, 99.6%.”
Baskar Babu R., page 10 of the filed PDF · View the filing
CFO reiterated ROE guidance of 1.3% to 1.4% with no change from the start of the year.
Answered by Kanishka Chaudhary
Asked by Shailesh Kanani: What is the steady-state ROE the bank is targeting?
p. 10
“we will be in the range of 1.3% to 1.4% and we continue with that guidance at the end of the first quarter.”
Kanishka Chaudhary, page 10 of the filed PDF · View the filing
CFO indicated an opex target range including technology and branch investments.
Answered by Kanishka Chaudhary
Asked by Ashlesh Sonje: What is the budgeted opex range for FY27 given 30-35% growth?
p. 11
“I think if you look at our opex, the kind of target that we have assumed for ourselves to be in the range of around 67% to 70%.”
Kanishka Chaudhary, page 11 of the filed PDF · View the filing
Management said stabilized yield would be in the 17.2%-17.5% range and no immediate pricing change is foreseen this quarter.
Answered by Kanishka Chaudhary
Asked by Avnish Tiwari: What is the yield on non-NPA advances and is pricing action being considered given tightening costs?
p. 13
“Yes. At this particular point in time, we don't foresee an immediate change in pricing across products.”
Kanishka Chaudhary, page 13 of the filed PDF · View the filing
Management attributed the elevated PAR to fuel price increases and load availability issues, expecting normalization next quarter.
Answered by Senthil Kumar
Asked by Tanay Jain: Why is vehicle finance PAR elevated and is it a stress pocket?
p. 14
“So as such, the PAR has been slightly elevated in the last quarter more because of the fuel prices increase and also in terms of load availability due to the crisis in Middle East.”
Senthil Kumar, page 14 of the filed PDF · View the filing
MD said the shift to individual loans and stricter customer categorization should reduce volatility and improve sustainability of performance.
Answered by Baskar Babu R.
Asked by Deepak Agarwal: Will earnings be more stable in the next cycle given the MFI book is largely insured?
p. 16
“I'm fairly confident that we'll be able to not just deliver good numbers, but consistent numbers across all the coming quarters.”
Baskar Babu R., page 16 of the filed PDF · View the filing
CFO confirmed INR387 crores received this quarter, with another INR15-20 crores expected and INR135-150 crores eligible for future claims.
Answered by Kanishka Chaudhary
Asked by Ankur Kumar: How much CGFMU insurance has been claimed and received, and how much is expected ahead?
p. 17
“Apart from that, additional amount that we will be eligible to claim not this year, but subsequently, will be anywhere between INR135 crores to INR150 crores as things stand today.”
Kanishka Chaudhary, page 17 of the filed PDF · View the filing
MD said no risk currently seen, though Q2 may be a bit subdued due to lower PSL income, offset by growth in the paying book.
Answered by Baskar Babu R.
Asked by Vibhor Talreja: Is there any risk to the INR300 crores plus PAT guidance for the year?
p. 18
“As of now, no, we are kind of in a very focus in term of INR75 crores per quarter is what we are looking at.”
Baskar Babu R., page 18 of the filed PDF · View the filing
Risks flagged
Cautious approach to microfinance cycle recovery to avoid over-aggressive growth
p. 5
“It is extremely important that we do not really take this as a reveal of the cycle and go aggressive.”
Baskar Babu R., page 5 of the filed PDF · View the filing
Intense competition in the sector
p. 5
“The competition will be intense and that is where probably our digital play will be coming to play in creating that customer experience.”
Baskar Babu R., page 5 of the filed PDF · View the filing
Pressure on fixed deposit rates not easing
p. 7
“We continue to see a pressure in the rates for fixed deposits. They have not really come down.”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
Slippages in mortgage business requiring legal resolution
p. 9
“We have had a couple of slippages in our mortgage business and which we are working on for resolution through legal process.”
Kanishka Chaudhary, page 9 of the filed PDF · View the filing
Elevated vehicle finance PAR due to fuel prices and load availability issues from Middle East crisis
p. 14
“the PAR has been slightly elevated in the last quarter more because of the fuel prices increase and also in terms of load availability due to the crisis in Middle East.”
Senthil Kumar, page 14 of the filed PDF · View the filing
Seasonal PAR elevation during monsoon-affected quarter for commercial vehicles
p. 14
“This quarter and generally in the second quarter across the country when you have monsoon activated, the PAR is generally slightly elevated.”
Senthil Kumar, page 14 of the filed PDF · View the filing
Reduced PSL income in coming quarters affecting other income and ROA growth trajectory
p. 9
“We need to be cognizant of the fact that we had INR40 crores of PSL income and in the next 2 quarters, we won't have that kind of PSL opportunities.”
Kanishka Chaudhary, page 9 of the filed PDF · View the filing
Deposit growth and maintaining CASA ratio could be challenging amid overall growth targets
p. 18
“It's not really kind of going to take it. That's 30% growth, including probably 20% growth to maintain the CASA ratio even at 21%. It will be challenging, and we'll have to very armor ourselves to ensure that.”
Baskar Babu R., page 18 of the filed PDF · View the filing
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