Suryoday Small Finance Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Suryoday Small Finance Bank Ltd filed with BSE on 13 May 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 Q4 and FY26 results showing improved collections and reduced slippages in its inclusive finance portfolio, alongside continued growth in commercial vehicle and mortgage books. Net total income for FY26 rose 10.2% year-on-year to Rs 1,458 crores and profit after tax increased to Rs 152 crores from Rs 115 crores. Management discussed plans for CGFMU claims, credit costs, NIM trends and a potential capital raise during the analyst Q&A.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Disbursements (inclusive finance): ₹500 crores per month (Q4 FY26)
p. 3
“disbursements have largely returned to earlier run rates of ₹500 crores per month of disbursements”
Baskar Babu R., page 3 of the filed PDF · View the filing
Slippages (inclusive finance): approximately ₹74 crores (Q4 FY26)
p. 3
“slippages reduced meaningfully to approximately ₹74 crores from ₹116 crores in the previous quarter”
Baskar Babu R., page 3 of the filed PDF · View the filing
Collection efficiency (inclusive finance, current book): 99.7% (Q4 FY26)
p. 3
“Collection efficiency also continued to improve with the current book for inclusive finance portfolio inching towards 99.7%”
Baskar Babu R., page 3 of the filed PDF · View the filing
CGFMU coverage: close to 99%
p. 3
“close to 99% of the inclusive finance portfolio remains covered under the CGFMU scheme”
Baskar Babu R., page 3 of the filed PDF · View the filing
CGFMU P&L mitigation: approximately ₹650 crores
p. 3
“The CGFMU initiative has played a significant role during the stress cycle and has provided mitigation of approximately ₹650 crores in terms of P&L impact”
Baskar Babu R., page 3 of the filed PDF · View the filing
Commercial vehicle finance portfolio: ₹1,819 crores (March 2026)
p. 4
“The commercial vehicle finance portfolio grew from ₹1,336 crores in March 2025 to ₹1,819 crores in Mar'26, registering a healthy year-on-year growth of 36%”
Baskar Babu R., page 4 of the filed PDF · View the filing
Mortgage book: ₹3,013 crores (March 2026)
p. 4
“Our mortgage book, including micro home loan portfolio expanded from ₹2,187 crores in March 2025 to ₹3,013 crores as of Mar'26, growing by 38% year-on-year”
Baskar Babu R., page 4 of the filed PDF · View the filing
GNPA ratio: 6.5% (March 2026)
p. 4
“As of Mar'26, our GNPA ratio stood at 6.5%”
Baskar Babu R., page 4 of the filed PDF · View the filing
GNPA: ₹864 crores (March 2026)
p. 4
“As of Mar'26, GNPA was ₹864 crores”
Baskar Babu R., page 4 of the filed PDF · View the filing
NNPA: ₹542 crores (March 2026)
p. 4
“NNPA was ₹542 crores against which ₹508 crores is receivable from CGFMU”
Baskar Babu R., page 4 of the filed PDF · View the filing
Deposits: ₹13,994 crores (March 2026)
p. 4
“our deposits expanded to ₹13,994 crores as of Mar'26, reflecting a year-on-year growth of 32.3% from ₹10,580 crores”
Baskar Babu R., page 4 of the filed PDF · View the filing
Retail deposits share: 86%
p. 4
“Retail deposits continue to strengthen with their share improving to 86%”
Baskar Babu R., page 4 of the filed PDF · View the filing
CASA ratio: 22.6%
p. 4
“Our CASA ratio stood at 22.6%, underscoring improving deposit granularity and franchise depth”
Baskar Babu R., page 4 of the filed PDF · View the filing
Net total income: ₹1,458 crores (FY26)
p. 4
“Net total income for FY26 increased by 10.2% year-on-year from ₹1,323 crores to ₹1,458 crores”
Baskar Babu R., page 4 of the filed PDF · View the filing
Profit after tax: ₹152 crores (FY26)
p. 4
“Profit after tax for the year stood at ₹152 crores versus ₹115 crores last year”
Baskar Babu R., page 4 of the filed PDF · View the filing
Capital adequacy ratio: 20.5%
p. 4
“Our bank continues to maintain strong capital adequacy ratio of 20.5%, well above the regulatory requirement of 15%”
Baskar Babu R., page 4 of the filed PDF · View the filing
Credit on UPI outstanding: ₹200 crores
p. 9
“Currently, it's approximately around ₹200 crores is what we have as an outstanding at the end of the billing cycle”
Baskar Babu R., 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.
Slippages — ₹75 crores to ₹90 crores per quarter · FY27
stated firmly by Kanishka Chaudhary
p. 8
“We would be targeting somewhere -- anywhere between ₹75 crores to ₹90 crores as a whole for the bank on a quarter-on-quarter basis”
Kanishka Chaudhary, page 8 of the filed PDF · View the filing
Cost to income ratio — 67% to 68% · next year
stated firmly by Kanishka Chaudhary
p. 9
“I think on a full year basis in the coming year, we will be targeting somewhere around 67% to 68%. So the goal is to come below 70% for sure.”
Kanishka Chaudhary, page 9 of the filed PDF · View the filing
CGFMU expense — ₹100 crores to ₹110 crores · this year
stated firmly by Kanishka Chaudhary
p. 9
“It will be in the range of around ₹100 crores, ₹110 crores.”
Kanishka Chaudhary, page 9 of the filed PDF · View the filing
CGFMU claim amount — ₹450 crores to ₹550 crores · FY27
stated conditionally by Kanishka Chaudhary
p. 7
“we will be claiming somewhere in the region of ₹450 crores to ₹550 crores”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
PAT — more than around ₹300 crores · FY27
stated firmly by Kanishka Chaudhary
p. 12
“Yes. I mean that's the kind of a target that we have in mind. So with the credit cycle in the MFI industry behind our back, I think that's the kind of number that we are targeting as a bank.”
Kanishka Chaudhary, page 12 of the filed PDF · View the filing
NIM — 8% to 9% · this financial year
stated firmly by Kanishka Chaudhary
p. 16
“I think our NIMs will be range bound between 8% to 9%.”
Kanishka Chaudhary, page 16 of the filed PDF · View the filing
Credit cost — 70 to 80 bps · FY27
stated firmly by Kanishka Chaudhary
p. 18
“I think for the next coming year, our credit cost will be somewhere in the region of 70 to 80 bps.”
Kanishka Chaudhary, page 18 of the filed PDF · View the filing
Slippages ceiling (retail asset) — not to exceed around ₹90 crores per quarter
stated firmly by Baskar Babu R.
p. 17
“what we are looking at as a bank is in terms of not to exceed around ₹90 crores in terms of on a quarter-on-quarter basis in terms of the slippages”
Baskar Babu R., page 17 of the filed PDF · View the filing
Asset growth — around 20% to 30%
stated firmly by Baskar Babu R.
p. 18
“we will grow, we're targeting to grow at around closer to 20% to 30% of the asset size”
Baskar Babu R., page 18 of the filed PDF · View the filing
Retail asset book credit loss — CV not more than 0.75%, mortgage not more than 0.5%, MHL maximum 1% to 1.5%
stated conditionally by Himadri Das
p. 13
“credit loss nowhere in all the portfolio, it doesn't, it won't exit in CV not more than 0.75% and not in mortgage or MHL also, it won't, in mortgage at least, it won't be more than 0.5%. And in MHL, it can be maximum 1% to 1.5%.”
Himadri Das, page 13 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 expects par numbers to improve over the next two quarters and guided to around 1.25% for the total retail asset book.
Answered by Kanishka Chaudhary
Asked by Shailesh Kanani: How should retail asset slippages be viewed on a steady-state basis given the CV Odisha issue and mortgage high-ticket cases?
p. 6
“I would look at anywhere between 1.25% for the portfolio overall put together.”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
Management said about 50% of net incremental deposit flows are coming from the digital channel and expect this to continue.
Answered by Kanishka Chaudhary
Asked by Shailesh Kanani: What is the impact of digital deposit sourcing on OpEx and can it be quantified?
p. 7
“about 50% of our net incremental flows are coming from the digital channel, and that will continue for this year as well”
Kanishka Chaudhary, page 7 of the filed PDF · View the filing
Management explained the paying book base increases in Q1 and PSLC sales typically occur in Q1, supporting the higher ROA guidance.
Answered by Kanishka Chaudhary
Asked by Saumil Shah: How confident is management in achieving the ROA targets given Q4 was the strongest quarter yet Q1 guidance is higher?
p. 8
“a 1.2% ROA in Q1 vis-a-vis 1.1% in Q4 this year shouldn't be a challenge”
Kanishka Chaudhary, page 8 of the filed PDF · View the filing
Management said the CGFMU is a fully funded trust with an internal turnaround time of around 60 days, and past experience has been within that window.
Answered by Baskar Babu R.
Asked by Darshil Jhaveri: How quickly does the government/trust process CGFMU claims once submitted?
p. 12
“our experience fairly has been good. They will have obviously their own internal turnaround times for making the claim, which I presume will be around 60 days.”
Baskar Babu R., page 12 of the filed PDF · View the filing
Management confirmed cost of funds have hardened and elevated rates have not eased as in prior years, prompting a mix of deposits and refinancing.
Answered by Kanishka Chaudhary
Asked by Darshil Jhaveri: Is the competitive environment putting pressure on cost of deposits and yields?
p. 12
“Cost of funds have definitely hardened. It's becoming increasingly difficult to raise money.”
Kanishka Chaudhary, page 12 of the filed PDF · View the filing
Management said waivers have had limited widespread impact, with only localized pockets affected before recovering.
Answered by Baskar Babu R.
Asked by Rahul Kumar: What has been the historical impact of farm loan waivers on asset quality?
p. 13
“Industry has not seen any huge impact in the last 2 cycles of the last 6 years, whether it was a demand, whether it was COVID or whether even today's microfinance crisis when it happened because of various reasons which the industry is still figuring it out.”
Baskar Babu R., page 13 of the filed PDF · View the filing
Management attributed this to a large ARC write-off base effect in the prior year, elevated CV market stress, and Karnataka mortgage stress that has since improved.
Answered by Sasidhar Vavilala
Asked by Rahul Kumar: Why did Stage 2 assets in retail rise versus Q3?
p. 14
“Our 61 to 90 bucket collection efficiency has actually significantly improved in the last 2 months. So that is also one of the reasons why Stage 2 is a little elevated.”
Sasidhar Vavilala, page 14 of the filed PDF · View the filing
Management said no claim was submitted in April or planned for May, and clarified fundraising has not been deferred but is being planned with Tier 2 as the likely first step.
Answered by Baskar Babu R.
Asked by Amey Kulkarni: Has the bank already submitted a CGFMU claim in April, and why has fundraising been postponed?
p. 16
“As of now, whether it's April, we have not made a claim, I can say that. In May, not likely.”
Baskar Babu R., page 16 of the filed PDF · View the filing
Management agreed there will be an uptick in NIM given NIMs are currently suppressed.
Answered by Kanishka Chaudhary
Asked by Arvind Shah: Will NIM increase disproportionately as the NPA book converts to paying book without added funding cost?
p. 16
“Yes, you are right. There will be an uptick in NIMs because if you look at NIMs as they are today, they are suppressed by around 0.50 or thereabouts.”
Kanishka Chaudhary, page 16 of the filed PDF · View the filing
Management said the bank is targeting 20-30% asset growth and sees room given smaller MFIs, not large ones, have been constrained by liquidity.
Answered by Baskar Babu R.
Asked by Jagdeep Singh: Does the bank have room to increase disbursements given reported unmet demand in the industry?
p. 18
“given the unmet demand being huge, is not something we have not seen at this point of time”
Baskar Babu R., page 18 of the filed PDF · View the filing
Risks flagged
Localized commercial vehicle stress in Odisha
p. 6
“there is one localized issue in the state of Odisha, which we are trying to address even as we speak”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
High-ticket mortgage slippages requiring SARFAESI resolution
p. 6
“There are a couple of slippages on the high ticket cases, which we are currently in the process of resolving and getting resolutions through SARFAESI.”
Kanishka Chaudhary, page 6 of the filed PDF · View the filing
Potential impact of rising diesel prices on commercial vehicle borrowers
p. 10
“The only segment which can get impacted, which will be the commercial vehicle, if there's an increase in diesel prices substantially beyond 10% or 15%, likely that there could be an impact”
Baskar Babu R., page 10 of the filed PDF · View the filing
Hardening cost of funds and competitive pressure for deposits
p. 12
“So there is a rush for deposits, especially among the small finance bank and the midsized banks as well.”
Kanishka Chaudhary, page 12 of the filed PDF · View the filing
Farm loan waivers and MFI loan waiver spillover in pockets
p. 17
“The farm loan waiver, anything announced gets kind of treated as an MFI loan, which has happened at least in one state.”
Baskar Babu R., page 17 of the filed PDF · View the filing
Karnataka mortgage/MHL portfolio stress
p. 13
“mortgages for the old portfolio of mortgages and MHL Karnataka about 4% of the portfolio got elevated stress in Karnataka”
Sasidhar Vavilala, page 13 of the filed PDF · View the filing
Trading at discount to book value complicating equity fundraise
p. 11
“we continue to see ourselves growing at 30% plus and our CRAR at around 20%, which is our internal comfort zone”
Kanishka Chaudhary, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.