Navi Mumbai, 24^th July 2025: Suryoday Small Finance Bank Limited has announced its unaudited financial results for the quarter ended 30th June 2025.

Business Highlights: Q1 FY26

• Gross Advances stood at Rs. 10,846 Cr as on June’25 as compared to Rs. 9,037 Cr as on June’24, an increase of 20.0% YoY

• Disbursements stood at Rs. 2,261 Cr in Q1 FY26 as compared to Rs. 1,740 Cr in Q1 FY25, increase of 30% YoY

• Deposits stood at Rs. 11,312 Cr as on June’25 as compared to Rs. 8,137 Cr as on June’24, an increase of 39.0% YoY

• Current bucket Collection Efficiency stood at 98.3%

• Collection Efficiency (1 EMI adjusted) stood at 86.4% in Q1 FY26 as compared to 94.8% in Q1 FY25, primarily because of Inclusive Finance portfolio.

Financial Highlights: Q1 FY26

• Total income decreased by 2.1% YoY from Rs. 363.4 Cr to Rs. 355.8 Cr

• Net interest income (NII) decreased by 15.7% YoY from Rs 293.2 Cr to Rs 247.1 Cr

• Pre-provision operating profit (PPOP) decreased by 24.5% YoY from Rs. 144.3 Cr to Rs. 108.9 Cr

• Cost of Funds stood at 7.9% in Q1 FY26 as compared to 7.6% in Q1 FY25

• Cost to income stood at 69.4% in Q1 FY26 as compared to 60.3% in Q1 FY25

• Profit After Tax (PAT) stood at Rs. 35.3 Cr in Q1 FY26 as against Rs. 70.1 Cr in Q1 FY25

Commenting on the performance, Mr. Baskar Babu Ramachandran, MD & CEO, Suryoday Small Finance Bank, said:

The Bank started quarter Q1 FY26 on a positive note in terms of growth in gross advances and deposits with gross advances, as on June 30,2025, at Rs. 10,846 crore and deposits crossing Rs. 11,000 crore and stood at Rs. 11,312 crore. This growth underscores the bank’s continued progress in expanding its balance sheet while maintaining focus on portfolio quality.

The non-IF (non-Inclusive Finance) book has now crossed 52% of total advances, marking a structural shift in the portfolio mix. This shift is primarily led by strong growth in the retail secured asset franchise, especially in the mortgages and wheels segments, both of which registered substantial traction during the quarter.

While the external operating environment in the microfinance sector remains volatile, the Bank has proactively managed credit risk. As of June 2025, Gross NPA stood at 8.5%, with GNPA at Rs. 918 crore and NNPA at Rs. 593 crore. The expected CGFMU claim receivable is ~ Rs. 584 crore. Considering the CGFMU coverage ~ 100% of NNPA is fully covered. Further, the Bank has received Rs. 55.67 crore in June 2025, towards its second interim claim under the CGFMU Scheme (Base Year 2022–23) from the National Credit Guarantee Trustee Company (NCGTC). Also, the Bank had proactively implemented MFIN guardrails 2.0 in November 2024 itself, well ahead of the stipulated timeline of April 2025. The portfolio sourced post November 2024 is better placed both on asset quality front and collection efficiency front.

On the liability side, deposits grew by 39% YoY, led by sustained momentum in the retail franchise and deepening of digital distribution channels. The CASA ratio stood at 17.7%, which is granular and retail-focused, CASA in value grew by 39.5% YoY.

The microfinance sector’s stress has continued to weigh on the Net Interest Income (NII) and credit costs, thereby impacting profitability for the quarter. However, with improved collection efficiency in Inclusive Finance and the underlying strength of the Bank’s diversified portfolio-especially the secured retail and MSME segments-positions it well for improved performance going forward.

The Bank is seeing early traction in MSME lending, a segment that is expected to contribute meaningfully over the medium term. This, along with continued expansion in mortgages and wheels, is expected to further increase the share of secured lending in the overall portfolio.

Looking ahead, the Bank remains confident in its strategy of continuing focus on individual loans (Vikas Loan) in Inclusive Finance, diversifying the asset mix, strengthening the deposit franchise, and leveraging digital platforms. The investments made in credit protection mechanisms, customer acquisition through digital platforms, and focused execution in priority segments are expected to support consistent and profitable growth through FY26 and beyond.

About Suryoday Small Finance Bank Limited:

Suryoday Small Finance Bank Limited is a scheduled commercial bank. Commencing its operations as an NBFC and for over a decade with a clear focus on serving customers in the unbanked and underbanked segments and promoting financial inclusion. Pursuant to receipt of the RBI Final Approval, Suryoday started its operations as an SFB on January 23, 2017. Suryoday is among the leading SFBs in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020. The bank has a wide presence across 15 states and UTs across India through its 710 banking outlets, with a strong presence in Maharashtra, Tamil Nadu and Odisha. We offer a wide array of services to our customers, through our array of asset and liability products, via our multiple delivery channels. Suryoday SFB is listed on NSE and BSE.

For more details, please visit,www.suryodaybank.com

For more information, please contact:

Suryoday Small Finance Bank Limited CIN: L65923MH2008PLC261472

Mr. Himadri Das

himadri.das@suryodaybank.com

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