Suryoday Small Finance Bank reported a 33% year-on-year growth in gross advances to ₹14,374 crore for the quarter ended June 30, 2026. While retail deposits grew by 38.5%, the bank's Gross NPA ratio saw a slight sequential increase to 6.6%.
What Happened
Suryoday Small Finance Bank Ltd. released its provisional business update for the first quarter of the 2026-27 financial year. The bank reported that its total gross advances reached ₹14,374 crore, representing a 33% growth compared to the same period last year. Total deposits also grew by 29% year-on-year, standing at ₹14,634 crore as of June 30, 2026. This data provides an early snapshot of the bank's performance before the full quarterly financial results are audited and released.
Deposit Growth And CASA Mix
The bank’s deposit growth was led by retail customers, with retail deposits climbing 38.5% year-on-year to ₹12,781 crore. Notably, the bank saw a 53.4% rise in its Current Account Savings Account (CASA) deposits, which reached ₹3,072 crore. Despite this strong growth in absolute terms, the CASA ratio—the proportion of deposits held in low-cost savings and current accounts—dipped slightly to 21% from 22.6% in the previous quarter. For banks, a higher CASA ratio is generally preferred as it provides cheaper funds for lending.
Asset Quality And Risk Management
Asset quality, a key monitorable for small finance banks, showed mixed trends. The Gross Non-Performing Asset (GNPA) ratio was 6.6% at the end of June 2026, slightly higher than the 6.5% reported in the previous quarter but better than the 8.5% recorded a year ago. The bank continues to utilize the Credit Guarantee Fund for Micro Units (CGFMU) scheme to manage risk, with approximately 98% of its inclusive finance portfolio now covered by this government-backed guarantee.
The CGFMU Recovery Factor
The bank reported Gross NPAs of ₹931 crore, against which it has provisions of ₹372 crore, resulting in net NPAs of ₹559 crore. A significant part of the bank's risk mitigation strategy involves claims under the CGFMU scheme. The bank confirmed it has already received ₹387 crore under these claims, with another ₹134 crore still pending. The speed at which these remaining funds are recovered may influence the bank's net non-performing asset levels in future quarters.
What Investors Should Track
Investors may look toward the upcoming full quarterly results to understand how these advances translated into net interest income and overall profitability. Key areas to monitor include the sustainability of deposit growth, the trend in the CASA ratio, and any further movement in the GNPA ratio. Additionally, the pace of CGFMU claim settlements will remain an important factor in evaluating the bank's balance sheet strength and cash recovery efficiency.