Suryoday SFB share plummets 7% after sluggish Q3 show; net profits drop 41%

Suryoday Small Finance Bank share slipped 7.44 per cent at Rs125 a piece on the BSE in Friday’s intraday trade. This came after the small finance bank reported a 41.8 per cent year-on-year decline in net profit for Q3 FY25, which dropped to Rs 33.3 crore from Rs 57.2 crore in the same quarter last year. Despite this, the bank recorded a 9.2 per cent increase in net interest income (NII), which rose to Rs 268.3 crore, compared to Rs 245.7 crore in Q3FY24.

 

The bank's asset quality showed signs of deterioration during the quarter, with gross non-performing assets (NPAs) rising sharply to 5.53 per cent, up from 3.03 per cent in the previous quarter.

 

Profitability was also impacted by a 31 per cent increase in total expenditure, which climbed to Rs 456 crore.

 

In terms of growth, the bank’s gross advances grew by 25.8 per cent year-on-year, reaching Rs 9,563 crore as of December 2024. This growth was largely driven by an increase in secured loan segments such as vehicle and housing loans.   ALSO READ: This Mukul Agrawal portfolio stock zooms 26% in 2 days on strong Q3

 

However, the microfinance portfolio saw a 25 per cent decline on a quarter-on-quarter basis, as the bank adhered more strictly to industry guidelines.

 

Deposits saw a significant rise of 49.7 per cent year-on-year, reaching Rs 9,708 crore, with retail deposits accounting for 81 per cent of the total. However, the current and savings account (CASA) ratio remained relatively low at 19.5 per cent.

 

On the equities front, Suryoday Small Finance Bank share price has underperformed the market, falling 29 per cent in the last six months, while losing 21 per cent in the last one year. In comparison, the BSE Sensex has slipped 4.4 per cent in the last six months, while rising 7.8 per cent in the last one year.   ALSO READ: Ujjivan SFB shares drop 6% after weak Q3 performance; profits dive 64%

 

Suryoday Small Finance Bank has a total market capitalisation of Rs 1,359.91crore.  Its shares are listed at a price to earnings multiple of 6.15 and at an earning per share of Rs 21.97.

 

At 11:36 AM, the stock price of the company fell by 5.26 per cent at Rs 127.95 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.32 per cent to 76,764.61 level.