Suryoday Bank reports strong Q2 FY26 growth, improved asset quality

Suryoday Small Finance Bank reported substantial growth in its Q2 FY26 results, with gross advances reaching ₹11,544 crore, marking a 23% year-over-year increase. Disbursements for the quarter also saw a significant rise of 49% year-over-year, totaling ₹2,430 crore. The bank’s total deposits grew by 35% year-over-year to ₹11,991 crore, with retail deposits contributing ₹10,316 crore, a 45% increase from the previous year. CASA deposits experienced robust growth of 57% year-over-year, reaching ₹2,477 crore and representing 20.7% of total deposits.

The bank's asset quality showed improvement due to a significant claim received. Suryoday Bank received approximately ₹314 crore from CGFMU during Q2 FY26, covering 100% of the claim made. This boosted the provision coverage ratio (PCR) to an estimated ~62%, and net non-performing assets (NNPA) are projected to decrease to ~3.8%. As of September 2025, about 98% of the bank's Inclusive Finance portfolio is covered under the CGFMU Scheme.

Gross NPA for Q2 FY26 stood at 9.3%, compared to 8.5% in the previous quarter and 2.9% year-over-year. However, NNPA for Q2 FY26 is approximately 3.8% (net of CGFMU claims), down from 5.6% in Q1 FY26, with over 90% of this NNPA covered under CGFMU.