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Suryoday SFB expects 30-35% asset growth, 40% growth in deposits in FY25
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
On Thursday, May 9, Suryoday SFB announced a 56.3% increase in net profit, amounting to ₹60.8 crore for the fourth quarter ending on March 31, 2024. According to a regulatory filing, this marks a significant rise from the ₹38.9 crore net profit reported in the same quarter last year.
Suryoday Small Finance Bank (SFB) is expecting its assets to grow at least 30% in the financial year 2025, and it is also confident about a 40% growth in deposits in the same year.
In an exclusive interview with CNBC-TV18, SFB Managing Director & CEO Baskar Babu Ramachandran said that he is confident of the bank’s performance, anticipating a substantial asset growth of 30-35% alongside 40% increase in deposits for the upcoming financial year.
However, Ramachandran also mentioned a slight moderation in net interest margins (NIMs), projecting a shift from the current 10-10.5% range to approximately 10%. This adjustment, he explained, is part of the bank’s strategy to transition from unsecured loans to more secured lending practices.
The SFB chief outlined the bank’s target for the current account savings account (CASA) ratio, saying that it is aiming for this to comprise 23-25% of total deposits by the end of the fiscal year.
Also Read | Suryoday SFB Q4 Update: Gross advances up 41%, total deposits jump 50%
Addressing concerns over credit quality, he assured stakeholders that the bank is well-prepared, estimating credit costs to remain at a manageable 2% for FY25.
Ramachandran emphasised that the bank’s capital adequacy stands at a comfortable level, indicating that they are not currently considering a capital raise.
On Thursday, May 9, Suryoday SFB announced a 56.3% increase in net profit, amounting to ₹60.8 crore for the fourth quarter ending on March 31, 2024. According to a regulatory filing, this marks a significant rise from the ₹38.9 crore net profit reported in the same quarter last year.
The current market capitalisation of the company is ₹2,192 crore.
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