Suryoday SFB Q1 FY26: Advances up 20%, profit falls

What Suryoday SFB reported for the June 2025 quarter

Suryoday Small Finance Bank said it began Q1 FY26 with growth in advances and deposits, alongside softer profitability compared with the year-ago quarter. The bank announced unaudited financial results for the quarter ended June 30, 2025 from Navi Mumbai on July 24, 2025.

The operating and balance sheet commentary highlighted stronger lending momentum and higher deposit mobilisation, led by retail and digital channels. At the same time, the income table for the June 2025 quarter showed a decline in net interest income and net profit on a year-on-year basis.

Market participants also reacted to the business update, with the stock reported up 2.68% to ₹141.56 following the announcement of advances growth.

Key profitability indicators for Q1 (June 2025)

For the quarter ended June 2025, net interest income (NII) was reported at ₹247.14 crore. This compared with ₹293.23 crore in the June 2024 quarter, a year-on-year decline of 15.72%.

Non-interest income for the bank was ₹108.65 crore in June 2025, higher than ₹70.15 crore in June 2024, translating into a 54.88% increase year-on-year. Net income for the June 2025 quarter was ₹35.28 crore, compared with ₹70.06 crore in June 2024, a year-on-year decline of 49.64%.

The same table also provided March 2026 figures for context: NII of ₹314.77 crore and net income of ₹49.72 crore.

Balance sheet growth: advances and deposits in Q1 FY26

Suryoday SFB reported gross advances of ₹10,846 crore as of June 2025, up 20.0% year-on-year from ₹9,037 crore as of June 2024. Deposits were ₹11,312 crore as of June 2025, up 39.0% year-on-year from ₹8,137 crore as of June 2024.

The bank described the asset-side growth as supported by inclusive finance disbursements returning closer to normal levels and momentum in its “mortgages on the wheels” business. On the liability side, the bank attributed deposit growth to its retail franchise and the digital channel.

It also stated that retail deposits accounted for 82% of overall deposits as of June 2025, compared with 79% a year earlier.

Disbursements show year-on-year pickup

Disbursements for Q1 FY26 were ₹2,261 crore, compared with ₹1,740 crore in Q1 FY25, a rise of 30% year-on-year. Another summary in the provided data also referred to disbursements rising “over ₹2,200 crore” for the quarter.

In the context of Q1 lending, the bank also referenced improved collection performance in the inclusive finance portfolio during April to June 2025. It reported current bucket collection efficiency rising from 97.5% in April 2025 to 98.4% in June 2025.

Deposits mix: retail, bulk, and CASA snapshot

For Q1 FY26, total deposits were ₹11,312 crore. Retail deposits were reported at ₹9,230 crore, while bulk deposits were ₹2,083 crore during the quarter.

CASA deposits were reported at ₹2,003 crore in Q1 FY26. The same business update described CASA as “reasonably stable” at 17.7%, and the bank stated that it aims to return to the 20% range in the coming quarters.

In the market update summary included in the input, CASA deposits were described as down 9% sequentially to ₹2,003 crore, though still up 39% year-on-year.

Asset quality and collection indicators disclosed

Suryoday SFB disclosed a gross non-performing asset (GNPA) ratio of 8.5% as of June 2025 and a net NPA (NNPA) ratio of 5.6%. It also reported GNPA of ₹918 crore and NNPA of ₹593 crore.

Against these NPAs, the bank stated that ₹584 crore was receivable under the CGFMU scheme. It also shared multiple collection efficiency datapoints: current bucket collection efficiency at 98.3%, and collection efficiency (1 EMI adjusted) at 86.4% in Q1 FY26 compared with 94.8% in Q1 FY25, attributing the decline primarily to the inclusive finance portfolio.

A separate Q4 FY26 update: advances and deposits as of March 2026

In another disclosed set of figures in the provided text, Suryoday SFB reported that gross advances rose 29% in the quarter ended March 31, 2026 to ₹13,201 crore, compared with ₹10,251 crore in the year-ago period. Total deposits increased 32% to ₹13,958 crore in Q4 FY26 versus ₹10,580 crore in the corresponding quarter of the previous financial year.

On a sequential basis, gross advances were said to be up 11% from ₹11,885 crore in Q3 FY26, while deposits rose 8% from ₹12,865 crore. For the same March 2026 quarter update, retail deposits were reported at ₹12,003 crore and bulk deposits at ₹1,955 crore.

The bank’s disbursements for that quarter were ₹3,077 crore, compared with ₹2,698 crore in Q3 FY26 and ₹2,101 crore in Q4 FY25. It also reported CASA of ₹3,141 crore for that quarter, up 42% year-on-year and 15% quarter-on-quarter.

Market reaction and what investors typically track next

The stock move referenced in the input was a rise of 2.68% to ₹141.56 after the bank’s advances growth and deposit expansion were highlighted. For investors following small finance banks, the key watch points in the disclosed data include the trajectory of NII and net profit, the mix shift toward retail deposits, and the stated CASA ratio and target range.

The asset quality numbers and collection efficiency indicators also form part of the near-term monitoring set, particularly for portfolios linked to inclusive finance. Separately, the CGFMU receivable amount of ₹584 crore provides an additional context point alongside the absolute GNPA and NNPA values disclosed.

Key figures at a glance

Why this update matters for Suryoday SFB

The June 2025 quarter data shows a clear split between balance sheet growth and profitability trends. Advances and deposits expanded strongly year-on-year, but NII and net income declined versus the year-ago quarter in the numbers provided. The bank’s commentary emphasised that growth was supported by inclusive finance disbursement normalisation and momentum in mortgages on wheels, while deposit growth was driven by retail and digital distribution.

At the same time, the update contains operational indicators that help explain risk and collections, including collection efficiency metrics and NPA ratios. The bank’s stated goal to move CASA back toward the 20% range also provides a measurable operating target referenced alongside the 17.7% reported level.

Conclusion

Suryoday Small Finance Bank’s Q1 FY26 update combined higher advances and deposits with weaker year-on-year NII and net profit for the June 2025 quarter. The bank highlighted retail and digital-led deposit growth, disclosed collection efficiency and NPA metrics, and reiterated an aim to lift CASA toward the 20% range in coming quarters.