Suryoday SFB Q1 Review - Business Momentum Improves; Asset Quality Deteriorates: ICICI Securities
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ICICI Securities Report
Suryoday Small Finance Bank Ltd. reported net loss of Rs 477 million in Q1 FY22 impacted by higher provisions at Rs 1.1 billion (~2.75% of assets under management) versus Rs 0.52 billion in Q4 FY21.
Lower interest reversal at Rs 78 million versus Rs 658 million in Q4 FY21 resulted in sharp more than 100% QoQ growth in net interest income.
Opex was down 5% QoQ which, coupled with strong revenue recovery, led to a positive pre provision operating profit at Rs 540 million versus a negative Rs 52 million in Q4 FY21.
Suryoday SFB's disbursements fell 66% QoQ to Rs 3.6 billion, but revived to Rs 3.6 billion in July 2021 and sustained in August 2021.
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