Latest news with #SFB
Business Standard
04-07-2025
- Business
- Business Standard
AU SFB total deposits rises 31% YoY to Rs 1.27 lakh crore in Q1
AU Small Finance Bank (SFB) said that its total deposits jumped 31.3% to Rs 1,27,700 crore as of 30 June 2025 compared with Rs 97,290 crore as of 30 June 2024. The bank's total deposits increased by 2.8% compared with Rs 1,24,269 crore reported in the quarter ended 31 March 2025. The CASA ratio declined to 29.2% as of 30 June 2025, compared to 32.9% as of 30 June 2024 and remained unchanged from 29.2% as of 31 March 2024. Gross advances of the bank as of 30 June 2025 stood at Rs 1,11,620 crore, up 23.1% YoY and up 2.6% QoQ. The gross loan portfolio increased 17.9% year-on-year to Rs 1,17,630 crore as of 30 June 2025 and rose 1.7% quarter-on-quarter from Rs 1,15,704 crore as of 31 March 2025. The securitised/assigned loan portfolio along with IBPC stood at Rs 6,010 crore as of 30 June 2025, compared to Rs 9,089 crore as of 30 June 2024 and Rs 6,926 crore as of 31 March 2024. AU Small Finance Bank is engaged in providing a range of banking and financial services, including retail banking, wholesale banking, treasury operations, and other services. The companys standalone net profit jumped 40.8% to Rs 528.45 crore in Q3 FY25 as compared with Rs 375.25 crore in Q3 FY24. Total income increased 48.9% YoY to Rs 4,731.89 crore in Q3 FY25. Shares of AU Small Finance Bank rose 0.95% to Rs 819 on the BSE
Business Standard
04-07-2025
- Business
- Business Standard
Suryoday SFB gains as gross advances jump 20% YoY in Q1 FY26
Suryoday Small Finance Bank (SFB) added 2.68% to Rs 141.56 after the bank's gross advances increased 20% to to Rs 10,846 crore in Q1 FY26, as compared to Rs 9,037 crore posted in Q1 FY25. Sequentially, gross advances rose 6% to Rs 10,251 crore posted in Q4 FY25. Disbursements for Q1 FY26 stood at Rs 2,261 crore, up 30% YoY and 8% QoQ. The banks total deposits grew by 39% YoY and 7% QoQ to Rs 11,312 crore reported in Q1 FY26. Retail deposits increased 39% YoY and 8% QoQ to Rs 9,230 crore and bulk deposits stood at Rs 2,083 crore during the quarter, up 21% YoY and 4% QoQ. The bank's CASA (Current Account Savings Account) deposits stood at Rs 2,003 crore in Q1 FY26, registering a growth of 39% in YoY and down 9% YoY. The CASA ratio remained unchanged at 17.7% in Q1 FY26, compared to the same figure of 17.7% in Q1 FY25. However, it showed a decline from 20.9% posted in Q4 FY25. The CE - 1 EMI% stood at 94.1% in Q1 FY26, compared to 93.4% in Q1 FY25, and 98.8% in Q4 FY25. Meanwhile, the CE - Overall% was recorded at 97.1% in Q1 FY26, showing a decline from 99.7% in Q4 FY25, but still higher than 101.0% in Q1 FY25. The gross non-performing assets (GNPA) ratio stood at 8.5% in Q1 FY26, compared to 7.1% in Q4 FY25, reflecting a Q-o-Q increase. This was also higher than 2.7% recorded in Q1 FY25, indicating a Y-o-Y rise. As of June 2025, approximately 98% of the Inclusive Finance portfolio, which makes up around 48% of the Bank's Gross Advances, is covered under the CGFMU Scheme. The breakdown for Gross Non-Performing Assets (GNPA) as of June 30, 2025, shows a GNPA of Rs 927 crore, with Rs 804 crore covered under CGFMU. Of this, Rs 585 crore is claimable as per the CGFMU policy under various cohorts. In Q1 FY26, the bank received around Rs 56 crore, representing 100% of the claim made for the quarter. Additionally, the Bank's retail deposits grew by 44% Y-o-Y, while disbursements for the quarter rose by 30% Y-o-Y, reaching over Rs 2,200 crore. Suryoday Small Finance Bank is a leading Small Finance Bank(SFB) in India. The company started offering SFB services in 2017. They serve customers in the unbanked and underbanked segments. Before SBF, the company operated as an NBFC. The bank reported standalone net loss of Rs 33.78 crore in Q4 FY25 as against net profit of Rs 60.84 crore in Q4 FY24. Net sales rose 4.2% year on year to Rs 530.68 crore in Q4 FY25.
Business Standard
27-06-2025
- Business
- Business Standard
Suryoday SFB re-appoints Baskar Ramachandran as MD & CEO for three years
Suryoday Small Finance Bank (SFB)'s board approved the re-appointment of Baskar Babu Ramachandran as managing director & chief executive officer (CEO) for the period of three years with effect from 23 January 2026 to 22 January 2029. Baskar Babu Ramachandran holds a bachelors degree in mechanical engineering from the University of Madras and a masters degree in business administration from Pondicherry University. He has participated in the management development programme for strategic management for corporate leadership conducted by Indian Institute of Management, Calcutta. He has several years of experience in the banking and finance sector. He was appointed as the MD and CEO of the bank with effect from 23 January 2017. His term renewed for three years from January 23, 2020 and subsequently extended for another three-year starting 23 January 2023. Suryoday Small Finance Bank offers a wide array of services to its customers, through its array of asset and liability products, via multiple delivery channels. The bank has a wide presence across 15 states and UTs across India through its 710 banking outlets, with a strong presence in Maharashtra, Tamil Nadu and Odisha. The company reported standalone net loss of Rs 33.78 crore in Q4 FY25 as compared with net profit of Rs 60.84 crore in Q4 FY24. Total income increased 4.2% YoY to Rs 530.68 crore in Q4 FY25. The counter declined 2.73% to end at Rs 137.40 on the BSE.
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Business Standard
23-06-2025
- Automotive
- Business Standard
RBI relaxes PSL norms to help SFBs de-risk, diversify loan portfolio
The Reserve Bank of India's (RBI's) relaxation of priority sector lending (PSL) norms for small finance banks (SFBs) — reducing the overall PSL target from 75 per cent to 60 per cent — will provide operational flexibility to these lenders, enabling them to diversify and derisk their loan books by venturing into segments they had previously stayed away from. This regulatory dispensation is expected to free up around ₹40,000 crore for SFBs, which can now be deployed in lower-rated risk, secured assets, said industry players and experts. With the relaxation, SFBs can channel funds into segments such as loans against property (LAP), personal loans, vehicle loans, and loans against mutual funds, they added. According to RBI regulations, an SFB was required to extend 75 per cent of its adjusted net bank credit (ANBC) to sectors eligible for classification as PSL. While 40 per cent of the ANBC was to be allocated to different sub-sectors under PSL in line with the extant PSL prescriptions, SFBs were allowed to allocate the balance of 35 per cent to one or more sub-sectors where they have a competitive advantage. Now, the RBI has said that the additional component (35 per cent) of PSL will be reduced to 20 per cent, making the overall PSL target 60 per cent of ANBC or the credit equivalent of off-balance sheet exposures, whichever is higher. According to Ajay Kanwal, managing director (MD) and chief executive officer (CEO) of Jana SFB, the RBI's relaxation of PSL norms is likely to benefit those banks that may have felt constrained by the earlier requirements. With greater flexibility, these banks could now see an opportunity to diversify their loan books. 'The eased norms may encourage more non-banking financial companies to consider applying for an SFB licence. That said, we do not foresee any immediate impact on our profit and loss (P&L) from this regulatory change,' he said. Some of the areas where SFBs can now beef up lending are automobile loans, LAP, loans against shares, and personal loans. While diversification may not come into play in the current financial year (2025–26/FY26), going forward, the banks can now plan for the next two to three years on how they will diversify their business with the extra room that the RBI has provided, said bankers. According to R Baskar Babu, MD and CEO of Suryoday SFB, the diversification in loan books will pave the way for SFBs to prepare themselves for converting into universal banks. While diversification in the loan book will not necessarily mean higher margins, it would certainly provide comfort on asset quality, as most SFBs have a sizeable microfinance portfolio that gets impacted due to various reasons at regular intervals. The regulator has already announced a norm for SFBs that can be eligible to voluntarily convert into universal banks. Currently, there are 11 SFBs in the country, and three of them have applied for conversion. 'This is the vision the RBI had while issuing the differentiated SFB banking licences. This will help add new asset classes and new geographies for the SFBs,' said Inderjit Camotra, MD and CEO of Unity SFB. 'It will enable SFBs to deploy this 15 per cent towards diversifying their present base,' he said. The new norms, which come into effect from the current financial year (FY26), would aid SFBs in earning profit by selling priority sector lending certificates (PSLCs) in the small and marginal farmer segment to other banks that fall short of the target. Under the 40 per cent mandatory PSL target, banks are required to allocate funds to sectors such as agriculture, small and marginal farmers, non-corporate individual farmers, microenterprises, and weaker sections. While most of these segments do not yield sizeable profit through the sale of PSLCs, the small and marginal farmer segment offers some profitability, which SFBs can now strategically leverage to earn extra income. 'The relaxation in PSL norms for SFBs by the RBI provides these banks with greater operational flexibility to diversify their loan books. According to our estimates, around 15 per cent — or over ₹40,000 crore — could be freed up for deployment in lower-rated risk assets, potentially improving their cost of funds. However, this move is unlikely to have a major impact on their P&L in the near term,' said Sanjay Agarwal, senior director, CareEdge.
Business Standard
21-06-2025
- Business
- Business Standard
RBI reduces priority sector lending requirement for small finance banks
PSL requirement will reduce to 60% from 75% earlier The Reserve Bank of India (RBI) has reduced the mandatory priority sector lending requirement for small finance banks (SFBs) to 60% from financial year 2025-26 onwards as against existing requirement of 75%. As per the Guidelines for Licensing of Small Finance Banks in Private Sector dated 27 November 2014 a SFB is required to extend 75% of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL). Further, while 40% of its ANBC should be allocated to different sub-sectors under PSL, the SFB can allocate the balance 35% to any one or more sub-sectors where it has competitive advantage. On a review, it has been decided that financial year 2025-26 onwards, the additional component (35%) of PSL shall be reduced to 20%, thereby making the overall PSL target as 60% of ANBC or Credit Equivalent of Off-Balance Sheet Exposures (CEOBE), whichever is higher. The SFB shall continue to allocate 40% of its ANBC or CEOBE, whichever is higher, to different sub-sectors under PSL as per the extant PSL prescriptions, while the balance 20% shall be allocated to any one or more sub-sectors under the PSL where the bank has competitive advantage.
