Suryoday Small Finance Bank Limited (NSE: SURYODAY) today released its Quarterly Business Update for the third quarter of fiscal 2025–26 (Q3 FY26), showing continued expansion in business volumes and stable asset quality on a year-over-year (YoY) and quarter-over-quarter (QoQ) basis.
Loan and Deposit Growth Accelerates
According to the update, the bank recorded strong growth in its loan book, with Gross Advances rising to ₹11,810 crore in Q3 FY26, up 23% YoY and 6% QoQ from ₹11,124 crore in Q2 FY26. Disbursements for the quarter jumped sharply to ₹2,698 crore, representing an 84% increase YoY and 11% QoQ.
Suryoday also reported healthy expansion in customer deposits, with Total Deposits reaching ₹12,865 crore, up 33% YoY and 7% from the previous quarter. Retail deposits continued to dominate the deposit mix at over ₹11,188 crore. The bank’s CASA (Current Account and Savings Account) ratio improved to 21.2% for the quarter, compared with 20.7% in Q2 FY26.
Asset Quality and Collections
On asset quality, the bank’s Gross Non-Performing Asset (GNPA) ratio stood at 6.7%, slightly elevated from 5.9% in Q2 but tracking improvements compared with prior periods. Collection efficiency remained strong, with overall collections at 99.4% and 1-EMI adjusted collections at 96.5%, indicating robust repayment trends among borrowers.
Management Commentary
In the disclosure, Suryoday management highlighted the bank’s continued focus on prudent portfolio expansion, robust deposit mobilisation, and maintaining strong collection performance across inclusive finance and retail segments. The bank also indicated that a substantial portion of its inclusive finance portfolio remains covered under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme, reflecting its risk-management strategy.
Outlook
The quarterly update suggests that Suryoday SFB is sustaining its growth momentum in FY26, with balanced credit expansion and improving funding metrics. Investors and analysts will be watching the bank’s ability to further enhance profitability while managing asset quality pressures, especially in the inclusive finance segments.
