Suryoday Small Finance Bank has faced significant issues in the past 3 years as the company’s asset quality deteriorated due to COVID. GNPA and NNPAs rose to a peak of 11.8% and 6% with the company slipping into losses for the year FY22. However the company has proactively been cleaning up its books through recoveries, sale of bad loans to ARC, focus on secured lending vs unsecured lending (inclusive finance) leading to GNPAs and NNPAs falling to 3.1% and 1.5% as on Mar 2023.
The company listed on the exchanges in Mar 2021 at Rs 305 per share and given the loan book issues has since then been on a declining trend. However if management is to be believed they have left behind the ghosts of COVID and the company will turnaround from here on.
Company has a history of delivering strong growth in the past having grown revenues 46x in the last 10 years. However profits have been see-sawing with notable dips in FY17, FY18 (request if somebody who tracks banking and lending sector can throw light on this…if there was any macro trend in the industry at that time which led to decline in profits)
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