Stories
Suryoday Small Finance Bank Targets 35 Percent Loan Growth For FY27
- •Suryoday Small Finance Bank expects loan growth to hit the upper end of its 30 to 35 percent guidance for FY27.
- •MD and CEO R Baskar Babu projects microfinance to grow 20 percent in FY28 while other segments expand faster.
- •Absolute CASA deposits rose 26 percent, and the bank expects the CASA ratio to move back above 20 percent.
- •Despite weaker rainfall in Maharashtra and Karnataka, the bank expects minimal asset quality impact as borrowers are not solely dependent on agriculture.
- •Collection efficiency may see a minor temporary dip, but the bank maintains its overall asset-quality guidance.
Key Questions Answered
Suryoday Small Finance Bank expects its advances growth to remain at the upper end of its 30-35% guidance for the financial year 2026-27 (FY27). MD and CEO R Baskar Babu stated that the lender is observing healthy business momentum across various segments and remains confident of achieving around 35% growth.
While parts of Maharashtra and Karnataka face weaker rainfall and drought conditions, Suryoday SFB notes that its borrowers are not solely dependent on agriculture. The bank estimates that only 10-15% of its customers might see some impact, with collection efficiency experiencing a minor, temporary dip.
Suryoday SFB expects a 25-basis-point interest rate hike to have only a limited impact on its margins. While funding costs could rise slightly, the bank does not plan to broadly pass on the increase to customers, though loans linked to benchmark rates would see an immediate effect.
