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SURYODAY SMALL FINANCE BANK 2021-22 Annual Report Analysis
Thu, 31 Mar

SURYODAY SMALL FINANCE BANK has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the bank during the year 2021-22.

SURYODAY SMALL FINANCE BANK Income Statement Analysis

  • Interest income during the year rose 21.3% on a year-on-year (YoY) basis.
  • Interest expenses were down by 2.3% YoY during the same period.
  • Operating expenses increased by 25.7% YoY during the year.
  • The bank's net interest income (NII) increased by 42.4% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 8.6% in FY22 as against 7.0% in FY21.
  • Other income increased by 22.5% YoY during the year.
  • Net profit for the year declined by 884.7% YoY.
  • Net profit margins during the year declined to -9.9% in FY22 from 1.5% in FY21.

SURYODAY SMALL FINANCE BANK Income Statement – 2021-22

No. of Mths
Year Ending
12
Mar-21*
12
Mar-22*
% Change
Interest Income Rs m 7,7619,41821.3%
Other Income Rs m 76493622.5%
Interest Expense Rs m 3,6573,574-2.3%
Net Interest Income Rs m 4,1055,84542.4%
Operating Expense Rs m 3,2864,13125.7%
Pre-provision Operating Profit Rs m 1,5832,64967.4%
Provisions & Contingencies Rs m 1,4643,579144.5%
Profit before tax Rs m 121-1,271-1150.6%
Tax Rs m 2-340-14283.3%
Profit after tax Rs m 119-930-884.7%
Minority Interest Rs m 000.0%
Net Interest Margin % 7.08.6
Net profit margin % 1.5-9.9
* Results Consolidated
Source: Accord Fintech, Equitymaster



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SURYODAY SMALL FINANCE BANK Balance Sheet Analysis

  • The bank's deposits during FY22 stood at Rs 38.5 bn as compared to Rs 32.6 bn in FY21, thereby witnessing an increase of 18.2%.
  • Advances for the year stood at Rs 47.5 bn as compared to Rs 39.8 bn during FY21, a rise of 19.3%.
  • Cost of deposits for SURYODAY SMALL FINANCE BANK fell 19.0% and stood at 5.9%, while yield on advances rose to 17.2%.
  • The lender's investments rose to Rs 20.6 bn during the year from Rs 18.7 bn in FY21.
  • Borrowing stood at Rs 25.5 bn, a growth of 53.1% as compared to previous year.
  • Overall, the total assets and liabilities for FY22 stood at Rs 81.8 bn as against Rs 67.1 bn during FY21, thereby witnessing a rise of 21.9%.

SURYODAY SMALL FINANCE BANK Balance Sheet – as on March 2022

No. of Mths
Year Ending
12
Mar-21*
12
Mar-22*
% Change
Networth Rs m 15,86814,959-5.7%
Advances Rs m 39,82847,50919.3%
Deposits Rs m 32,55738,49818.2%
Yield on advances % 16.717.2
Cost of Deposits % 7.35.9
Investments Rs m 18,73720,5779.8%
Borrowings Rs m 16,66625,51353.1%
Total Assets Rs m 67,12081,80221.9%
* Results Consolidated
Source: Accord Fintech, Equitymaster



Current Valuations for SURYODAY SMALL FINANCE BANK

  • The trailing twelve-month earnings per share (EPS) of the bank stands at Rs -8.8, a decline from the EPS of Rs 1.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 99.8, stands at -21.0 times its trailing twelve months earnings.
  • The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.7 times, while the price to income ratio stands at 2.1 times.

Per Share Data/Valuations

No. of Mths
Year Ending
12
Mar-21*
12
Mar-22*
Income per share (Unadj.) Rs 73.188.7
Earnings per share (Unadj.) Rs 1.1-8.8
Diluted earnings per share Rs 1.1-8.8
Avg P/E ratio Rs 247.3-21.0
Avg P/ABV ratio Rs 0.80.7
Avg Market Cap Rs 29,32119,541
Dividends per share (Unadj.) Rs 0.000.00
* Results Consolidated
Source: Accord Fintech, Equitymaster



Ratio Analysis for SURYODAY SMALL FINANCE BANK

  • Efficiency Ratios

    Credit/Deposit Ratio: The bank's credit/deposit ratio improved and stood at 123.4x during FY22, from 122.3x during FY21. The credit/deposit ratio tells us how much money a bank has raised in the form of deposits and has deployed as loans.

    Debt to Equity Ratio: The bank's debt to equity ratio increased and stood at 4.28x during FY22, from 3.10x during FY21. The debt to equity ratio of a bank tells us how much debt a bank uses relative to its equity.

  • Liquidity Ratios

    Capital Adequacy Ratio (CAR): SURYODAY SMALL FINANCE BANK's capital adequacy ratio (CAR) was at 37.9% as on 31 March 2022 as compared to 51.5% a year ago. This ratio helps measure the financial strength of the bank or any finance company to meet their obligations using their assets and capital.

    A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

    Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the bank's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a bank sets aside for covering losses due to bad debts.

    So a high PCR ratio means asset quality issues are under control and the bank is not vulnerable.

    Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

  • Profitability Ratios

    Return on Equity (ROE): The return on equity (ROE) ratio for the bank deteriorated and stood at -6.2% during FY22, from 0.7% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Assets (ROA): The return on asset (ROA) ratio of the bank deteriorated and stood at -1.14% during FY22, from 0.18% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

    Return on Capital Employed (ROCE): The ROCE for the bank deteriorated and stood at 0.05% during FY22, from 4.98% during FY21. The ROCE measures the ability of a bank to generate profits from its total capital (shareholder capital plus debt capital) employed in the bank.

  • NPA Ratios

    Gross NPA Ratio: The gross NPA ratio is the ratio of a bank's gross NPAs to gross advances. SURYODAY SMALL FINANCE BANK's gross NPA ratio stood at 11.8% as of 31 March 2022 compared to 9.4% in the same period a year ago.

    A high gross NPA ratio is a bad thing as it indicates how much of a bank's loans are in danger of not being repaid.

    Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the bank has made provisions.

    The net NPA ratio of SURYODAY SMALL FINANCE BANK was 6.0% in financial year 2022. This compared with 4.7% a year ago.

Key Ratio Analysis

No. of Mths
Year Ending
12
Mar-21*
12
Mar-22*
Credit/Deposit Ratio x 122.3123.4
Debt to Equity Ratio x 3.14.3
Loans / Deposits x 0.50.7
Capital Adequacy Ratio % 51.537.9
Return on Equity % 0.7-6.2
Return on Assets % 0.2-1.1
Return on Capital Employed % 5.00.0
% of Gross NPAs % 9.411.8
% of Net NPAs % 4.76.0
Yield on Advances x 16.717.2
Yield on Investments x 4.85.1
* Results Consolidated
Source: Accord Fintech, Equitymaster



To see how SURYODAY SMALL FINANCE BANK has performed over the last 5 years, please visit here.

SURYODAY SMALL FINANCE BANK Share Price Performance

Over the last one year, SURYODAY SMALL FINANCE BANK share price has moved down from Rs 117.9 to Rs 99.8, registering a loss of Rs 18.1 or around 15.3%.

Meanwhile, the S&P BSE BANKEX is trading at 46,701.0 (up 2.1%). Over the last one year it has moved up from 39,542.9 to 46,701.0, registering a gain of 7,158.2 points (up 18.1%).

Overall, the S&P BSE SENSEX is up 7.8% over the year.

(To know more, you can check out historical annual results for SURYODAY SMALL FINANCE BANK here and quarterly results for SURYODAY SMALL FINANCE BANK here)

Annual Report FAQs

What is the current share price of SURYODAY SMALL FINANCE BANK?

SURYODAY SMALL FINANCE BANK currently trades at Rs 161.0 per share. You can check out the latest share price performance of SURYODAY SMALL FINANCE BANK here...

What was the net interest income of SURYODAY SMALL FINANCE BANK in FY22? How does it compare to earlier years?

The net interest income of SURYODAY SMALL FINANCE BANK stood at Rs 5,845 m in FY22, which was up 42.4% compared to Rs 4,105 m reported in FY21.

SURYODAY SMALL FINANCE BANK's net interest income has grown from Rs 1,637 m in FY18 to Rs 5,845 m in FY22.

Over the past 5 years, the net interest income of SURYODAY SMALL FINANCE BANK has grown at a CAGR of 37.5%.

What was the net profit of SURYODAY SMALL FINANCE BANK in FY22? How does it compare to earlier years?

The net loss of SURYODAY SMALL FINANCE BANK stood at Rs -930 m in FY22, which was down 884.7% compared to Rs 119 m reported in FY22.

This compares to a net profit of Rs 1,109 m in FY20 and a net profit of Rs 866 m in FY19.

Over the past 5 years, SURYODAY SMALL FINANCE BANK''s net profit has fallen at a CAGR of NaN%.

What does the Key Ratio analysis of SURYODAY SMALL FINANCE BANK reveal?

Be it the bank's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SURYODAY SMALL FINANCE BANK reveals:

  • Net interest margin increased from 7.0% in FY21 to 8.6% in FY22.
  • Net profit margins fell from 1.5% in FY21 to -9.9% in FY22.
  • Debt to Equity ratio for FY22 stood at 4.3 as compared to 3.1 in FY21.

Here's the ratio/financial analysis of SURYODAY SMALL FINANCE BANK for the past 5 years.

 FY18FY19FY20FY21FY22
Net Interest Margin (%)8.710.111.37.08.6
Net Profit Margin (%)3.516.314.51.5-9.9
Debt to Equity Ratio (x)2.73.13.93.14.3

Read: Latest Annual Report Analysis of SURYODAY SMALL FINANCE BANK

 

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