Are Suryoday Small latest results good or bad?

Suryoday Small Finance Bank's financial results for the quarter ending June 2025 present a mixed picture. The bank reported a Profit After Tax (PAT) of Rs 35.28 crore, which reflects a growth compared to the average PAT of the previous four quarters. This indicates a positive trend in profitability for the bank.
Conversely, the Profit Before Tax (PBT) has shown a notable decline, recorded at Rs -61.82 crore, which raises concerns regarding operational efficiency. The significant drop in PBT compared to prior quarters suggests challenges in managing operational costs or revenue generation.

The bank's asset quality appears to be under pressure, with Gross Non-Performing Assets (NPA) rising to 8.46%, indicating an increase in stressed loans over the last five quarters. The Net NPA also stands at 5.64%, reflecting a similar upward trend. These figures highlight potential risks in the bank's lending portfolio.

On a more positive note, the bank's non-operating income surged to Rs 108.65 crore, which is a substantial portion of its PBT, raising questions about the sustainability of this income source. Additionally, the interest earned showed a growth of 5.23% compared to the previous quarter, suggesting some improvement in revenue generation.

Overall, Suryoday Small Finance Bank's results indicate a complex operational landscape, with certain areas showing improvement while others present challenges. The company saw an adjustment in its evaluation based on these results.