Suryoday Small Finance Bank Reports Strong Performance in Q4 2023

Suryoday Small Finance Bank, a private bank in the smallcap industry, has recently declared its financial results for the quarter ending December 2023. The bank has received a 'Strong Buy' stock call from MarketsMOJO, indicating positive prospects for investors.

According to the financials, Suryoday Small has shown a very positive performance in the quarter, with a score of 27 compared to 31 in the previous quarter. The bank's profit before tax (PBT) has seen a significant growth of 129.7% at Rs 24.40 crore, compared to the average PBT of the previous four quarters at Rs 10.62 crore. This trend is expected to continue in the near term.

The bank's interest earned in the quarter was at its highest at Rs 410.71 crore, showing a consistent growth in the last five quarters. Similarly, the profit after tax (PAT) has also seen a steady increase, with the highest at Rs 57.22 crore in the last five quarters. The PAT has grown at 47.8% over the average PAT of the previous four quarters at Rs 38.72 crore. This indicates a positive trend in the bank's profitability.

Suryoday Small's net interest income in the quarter was at its highest at Rs 245.69 crore, showing an increase in the bank's core business income. The interest earned has also seen a positive trend, growing at 21.3% over the average interest earned of the previous four quarters at Rs 338.63 crore.

The bank's earnings per share (EPS) in the quarter was at its highest at Rs 5.39, indicating an increase in profitability and higher earnings for shareholders. Additionally, the net non-performing assets (NPA) in the quarter were at its lowest at 1.42%, showing a decrease in the proportion of stressed loans given by the bank.

However, there are some areas that need improvement for Suryoday Small. The non-operating income in the quarter was at 68.02% of the PBT, indicating a high income from non-business activities. This may not be a sustainable business model for the bank. The non-operating income was also at its highest at Rs 51.90 crore in the last five quarters, which may not be sustainable in the long run. The bank's capital adequacy ratio (CAR) in the quarter was at its lowest at 27.77%, indicating a deterioration in the bank's capital base compared to its risk assets.

Overall, Suryoday Small Finance Bank has shown a positive and consistent performance in the quarter ending December 2023. With a 'Strong Buy' stock call from MarketsMOJO, the bank's financials indicate a promising future for investors.