Krishna Prasad Nair
Chairman
We are building a strong, sustainable and inclusive banking institution, prioritising
quality growth; and at the same time emerging as the preferred banker for millions of
customers across the social spectrum.
Dear Shareholders,
It is with a profound sense of humility and commitment that I share my first thoughts
with you as the Chairman of your Bank. At the outset, I must first express my deep sense
of gratitude to my predecessor Mr Ramachandran Rajaraman for his contribution in
strengthening this institution of banking excellence with the help and support of all our
esteemed Board members, other leadership team members and the perseverance of our people.
Our journey from being a microfinance institution to a small finance bank took just
eight years. Over the years, we have overcome many challenges and have demonstrated the
resilience and resolve to grow in step with India's banking sector. Our endeavour is to
bring best-in-class banking solutions to the ‘banked', ‘under-banked' and the
‘un-banked' sections of the society.
Looking at the macro landscape, according to the recent RBI's Financial Stability
Report, the global economy continues to face heightened risks from prolonged geopolitical
tensions, elevated public debt and gradual progress in the last mile of disinflation.
Despite these challenges, the global financial system has remained resilient, and
financial conditions continue to be stable.
In such a backdrop, India's economy and the financial system has remained robust and
resilient, anchored by macroeconomic and financial stability.
With improved balance sheets, banks and financial institutions are supporting economic
activity through sustained credit expansion.
At Suryoday, we are happy to support the dreams and aspirations of over 2 million
smiling customers, who stand testimony to our belief that no matter how big or small
— dreams, when enabled, can create a whole new world around you.
Elevating performance
In the fiscal year 2023-24 (FY24), we have demonstrated the strength and resilience of
our business model, with our net total income surging to INR 1,181.6 crores from INR 844
crores in the fiscal year 2022-23 and a Profit After Tax of INR 216 crores from INR 77.7
crores during the same period. Our gross advances have touched INR 8,650 crores, up
significantly from INR 6,114 crores in FY 2022-23 (41.5% growth). Our deposit base now
stands at INR 7,777 crores, climbing from INR 5,167 crores over the same period.
We are expanding our geographical presence strategically and our footprint spans across
15 states and Union Territories. We have grown our branch distribution in FY24 in terms of
our asset focused outlets, liability focused outlets as well as rural centres.
Our customer base has increased from 23.1 lakhs in FY 2022-23 to 28.2 lakhs in FY
2023-24, demonstrating our successful outreach and engagement strategies.
A pivotal component of our growth strategy has been our commitment to digital
transformation. The bank's ongoing digital transition is beginning to yield significant
benefits, enabling us to enhance customer experience across various touchpoints. We have
made substantial investments in the backend and middleware systems, while our focus will
soon shift to fortifying our frontend capabilities.
Our phygital customer journeys—where physical and digital experiences
converge—are designed to make banking seamless for our customers. The introduction of
our chatbot, ‘Tara,' and the enhanced Video KYC (VKYC) represent our efforts to blend
technology with personalised services, ensuring that we cater to the evolving preferences
of our customers.
Providing need-based financial solutions
We are committed to cater to the diverse needs of households. Joint Liability Group
(JLGs) remains our principal customer acquisition engine followed by Vikas Loan (VL)
offered to our curated customers. We aim to transition from a micro-lending to
comprehensive household banking, thus enhancing our offerings. While certain pockets of
nominal stress are present, we remain confident of our strategies to maintain our asset
quality and manage risks effectively. Our internal risk matrix ensures that we are
assessing aspirants for higher loan eligibility holistically, preventing over-leverage and
potential delinquencies.
We have made tangible progress in expanding services to women entrepreneurs and
enhancing financial access in geographic regions with limited banking facilities. Our
products such as ‘Blossom' for women and ‘Espire' for affluent customers
demonstrate our commitment to tailor solutions that resonate with distinct customer
segments.
Enhancing customer experience consistently remains a top priority, with specific
initiatives aimed at expanding our product lines, such as Two-Wheeler and Small Commercial
Vehicle loans for our income-focused (IF) customers. Our focus remains on sustainability,
ensuring that we prioritise quality growth.
Concluding thoughts
We are building a strong, sustainable and inclusive banking institution, prioritising
quality growth; and at the same time emerging as the preferred banker for millions of
customers across the social spectrum. Our journey ahead is filled with opportunities and
challenges and I am confident that with your continued support, we will continue to
deliver value to our customers and stakeholders.
We thank you for your continued support and belief in Suryoday Small Finance Bank.
Together, we will enable dreams and spread smiles, building a brighter and more
financially inclusive future for all.
Warm Regards,
Krishna Prasad Nair
Chairman