> ## Content Index > Fetch the complete content index at: https://www.moatmarginresearch.com/llms.txt > Use this file to discover other available public pages before exploring further. # Suryoday's Bad Loans Fell to 2.9%. Here's the ₹591 Crore Behind It. - URL: https://www.moatmarginresearch.com/suryoday-gnpa-write-off-q2/ - Published: 2026-10-06T03:23:14.000Z - Updated: 2026-10-06T03:23:14.000Z - Description: Suryoday SFB's GNPA fell from 6.5% to 2.9% in a quarter, after a ₹591 crore write-off. Without it, our estimate is about 6.6%. What the filing says. - Author: A K Karthikeyan - Tags: Moat Insights **Suryoday Small Finance Bank says its gross bad loans fell to 2.9% of its book at the end of September, from 6.5% in June and 9.3% a year ago. The same filing says its loan book is shown "after considering a write-off of ₹591 Crore". Put the write-off back, and our estimate of the bad-loan ratio is about 6.6%, roughly where it was in June.** ## What the filing says From Suryoday's Q2 update (\[SSFB\]), ₹ crore: | | Q2 FY27 | Q1 FY27 | Q2 FY26 | | --------------------------- | ------- | ------- | ------- | | Gross advances (incl. IBPC) | 14,972 | 14,376 | 11,124 | | Total deposits | 16,184 | 14,634 | 11,991 | | Bulk deposits | 2,514 | 1,852 | 1,675 | | CASA ratio | 19.4% | 21.0% | 20.7% | | GNPA ratio | 2.9% | 6.5% | 9.3% | And at 30 September: | | ₹ crore | | ------------------------------------------------------------- | ------- | | GNPA | 438.31 | | Provisions | 135.77 | | NNPA | 224.51 | | Balance claimable under CGFMU (a government credit guarantee) | 180.00 | ## The arithmetic both ways Our arithmetic, on the filed figures: - **As reported:** GNPA ₹438 crore on a ₹14,972 crore book, the bank's 2.9%. - **With the write-off added back:** if the whole ₹591 crore was bad loans, GNPA would be about ₹1,029 crore on a ₹15,563 crore book. That is **about 6.6%**. - **Against June:** the ratio was 6.5% then. On this estimate, the underlying bad-loan level barely moved; the write-off did the work. The filing doesn't say which loans were written off, so this is an estimate. ## Two more numbers worth a look - **Thin provisions.** Provisions of ₹135.77 crore cover 31% of GNPA (our arithmetic). The bank leans on the credit guarantee too: ₹180 crore is still "Claimable under CGFMU". - **NNPA doesn't add up.** GNPA minus provisions is ₹302.54 crore, but NNPA is shown as ₹224.51 crore. The filing doesn't explain the ₹78 crore gap; guarantee claims may be netted, but it doesn't say. ## Three small finance banks, three routes Q2 filings from three small finance banks show three different paths on bad loans: | Bank | Bad-loan ratio | Write-offs in Q2 | What drove the change | | ------------------- | -------------- | --------------------------------- | --------------------------------------------- | | Ujjivan (\[UJJ\]) | 2.17% → 2.10% | ₹43 crore (₹213 crore a year ago) | not write-offs, which fell | | ESAF (\[ESAF\]) | not given | ₹625 crore technical write-off | the bank presents it as a drag on loan growth | | Suryoday (\[SSFB\]) | 6.5% → 2.9% | ₹591 crore | most of the fall, on our estimate | Write-off definitions can differ between banks. ## Moat and margin **Focus moat: cost advantage in underwriting.** A small finance bank's edge is lending to small borrowers profitably. Over time, that shows up as low credit costs. One quarter's ratio after a large write-off doesn't show it either way. **The margin side.** The write-off, provisions and any guarantee recoveries will run through Q2 profit. The update gives no P&L figures. Two more points from the same filing: - Deposits grew 35% in a year, and bulk deposits jumped 35.7% in the quarter. - CASA fell to 19.4% of deposits. **MoatSCORE: not yet scored.** Suryoday is not on the Moat Screener (\[MS\]). ## The bear case - **Cosmetic improvement.** On our estimate, the underlying bad-loan ratio is still about 6.6%. - **Thin cover.** Provisions cover 31% of GNPA, with guarantee claims of ₹180 crore still pending. - **Costlier funding.** Bulk deposits up 35.7% in a quarter; CASA ratio down. ## The case for - **Clean-up done.** A large write-off resets the book; collection efficiency in the current bucket is 99.1%. - **Guarantee cover.** The bank says it covers eligible loans under the government's credit guarantee scheme. - **Growth.** Gross advances +34.6% and deposits +35% in a year. ## What to watch 1. Q2 results: credit cost, provisions and guarantee recoveries in the P&L. 2. The GNPA ratio in December, with no further large write-off. 3. CGFMU claims received against the ₹180 crore claimable. ## Sources - **\[SSFB\]** [Suryoday Small Finance Bank, Q2 FY27 quarterly business update, 5 Oct 2026](https://nsearchives.nseindia.com/corporate/SURYODAY%5F05102026103508%5FSSFB%5FQuarterly%5FBusiness%5FUpdate%5FQ2FY27%5Fsd.pdf) (NSE) - **\[UJJ\]** [Ujjivan Small Finance Bank, Q2 FY27 business update, 3 Oct 2026](https://nsearchives.nseindia.com/corporate/UJJIVANBANK%5F03102026163008%5F90%5FBusiness%5FUpdateQ2%5FFY27.pdf) (NSE) - **\[ESAF\]** [ESAF Small Finance Bank, Q2 FY27 key business updates, 1 Oct 2026](https://nsearchives.nseindia.com/corporate/esfb%5F01102026233055%5FSE%5FIntimation%5FKey%5FBusiness%5FUpdates%5FQ2FY27.pdf) (NSE) - **\[MS\]** [Moat & Margin, Moat Screener](https://www.moatmarginresearch.com/moat-screener/) and [How MoatSCORE works](https://www.moatmarginresearch.com/moatscore/) --- > Educational research, not investment advice. Every figure above is drawn from the banks' own filings, read from the primary documents on 6 October 2026; derived figures, including the "write-off added back" estimate, are our arithmetic and are labelled. Suryoday is not yet scored on the Moat Screener. No buy/sell recommendations, no price targets, no share prices. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.