Result Update

Institutional Research
India I BFSI
10 February, 2023

Suryoday Small Finance Bank BUY

Price: Rs107
Expect jump in FY24 profitability Target Price: Rs173
Forecast return: 62%
Suryoday SFB saw a good quarter as loan growth and collection efficiency saw a positive Market Data
surprise. Resultantly, reported one more quarter of profit, in line with our estimates. PAT Bloomberg: SURYODAY IN
of Rs181mn (+286% YoY, 39% QoQ); however, reported higher operational expenses
52 week H/L: 158/77
(Rs215.3mn loss on sale of assets to ARC, higher employee and depreciation cost). Lower
Market cap: Rs11.1bn
Provision for the quarter at Rs397mn came to the rescue. Loan growth was strong at 20%
YoY (normalised) and credit flow was largely led by MFI and Housing. Secured mix was Shares Outstanding: 106.2mn
higher at 39% (due to sale of IF book to ARC) while CASA declined from 19% to 14% Free float: 68.8%
sequentially. GNPA stands at Rs229cr (including ECLGS loans of Rs66cr) and provision Avg. daily vol. 3mth: 8,48,749
against the same stands at Rs83cr. We believe improving business volumes (via Vikas loan) Source: Bloomberg

and portfolio quality (curated customer base) has shaped up well. Resultantly, expect Changes in the report
Suryoday to post RoAA (2.1%) and RoAE (13.9%) by FY25. On FY25 ABV, we maintain Rating: BUY; Unchanged
multiple/TP at 1.0x/Rs173. Retain BUY with a potential upside 62%. Target price: Rs173; Unchanged
Q3FY23 – Opex disappoints; asset quality improves QoQ FY24E: ; Unchanged
EPS:
FY25E: ; Unchanged
NII came in at Rs1.84bn (est. Rs1.80bn) led by a decent loan growth at 19.6% YoY (normalised) Source: Centrum Broking
to Rs54.1bn. Disbursals were healthy at Rs12.7bn in line with management guidance of Rs4bn
pm ‐ led by MFI and housing segment. Secured mix was a higher at 38.9% (last quarter 35.6%) Shareholding pattern
owing to sale of IF loan book to ARC. Deposits also saw a healthy growth at 48% YoY as bulk Dec‐22 Sep‐22 Jun‐22 Mar‐22
deposits book nearly tripled YoY to Rs10.4bn while CASA declined from 19% to 14% Promoter 23.3 28.0 28.0 28.0
sequentially. Other income was ahead at Rs257mn (est. Rs230mn) led by better fee income FIIs 2.6 3.9 4.8 4.8
driven by higher business volumes. Opex was a miss at Rs1.24bn (est. Rs1.15bn) led by higher DIIs 13.7 14.0 14.2 15.4
staff cost and other opex. PPoP was a marginally below estimates at Rs848mn (est. Rs884mn) Public/other 60.4 54.0 53.0 51.8
led by more opex. Provisions were lower at Rs612mn (including ARC sale cost, est. Rs670mn). Source: BSE

Asset quality was better with GNPA and NNPA stood at 4.23% and 2.74% respectively as on
9MFY23 which are not comparable due to sale of assets to ARC during the 3QFY23.
Material improvement in asset quality; overall net stress reduces
One EMI adjusted Collection efficiency (CE) further improved from ~90% in 2QFY23 to 96% in
Dec’22 leading to a PAR‐90+ reduction from 7.94% as at Sep’22 to 3.36% as at Dec’22. CE for
for post June 21 book has also held up very well at 98%. As on Dec’22 the restructured pool
stands at Rs1.83bn of which Rs0.97bn overlaps with GNPA. Coverage on the GNPA pool
(Rs1.63bn, net of ECLGS) was at 51%.
Outlook – One more quarter of pain on numbers front;
As per the management, around Rs60cr of maximum provisioning would be needed (4QFY23).
The primary focus on immediate basis of Suryoday is to improve portfolio quality, collections
and rebuild business volumes. Primarily owing to curated customer focus, centralized
decision making process etc. We believe the effect of Covid on the bank’s financials is waning.
Further, many initiatives of the Bank to create a stable, sustainable and scalable bank have
started yielding results and the performance of FY24 is expected to be far better than FY23.
Valuation doesn’t factor in normalized profit going ahead; BUY with a TP of Rs173
Long term strategy to accelerate business growth and profitability, diversify asset book and
build a stable granular liability base with technology being a key enabler. In this backdrop, a
secured asset book will contribute to 50% of the portfolio by FY25. We believe with
improvement in CE (aided by overall improvement in MFI space and change in quality of book)
will lead to better stock performance going ahead. On FY25 ABV, we maintain multiple/TP
at 1.0x/Rs173. Retain BUY. Risks: lower collection efficiency.
Financial and valuation summary
YE Mar (Rs mn) 3QFY23A 3QFY22A YoY (%) 2QFY23A QoQ (%) FY23E FY24E FY25E
NII 1,835 1,673 9.7 1,759 4.3 7,284 8,578 10,967
PPoP 848 805 5.3 931 (8.9) 3,602 4,124 5,038
Provisions 612 726 (15.7) 761 (19.6) 2,795 1,785 1,562
Net profit 181 47 285.7 130 39.0 609 1,750 2,601
Loan growth (%) 15.3 22.2 (30.9) 21.1 (27.5) 18.5 27.4 22.5
NIM (%) 9.6 10.4 (7.7) 9.6 0.0 9.7 10.1 10.0
BFSI

Cost/income (%) 59.5 56.6 5.0 53.6 10.9 55.7 57.1 58.8
GNPA (%) 4.2 10.5 (59.6) 9.9 (57.3) 4.1 4.6 4.9 Shailesh Kanani
RoA (%) 0.9 0.3 222.8 0.7 33.5 0.7 1.9 2.1 Research Analyst, BFSI
RoE (%) 4.7 1.4 241.6 3.4 38.0 4.0 10.6 13.9 +91‐22 4215 9001
P/ABV (x) 0.0 0.0 0.0 0.0 0.0 0.8 0.7 0.6 shailesh.kanani@centrum.co.in
Source: Company, Centrum Broking

Please see Disclaimer for analyst certifications and all other important disclosures.
Suryoday Small Finance Bank 10 February, 2023

Thesis Snapshot
Estimate revision Valuations
FY23E FY23E FY24E FY24E Suryoday has assigned/recruited dedicated team to improve the collection
YE Mar (Rs mn) % chg % chg
New Old New Old efficiency which has started yielding results (CE improving from 90% to 96%).
NII 7,284 7,284 ‐ 8,578 8,578 ‐ In our estimates over FY22‐25, we pencil in a 23.3% CAGR jump over NII (led
PPoP 3.602 3,602 ‐ 4,124 4,124 ‐ by focus on minting curated customer base via products like Vikas loan aiding
PAT 609 609 ‐ 1,750 1,750 ‐ AUM growth), moderation in CTI ratio to 58.8% in FY25 (peaked in FY21 at
Loan growth (%) 14.0 14.0 ‐ 28.1 28.1 ‐ 67.5%) and lower credit cost. We initiate Buy on the stock with a Target price
of Rs173/‐ based on 1xABV on FY25E
GNPA (%) 4.1 4.1 ‐ 4.6 4.6 ‐
Source: Centrum Broking
P/ABV mean and standard deviation
Suryoday SFB versus NIFTY Midcap 100 2.5
1m 6m 1 year 2.0
SURYODAY IN (9.3) 14.5 (22.2)
NIFTY Midcap 100 (1.9) 2.1 2.0 1.5
Source: Bloomberg, NSE 1.0
0.5

0.0

Mar‐21

Mar‐22

May‐22
Oct‐21

Jan‐22

Oct‐22

Jan‐23
Dec‐21

Nov‐22
Jul‐21

Jul‐22
Apr‐21

Apr‐22
Jun‐21

Aug‐21

Aug‐22
Sep‐21

Feb‐22

Sep‐22

Feb‐23
P/ABV Mean
Mean + Std Dev Mean ‐ Std Dev
Source: Bloomberg, Centrum Broking

Key Financials
CAGR (FY22‐25E) P/E (x) P/BV (x)
Company CMP (Rs) Rating TP (Rs) Mcap (Rs mn) AUM NII Opex PPoP FY22A FY23E FY24E FY25E FY22A FY23E FY24E FY25E
Suryoday 107 BUY 173 11,430 21.5% 23.3% 20.3% 23.9% nm 19.0 6.6 4.4 0.9 0.8 0.7 0.6

EPS (Rs) ABVPS (Rs) RoAA (%) RoAE (%)

Company FY22A FY23E FY24E FY25E FY22A FY23E FY24E FY25E FY22A FY23E FY24E FY25E FY22A FY23E FY24E FY25E
Suryoday ‐8.8 5.7 16.5 24.5 115 138 151 173 ‐1.3 0.7 1.9 2.1 ‐6.0 4.0 10.6 13.9
Source: Company, Centrum Broking

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Suryoday Small Finance Bank 10 February, 2023

Concall Highlights
Business Performance
 Gross advances stood at ~Rs54bn, not comparable not comparable due to sale of assets
to ARC during the 3QFY23.
 Good credit demand in IF, affordable housing and MSE segment. CV demand picking up
gradually.
 Disbursement in 3QFY23 was Rs12.7bn, up ~13% YoY and QoQ.
 Diversifying asset book towards non‐micro banking business which now contributes to
~39% of loan book.
 Total deposits stood at Rs46.9bn up by 48% YoY with total retail at 78% in 3QFY23 vs
72% in 2QFY23.
 CASA deposits grew by 9% YoY to ~Rs6.6bn. CA and SA contribute 9.3% and 90.7%
respectively.
 Acquired 1,00,000 new customers in 3QFY23, 4.8% QoQ jump.
 COF declined by 2/50bps YoY and QoQ to 6.7% in 3QFY22.
Exhibit 1: Advances trend Exhibit 2: Disbursement trend
Gross Advances (Rs mn) Disbursement (Rs mn)
55000 15000
54000
53000
10000
52000
Q2FY23, Q3FY23, Q3FY23,
51000 Q2FY23,
53,784 54,082 Q4FY22, Q1FY23, 12,651
5000 11,182
50000 Q1FY23, 9,801 10,122
Q4FY22,
49000 51,322
50,632
48000 0
Q4FY22 Q1FY23 Q2FY23 Q3FY23 * Q4FY22 Q1FY23 Q2FY23 Q3FY23
Source: Centrum Broking, Company Data, *Gross advances at Rs54Bn, not comparable Source: Centrum Broking, Company Data
due to sale of assets to ARC during the 3QFY23

Exhibit 3: Growing customers base

Customer Base (Lakh)
Q3FY23,
Q3FY23
21.9
Q2FY23,
Q2FY23
20.9
Q1FY23,
Q1FY23
20.1
Q4FY22,
Q4FY22
19.2

17 18 19 20 21 22 23
Source: Centrum Broking, Company Data

Exhibit 4: Portfolio Mix – Product Wise Exhibit 5: Regional Portfolio Mix (Overall)

Source: Centrum Broking, Company Data Source: Centrum Broking, Company Data

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Suryoday Small Finance Bank 10 February, 2023

Asset Quality
 Collections including arrears sustaining around 96% (one EMI adjusted) during 3QFY23.
Further, post June 21 advances (84%) are having a collection efficiency of 98%. Overall
PAR of post June 21 book is 4.4% with 90+ at mere 0.6%.
 As of 3QFY23, the restructured book stands at Rs1.8bn and has collection efficiency of
65% (one EMI adjusted).
 GNPA and NNPA stood at 4.23% and 2.74% respectively as on 9MFY23 which are not
comparable due to sale of assets to ARC during the 3QFY23.
 Total provision on book stands at ~Rs83cr. In 3QFY23, ~Rs1.8bn of provisions and
Rs0.9bn of floating provision was utilized towards ARC transaction. Further, ~22cr loss
was booked in PnL for the same during 3QFY23.
 PCR stood at 36.2% (excluding technical write off).
Tier 1 stood at 33.5% with CRAR at 36.4% while overall liquidity at Rs31bn as on
3QFY23.

Exhibit 6: Restructured/Other Advances

Source: Source: Centrum Broking, Company Data

Exhibit 7: Movement of PAR

Source: Source: Centrum Broking, Company Data

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Suryoday Small Finance Bank 10 February, 2023

Other
 Increase in cost to income mainly due to increase in expenses towards improving
collection efforts.
 Focusing on graduating existing customers to Vikas loan products. Expect Vikas Loan
Book of ₹1,200 crores (₹ 828 crores in Dec‐22 with PAR of 0.8%).
 Target NNPA of 2% by March‐23 on the back of robust collections.
 To achieve monthly PPOP of ₹ 40 crores by March‐23.
 Use of multiple apps such as Sarathi and Jyoti app to reduce TaT and improve efficiency
across asset and liability products. Leverage on robust analytics that enables bank to
achieve the next leg of growth.

Outlook
 Primary focus on immediate basis is to improve portfolio quality, collections and rebuild
business volumes.
 Post June 21 book Collections are healthy and are overall performance expected to
improve hereon
 Long term strategy to accelerate business growth and profitability, diversify asset book
and build a stable granular liability base with technology being a key enabler. In this
backdrop, a secured asset book will contribute to 50% of the portfolio.
 We believe the effect of Covid on the bank’s financials is waning. Further, many
initiatives of the Bank to create a stable, sustainable and scalable bank have started
yielding results and the performance of FY24 is expected to be far better than FY23.
 We maintain BUY with a Target Price of Rs173.

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Suryoday Small Finance Bank 10 February, 2023

Exhibit 8: Quarterly financials

Rs mn) Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
Income statement
Interest earned 1,518 2,157 2,345 2,550 2,366 2,814 2,810 2,918
Interest expended 946 922 873 877 902 1,044 1,051 1,083
Net Interest Income 572 1,234 1,472 1,673 1,464 1,771 1,759 1,835
Other income 346 228 334 182 200 132 247 257
Total Income 918 1,463 1,806 1,854 1,664 1,902 2,006 2,091
Operating Expenses 970 924 979 1,050 1,180 1,108 1,075 1,243
Employees 523 518 547 553 664 532 516 644
Others 447 406 432 497 516 576 559 814
Operating profit ‐53 539 827 805 484 794 931 848
Provisions 527 1,108 973 726 1,121 693 761 612
Profit before tax ‐580 ‐569 ‐145 79 ‐637 101 170 236
Taxes 150 ‐91 ‐126 32 ‐155 24 40 55
Net Profit ‐729 ‐478 ‐19 47 ‐482 77 130 181
Balance sheet
Shareholders Funds 15,970 15,505 15,489 15,535 15,051 15,139 15,274 15,448
Borrowings 16,670 16,682 17,065 23,222 25,513 26,830 23,500 23,615
Deposits 32,560 33,170 31,290 31,696 38,498 40,201 42,070 46,969
Other liabilities 1,930 2,175 2,646 2,511 2,739 3,128 3,005 2,971
Total liabilities 67,130 67,532 66,490 72,964 81,801 85,298 83,849 89,003
Cash & bank 5,970 8,130 3,261 3,279 9,777 4,420 4,402 6,665
Advances 39,830 37,930 42,035 46,201 47,509 48,625 50,902 53,269
Investments 18,740 18,830 18,383 15,114 20,577 27,998 24,244 24,720
Fixed assets 432 420 414 531 1,152 1,502 1,576 1,723
Other assets 2,160 2,230 2,398 2,353 2,787 2,753 2,725 2,627
Total assets 67,132 67,540 66,491 67,478 81,802 85,298 83,849 89,003
Balance sheet (%)
Loan growth 12% 9% 19% 29% 28% 37% 27% 11%
Deposit growth 14% 16% 0% ‐5% 18% 21% 34% 48%
Loans / Deposits 122% 113% 135% 154% 132% 128% 128% 115%
Investment / Deposits 58% 57% 59% 48% 53% 70% 58% 53%
Capital Adequacy
Tier‐1 47.2 47.6 41.8 37.8 34.4 33.5 33.1 33.5
Tier‐2 4.3 4.5 4.1 3.6 3.4 2.9 2.8 2.9
CRAR 51.47% 52.10% 45.86% 41.44% 37.86% 36.37% 35.88% 36.35%
Profitability (%)
Yield on assets 11.6% 18.0% 19.3% 19.2% 16.4% 18.8% 18.4% 18.8%
Cost of funds 6.7% 7.4% 7.1% 6.8% 6.5% 6.4% 6.7% 6.7%
NIM 5.4% 12.3% 13.2% 13.7% 11.6% 13.8% 8.5% 8.7%
Other income / Assets 0.8% 0.6% 0.8% 0.4% 0.4% 0.3% 0.5% 0.5%
Cost / Income 105.7% 63.1% 54.2% 56.6% 70.9% 58.3% 53.6% 59.5%
Employees 57% 35% 30% 30% 40% 28% 26% 31%
Others 49% 28% 24% 27% 31% 25% 22% 34%
Cost / Assets 2.3% 2.2% 2.3% 2.2% 2.4% 2.2% 2.0% 2.3%
RoA ‐1.7% ‐1.2% 0.0% 0.1% ‐1.0% 0.2% 0.2% 0.7%
RoE ‐4.6% ‐3.0% ‐0.1% 0.3% ‐3.2% 0.5% 0.9% 2.6%
Asset quality (%)
GNPA 9.9% 10.2% 10.8% 10.5% 11.8% 10.0% 9.9% 4.2%
NNPA 8.3% 4.7% 4.7% 5.8% 5.9% 5.0% 4.7% 2.8%
PCR 23.2% 55.5% 58.8% 47.8% 52.5% 52.7% 54.5% 36.2%
Credit Cost 1.3% 2.7% 2.3% 1.6% 2.3% 1.4% 1.4% 0.7%
Source: Company, Centrum Broking

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Suryoday Small Finance Bank 10 February, 2023

P&L Balance sheet

YE Mar (Rs mn) FY21A FY22A FY23E FY24E FY25E YE Mar (Rs mn) FY21A FY22A FY23E FY24E FY25E
Interest earned 7,761 9,418 11,781 14,681 19,044 Share capital 1,061 1,062 1,062 1,062 1,062
Interest expended 3,657 3,574 4,497 6,103 8,077 Reserves & surplus 14,908 13,990 14,599 16,349 18,949
Net Interest Income 4,105 5,845 7,284 8,578 10,967 Deposits 32,557 38,498 46,923 62,371 83,688
Other income 764 936 838 1,029 1,258 Borrowings 16,666 25,513 15,988 22,469 27,166
Total Income 4,869 6,780 8,122 9,607 12,226 Other Liabilities 1,928 2,739 3,005 4,790 6,352
Operating Expenses 3,286 4,131 4,520 5,483 7,188 Total liabilities 67,120 81,802 81,576 1,07,040 1,37,217
Employees 1,858 2,282 2,278 2,816 3,894 Cash balances with RBI 1,028 1,595 3,112 4,307 5,766
Others 1,428 1,849 2,242 2,668 3,295 Balances with banks 4,938 8,182 6,586 7,244 7,969
PPoP 1,583 2,649 3,602 4,124 5,038 Investments 18,737 20,577 10,532 17,350 27,564
Provisions 1,464 3,579 2,795 1,785 1,562 Advances 39,828 47,509 56,308 71,726 87,872
Profit before tax 119 (930) 807 2,339 3,475 Fixed Assets 432 1,152 1,776 2,131 2,557
Taxes 0 0 198 589 875 Other Assets 2,157 2,787 3,263 4,282 5,489
Net Profit 119 (930) 609 1,750 2,601 Total assets 67,120 81,802 81,576 1,07,040 1,37,217

Ratios Ratios
YE Mar FY21A FY22A FY23E FY24E FY25E YE Mar (Rs mn) FY21A FY22A FY23E FY24E FY25E
Growth (%) Balance Sheet (%)
Loans 12.8 19.3 18.5 27.4 22.5 Loans / Deposits 122.3 123.4 120.0 115.0 105.0
Deposits 14.3 18.2 21.9 32.9 34.2 Investments / Deposits 57.6 53.4 22.4 27.8 32.9
RWA growth 0.0 29.3 27.0 22.0 23.0 CASA 15.4 18.8 20.9 20.9 21.0
NII (16.3) 42.4 24.6 17.8 27.9 Assets/equity (x) 4.2 5.4 5.2 6.1 6.9
Other income 0.0 22.5 (10.4) 22.8 22.3 RWA / Total assets 50.4 53.4 68.0 63.3 60.7
Opex 20.8 25.7 9.4 21.3 31.1 Capital ratios (%)
PPoP (27.5) 67.4 36.0 14.5 22.2 Tier‐1 46.7 34.1 27.9 25.5 23.8
Provisions (24.9) 144.5 (21.9) (36.1) (12.5) Tier‐2 4.1 2.3 1.8 1.6 1.3
Net profit (49.5) nm nm 187.4 48.6 CRAR 50.9 36.3 29.7 27.0 25.2
Profitability (%) Asset quality ratios (%)
Yield on assets 18.1 19.8 21.1 20.3 19.0 GNPA (Rs mn) 3,937 5,974 2,334 3,387 4,415
Cost of funds 8.0 7.0 7.1 8.3 8.3 NNPA (Rs mn) 1,881 2,834 1,042 1,350 1,617
NIM 7.2 8.4 9.7 10.1 10.0 GNPA 9.4 11.8 4.1 4.6 4.9
Other income / Total inc. 15.7 13.8 10.3 10.7 10.3 NNPA 4.7 5.9 1.8 1.9 1.8
Other inc. / avg assets 1.3 1.3 1.0 1.1 1.0 PCR 52.2 52.6 55.4 60.1 63.4
Cost/Income 67.5 60.9 55.7 57.1 58.8 Slippage 9.5 10.6 5.0 2.8 2.0
Employee 38.2 33.7 28.0 29.3 31.8 NNPA / Equity 11.8 18.8 6.7 7.8 8.1
Other 29.3 27.3 27.6 27.8 26.9 Per share
Opex/ Avg assets 5.4 5.5 5.5 5.8 5.9 EPS 1.1 (8.8) 5.7 16.5 24.5
Provisioning cost 3.9 8.2 5.4 2.8 2.0 DPS 0.2 0.0 0.2 0.2 0.2
Tax rate 0.0 0.0 24.6 25.2 25.2 BVPS 150.5 141.8 147.5 164.0 188.5
RoE 0.9 (6.0) 4.0 10.6 13.9 ABVPS 132.7 115.1 137.7 151.3 173.3
RoA 0.2 (1.2) 0.7 1.9 2.1 Valuation (x)
RoRWA 0.7 (2.4) 1.2 2.8 3.4 P/E 94.9 nm 18.5 6.4 4.3
Du‐pont (%) P/BV 0.7 0.7 0.7 0.6 0.6
Interest income 12.8 12.6 14.4 15.6 15.6 P/ABV 0.8 0.9 0.8 0.7 0.6
Interest expenses 6.1 4.8 5.5 6.5 6.6 Source: Company, Centrum Broking
NII 6.8 7.8 8.9 9.1 9.0
Other income 1.3 1.3 1.0 1.1 1.0
Total income 8.1 9.1 9.9 10.2 10.0
Operating expenses 5.4 5.5 5.5 5.8 5.9
Employee 3.1 3.1 2.8 3.0 3.2
Other 2.4 2.5 2.7 2.8 2.7
PPOP 2.6 3.6 4.4 4.4 4.1
Provisions 2.4 4.8 3.4 1.9 1.3
PBT 0.2 (1.3) 1.0 2.5 2.8
Tax 0.0 0.0 0.2 0.6 0.7
RoA 0.2 (1.2) 0.7 1.9 2.1
Source: Company, Centrum Broking

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Suryoday Small Finance Bank 10 February, 2023

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projections and forecasts were not prepared with a view toward compliance with published guidelines or generally accepted accounting principles. No
independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You should not regard the inclusion of
the projections and forecasts described herein as a representation or warranty by or on behalf of the Company, Centrum, the authors of this report or any
other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you should only consider the projections
and forecasts described in this report after carefully evaluating all of the information in this report, including the assumptions underlying such projections and
forecasts.
The price and value of the investments referred to in this document/material and the income from them may go down as well as up, and investors may realize
losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of original capital may occur.
Actual results may differ materially from those set forth in projections. Forward‐looking statements are not predictions and may be subject to change without
notice. Centrum does not provide tax advice to its clients, and all investors are strongly advised to consult regarding any potential investment. Centrum and
its affiliates accept no liabilities for any loss or damage of any kind arising out of the use of this report. Foreign currencies denominated securities are subject
to fluctuations in exchange rates that could have an adverse effect on the value or price of or income derived from the investment. In addition, investors in
securities such as ADRs, the value of which are influenced by foreign currencies effectively assume currency risk. Certain transactions including those involving
futures, options, and other derivatives as well as non‐investment‐grade securities give rise to substantial risk and are not suitable for all investors. Please
ensure that you have read and understood the current risk disclosure documents before entering into any derivative transactions.
This report/document has been prepared by Centrum, based upon information available to the public and sources, believed to be reliable. No representation
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such restrictions. By accepting this report, you agree to be bound by the fore going limitations. No representation is made that this report is accurate or
complete.

Centrum Institutional Research 8

Suryoday Small Finance Bank 10 February, 2023

The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of Centrum Broking and
are given as of this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report
and there can be no assurance that future results or events will be consistent with any such opinions, estimate or projection.
This document has not been prepared by or in conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its
directors or any other person. Information in this document must not be relied upon as having been authorized or approved by the company or its directors
or any other person. Any opinions and projections contained herein are entirely those of the authors. None of the company or its directors or any other person
accepts any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection therewith.
Centrum and its affiliates have not managed or co‐managed a public offering for the subject company in the preceding twelve months. Centrum and affiliates
have not received compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for
service in respect of public offerings, corporate finance, debt restructuring, investment banking or other advisory services in a merger/acquisition or some
other sort of specific transaction.
As per the declarations given by him, Mr. Shailesh Kanani, research analyst and and/or any of their family members do not serve as an officer, director or any
way connected to the company/companies mentioned in this report. Further, as declared by them, they are not received any compensation from the above
companies in the preceding twelve months. They do not hold any shares by them or through their relatives or in case if holds the shares then will not to do
any transactions in the said scrip for 30 days from the date of release such report. Our entire research professionals are our employees and are paid a salary.
They do not have any other material conflict of interest of the research analyst or member of which the research analyst knows of has reason to know at the
time of publication of the research report or at the time of the public appearance.
While we would endeavour to update the information herein on a reasonable basis, Centrum, its associated companies, their directors and employees are
under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Centrum from
doing so.
Non‐rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable
regulations and/or Centrum policies, in circumstances where Centrum is acting in an advisory capacity to this company, or any certain other circumstances.
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state,
country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Centrum
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unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may be distributed in
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authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as prescribed by Securities and
Exchange Board of India before investing in Indian Securities Market.

Ratings definitions
Our ratings denote the following 12‐month forecast returns:
Buy – The stock is expected to return above 15%.
Add – The stock is expected to return 5‐15%.
Reduce – The stock is expected to deliver ‐5‐+5% returns.
Sell – The stock is expected to deliver <‐5% returns.
Suryoday Small Finance Bank

160
150
140
130
120
110
100
90
80
70
Jul- 22

Au g-22

Oct -22
Mar -22

Jun-22

Dec-22
May -22
Ap r-22

Jan- 23
Nov- 22
Feb- 22

Sep- 22

Feb- 23

Suryoday Small Finance Bank Ltd

Source: Bloomberg

Centrum Institutional Research 9

Suryoday Small Finance Bank 10 February, 2023

Disclosure of Interest Statement

1 Business activities of Centrum Broking Centrum Broking Limited (hereinafter referred to as “CBL”) is a registered member of NSE (Cash, F&O and Currency Derivatives
Limited (CBL) Segments), MCX‐SX (Currency Derivatives Segment) and BSE (Cash segment), Depository Participant of CDSL and a SEBI registered
Portfolio Manager.
2 Details of Disciplinary History of CBL CBL has not been debarred/ suspended by SEBI or any other regulatory authority from accessing /dealing in securities market.

3 Registration status of CBL: CBL is registered with SEBI as a Research Analyst (SEBI Registration No. INH000001469)
Suryoday Small Finance
Bank
4 Whether Research analyst’s or relatives’ have any financial interest in the subject company and nature of such financial interest No

5 Whether Research analyst or relatives have actual / beneficial ownership of 1% or more in securities of the subject company at the end of the month
No
immediately preceding the date of publication of the document.
6 Whether the research analyst or his relatives has any other material conflict of interest No

7 Whether research analyst has received any compensation from the subject company in the past 12 months and nature of products / services for which
No
such compensation is received
8 Whether the Research Analyst has received any compensation or any other benefits from the subject company or third party in connection with the
No
research report
9 Whether Research Analysts has served as an officer, director or employee of the subject company No

10 Whether the Research Analyst has been engaged in market making activity of the subject company. No

11 Whether it or its associates have managed or co‐managed public offering of securities for the subject company in the past twelve months; No

Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company
12 No
in the past twelve months;
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage
13 No
services from the subject company in the past twelve months;

Member (NSE and BSE). Member MSEI (Inactive)

Single SEBI Regn. No.: INZ000205331

Depository Participant (DP)

CDSL DP ID: 120 – 12200
Single SEBI Regn. No.: IN‐DP‐537‐2020

PORTFOLIO MANAGER

SEBI REGN NO.: INP000004383

Research Analyst
SEBI Registration No. INH000001469

Mutual Fund Distributor

AMFI REGN No. ARN‐ 147569

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Centrum Institutional Research 10