Suryoday Small Finance Bank IPO subscription closes today, Investors seem disinterested

Suryoday Small Finance Bank IPO subscribed 1.01 times. The public issue subscribed 2.00 times in the retail category by Mar 18, 2021. Retail investors are not showing great interest in applying for this IPO, according to the numbers.

Suryoday Small Finance Bank incorporated on 10th November 2008, is among the leading SFBs in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020. Suryoday Small Finance Bank currently offers a variety of asset and liability products and services designed for inclusive finance and general banking customers.

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Suryoday Small Finance Banks Gross Loan Portfolio has grown at a CAGR of 46.98% from Rs 1717.78 cr as on 31st March 2018 to Rs. 3,710.84 cr as on 31st March 2020 and stood at Rs 3908.23 cr as on 31st December 2020. Going forward, we expect the net advances to grow by 17.9% CAGR for the period FY20-FY23 to Rs 5794.2 cr. ‘

Suryoday Small Finance Bank Deposits are expected to grow by 28.9% CAGR for the same period to Rs. 6,099.1 cr as a result of the bank’s focus on building granular retail deposits. NIMs are expected to rebound to 9.6% from the current 8.5% (9MFY21) as the bank releases the excess liquidity held by it. PAT is expected to grow by 20% CAGR for the period FY20-FY23 to Rs 19.5 cr aided by a lower cost to income ratio of 46.7%. GNPA and NNPA levels are expected to remain elevated for the current year due to the impacts of moratorium and stress in the micro finance segment. GNPA and NNPA for FY23 are expected to settle at 3.2% and 1.5%.