Interview with Suryoday Small Finance Bank Ltd

We are focused on completing our technology transformation project, increasing the digital outreach and network expansion through partnerships and distribution channels, says R Baskar Babu, MD and CEO, Suryoday Small Finance Bank Ltd.

How is SSFB uniquely positioned to capitalize on the tailwinds propelling India’s banking sector?

SSFB desires to be the bank of choice for 1.0% of emerging Indian households. It wants to have on offer a bouquet of lending as well as saving products for the inclusive finance customers as they graduate to being individual borrowers with multiple credit and saving needs. The Bank is focusing on going deep with its set of good customers with demonstrated credit behaviour as well as NTB customers with good credit history.

At present, the bank is focusing on scaling up the existing product suite of Inclusive Finance Loans, Secured Business Loans, and Affordable Housing Loans. We have also entered the Micro-Housing Loan segment which is of smaller ticket size between Rs 5 - Rs 8 lakh. Further, we are launching new products like two-wheeler loans from FY 23.

We have introduced STAR Loans which have an end-to-end digital process from onboarding to repayments for Inclusive finance customers. We are targeting to maintain a 40% secured lending portfolio by end of FY23.

On the liability front, we are increasing our focus on the Inclusive Finance customer base. This will lead to further building of a granular retail deposits book.

As of Q4FY22, Maharashtra and Tamil Nadu collectively contribute 58% to your overall regional portfolio mix. What is your strategy for geographical diversification in the next 2 to 3 years?

The bank is currently present in 13 states having 565 branches. We have recently started operations in Andhra Pradesh and will look to expand our network in the states where we are already present.

Presently, what are your top 3 strategic priorities? 

We had given a guidance of Rs 400 crore of new business from Q2FY23 onwards. The target is for a 40% secured portfolio and to maintain 25-30% Y-O-Y growth in AUM.

The Bank has instituted a special task force dedicated to collection of stressed accounts and shall complete the process of recovery together with a reduction in GNPA during the course of the year. We are focused on completing our technology transformation project in Q2FY23, increasing the digital outreach and network expansion through partnerships and distribution channels.

What are your key growth levers? 

• Be the Bank of choice for 1.0% of emerging Indian households, mining and deepening the existing customer base with demonstrated good credit behaviour using advanced data analytics.

• An umbrella of product bouquet for our customers across lending and deposits, with quick service delivery and turnaround times.

• Maximum digital processes with superior customer experience.