Suryoday Small Finance Bank reported a sharp drop in Q1 FY26 profit amid higher bad loans, weaker NII, and sector stress.

• Net interest income dropped 15.7% YoY; NIM fell from 10% to 7.2%; PPoP declined 24.5% YoY.
• Gross NPAs surged to ₹918 crore from ₹241 crore YoY; net NPA ratio worsened to 5.64% from 0.47%.
• Disbursements grew 30% YoY; deposits up 39%; bank sees traction in secured retail, MSME, and mortgage segments.