History

Suryoday Small Finance Bank Limited, initially founded as Suryoday Micro Finance Private Limited in Chennai, Tamil Nadu, began its journey as a private limited company. This establishment occurred following the issuance of a certificate of incorporation on November 10, 2008, in Tamil Nadu. The Bank primarily core priorityes on providing microcredit to economically disadvantaged women who lack access to traditional banking facilities. It adopts a modified version of the Grameen model, utilising Joint Liability Groups (JLGs), where each group member ensures the loan repayment of others. The Bank also offers various financial services, including mortgage loans, commercial vehicle loans, and financing to micro, small, and medium enterprises (MSMEs) and Non-banking Financial Companies (NBFCs). In its evolution, the bank transformed into a public limited company, changing its name to Suryoday Micro Finance Limited. This change was formalised with a new certificate of incorporation dated June 16, 2015. Subsequently, the bank's name was altered to Suryoday Small Finance Bank Limited, and it received a fresh certificate of incorporation on January 13, 2017. The bank officially commenced its operations on January 23, 2017. It was recognised in the RBI Act's second schedule, as indicated in a notification dated July 24, 2017, published in the Gazette of India on September 2, 2017. As of June 2021, Suryoday Small Finance Bank has established a significant presence across 13 states and Union Territories in India, with 556 banking outlets, particularly strong in Maharashtra, Tamil Nadu, and Odisha. In 2021, the bank marked a significant milestone with its successful Initial Public Offering (IPO) and its listing on NSE and BSE on March 26, 2021.

Business Segments

Suryoday Small Finance Bank (SFB) offers a variety of financial services:

1. Accounts & Cards:They provide several savings accounts, including Share Your Smile, NextGen, Blossom Women, and Salary Savings Accounts. They also issue RuPay Debit Cards with unique features and benefits.
2. Loans:The bank delivers various loans such as microfinance, commercial vehicle, home, secured business, personal, micro mortgages, two-wheeler, and MSME loans.
3. NRI Banking:Suryoday SFB offers non-resident fixed deposits (NRFDs) for NRIs, with interest rates from 4.00% to 5.50% based on tenure. They also offer doorstep banking for NRI customers.
4. Investment and Insurance:The bank partners with ICICI Lombard, Kotak General, and SBI to offer general insurance policies. They also provide NRE savings accounts as a secure investment option for NRIs.

Key Personnel

Baskar Babu Ramachandran, Managing Director and CEO  Baskar Babu Ramachandran serves as the managing director and CEO of the bank. With an extensive background in the BFSI industry, he brings a wealth of experience to his role. He held significant positions in several companies before establishing Suryoday Micro Finance Private Limited. His roles included Vice President of Quality and Operations at GE Capital Transportation Financial Services Limited and Assistant Vice President at HDFC Bank Limited.

Management Outlook

1. The bank core priorityes on a particular customer segment post-pandemic, with improved portfolio quality. It plans to introduce a Micro Loan Against Property products and expects strong asset quality due to robust risk management.
2. Mortgages remain a key core priority, especially in the affordable housing sector. The bank is determined to grow in existing and new regions, targeting loans for self-employed and salaried individuals utilising its inclusive finance network.
3. The bank's strategy in commercial vehicle financing has shifted towards refinancing used or medium-sized vehicles for smaller fleet owners, core prioritying on smaller deals to minimise default risks. It is determined to enhance the digital customer experience and expand its reach.
4. The Sarathi App has been launched for Vikas Loan applications, enabling digital loan applications and pre-disbursement checks by employees and trusted partners, improving the efficiency of the loan process.