Suryoday Small Finance Bank stock has seen a significant correction after a weak listing because of its asset quality issues. The bank’s large presence in industrialised states of Tamil Nadu and Maharashtra and mostly in urban areas have contributed to the relatively weaker asset quality.
While collection efficiency had touched 87 percent in March, it is down to 82 percent in April and is expected to have fallen further in May due to the second wave of COVID-19. However, the silver lining is the management’s confidence that most of the stress is temporary.
In the special segment Moneycontrol Pro Ideas For Profit, moneycontrol.com’s Madhuchanda Dey gets more details on the company’s performance.
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