SURYODAY SMALL FINANCE BANK Q2 CONCALL: RETAINS 30–35% LOAN GROWTH & ₹300 CR PAT GUIDANCE; TARGETS ₹500–600 CR CLOU PORTFOLIO, 50 NEW BRANCHES & STRONGER SECURED LENDING

• FY27 Loan Growth Guidance: Management retained its guidance of 30–35% advances growth, expressing confidence in delivering above the lower end of the range. • FY27 PAT Guidance: Management maintained its approximately ₹300 Cr full-year profit target despite uncertainty surrounding drought conditions and the CGFMU scheme. • FY28 Growth Outlook: Management aims to sustain 30–35% advances growth over the next couple of years, although formal FY28 guidance is expected closer to Q4 FY27. • Loan Portfolio Mix: Management targets approximately 45% inclusive finance and 55% retail assets over the medium term, compared with the current mix of 41% and 59%, respectively. • Secured Lending Growth: Management expects mortgage and commercial vehicle portfolios to maintain growth above 35%, supported by demand and continued expansion. • Retail Asset Outlook: Management expects secured retail assets to contribute at least 55% of the loan portfolio, potentially slightly higher depending on inclusive finance growth. • Microfinance Growth: Management expects inclusive finance disbursements of approximately ₹450–550 Cr per month over the next five months. • Branch Expansion: Management plans to add approximately 50 branches over the coming four to five months, with around 10 branches already opened. • New Branch Contribution: Management expects the new branches to contribute approximately ₹30 Cr in additional monthly disbursements once operational. • CLOU Portfolio Target: Management expects its credit-line-on-UPI portfolio to reach approximately ₹500–600 Cr by FY27-end, compared with around ₹350 Cr currently. • Digital Banking Growth: More than 14 lakh customers have been targeted under the CLOU programme, while digital deposit channels have onboarded over 2 lakh customers. • CLOU Revenue Outlook: Management expects convenience fee income from the CLOU business to increase as the portfolio scales. • CLOU Credit Risk: Management highlighted that credit risk remains contained so far but indicated that approximately one year of portfolio performance is needed for a more reliable assessment. • CLOU Business Model: Customers generally repay their outstanding balances in full the following month, with average credit exposure lasting approximately 15–20 days. • NIM Outlook: Management expects broadly stable net interest margins with scope for marginal improvement, supported by loan book composition and higher earning assets. • Loan Yield Outlook: Management expects the yield on the paying loan book to remain around the current level of slightly above 17.5% over the next two quarters. • Microfinance Yield: Management indicated a yield of approximately 25.8% on its microfinance portfolio. • Cost-to-Income Outlook: Management expects operating efficiencies from digital banking and business growth, while CGFMU-related expenses are unlikely to decline substantially. • Adjusted Cost-to-Income: Cost-to-income ratio adjusted for digital partner payouts stood at approximately 68.6%, compared with the reported ratio of around 70.5–70.6%. • CGFMU Cover Status: The scheme had not yet reopened for FY27 disbursements as of the earnings call. Management expects government notification and renewal but has not received final confirmation. • Existing CGFMU Coverage: Loans disbursed up to March 31, 2026, remain covered under the scheme, with renewals completed. • CGFMU Premium Provision: Bank has provided approximately ₹40–45 Cr during H1 FY27 toward expected premiums, with management indicating no additional P&L impact merely from paying those already-provided premiums. • CGFMU Claims: Bank received approximately ₹387 Cr of CGFMU claims in July 2026, supporting the reduction in legacy stressed assets. • Further CGFMU Claims: Management expects only a small remaining claim cohort of approximately ₹17–18 Cr during the rest of FY27. • Drought Exposure: Bank has approximately ₹1,000–1,100 Cr of exposure in drought-affected regions of Karnataka and Maharashtra. • Drought Impact: Management has not observed a significant deterioration in collections through October but remains cautious about a possible delayed impact. • Drought Risk Measures: Bank may restrict onboarding new-to-credit customers in selected drought-affected districts while continuing to serve existing borrowers with satisfactory repayment histories. • Micro-Mortgage Underwriting: Management indicated that lending standards may be tightened in affected areas if conditions deteriorate. • Collection Efficiency: Inclusive finance current-bucket collection efficiency stood at 99.3% in Q2, compared with 99.2% in Q1 FY27. • Capital Raising: Bank raised ₹200 Cr of Tier-2 capital in October 2026, expected to improve capital adequacy by approximately 1.8 percentage points. • Additional Capital Plan: Management plans to raise another ₹200 Cr of Tier-2 capital by December 2026 or Q4 FY27, subject to market conditions. • Capital Adequacy: CRAR stood at 19.37% in Q2 before the October Tier-2 capital raise. • Q2 Advances: Gross advances including IBPC increased 34.6% YoY to ₹14,972 Cr. • Q2 Disbursements: Disbursements increased 27.4% YoY to ₹3,096 Cr. • Q2 Deposits: Total deposits increased 34% YoY to ₹16,184 Cr. • Retail Deposits: Retail deposits including CASA stood at ₹13,676 Cr, representing approximately 84.5% of total deposits. • CASA Ratio: CASA stood at 19.4%, while absolute CASA balances increased 26.8% YoY. • Q2 NII: Net interest income increased 42.8% YoY to ₹368.8 Cr. • Q2 NIM: Net interest margin stood at 7.2%, improving 28 basis points YoY. • Q2 Operating Profit: Pre-provision operating profit stood at ₹145.5 Cr. • Q2 Net Profit: Profit after tax stood at ₹76.5 Cr. • Q2 Asset Quality: Gross NPA improved to 2.9% from 6.5% QoQ, largely following CGFMU claim receipts and legacy asset write-offs. • Legacy Write-Offs: Bank recorded approximately ₹596 Cr of legacy stressed-asset write-offs and settlements during Q2, predominantly in the microfinance portfolio. • Q2 Slippages: Gross slippages stood at approximately ₹122 Cr, with around ₹65 Cr from inclusive finance and the balance primarily from secured lending. • PSLC Income: Income declined to approximately ₹8 Cr in Q2 from around ₹45 Cr in Q1, reflecting seasonal trends. • PSLC Outlook: Management expects approximately ₹5 Cr of PSLC income in Q3 FY27. • CLOU Fee Growth: Convenience fees increased by approximately ₹14 Cr QoQ, helping offset lower PSLC income. • Provisioning: Management identified an approximately ₹6 Cr provision related to a financial institutions group exposure as a specific Q2 item. • Key Monitorables: CGFMU scheme renewal, drought-related collection trends, microfinance slippages, CLOU credit performance, deposit mobilization and completion of the planned Tier-2 capital raise.

SURYODAY SMALL FIN BK LTD

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