Suryoday Small Finance Bank had informed its customers through its official website that it will discontinue automatic teller machines (ATM). The bank said on its website that it would discontinue ATM services; However, it was suggested that it would offer users another option to use their debit cards. ATM of other banks. The lender wants to initiate the shut-down from October 1, 2021. The bank’s message said, “Due to operational reasons, Suryoday Bank ATMs will be closed with effect from 1 October 2021. However, you may use your Suryoday Bank ATM/Debit Card at any other bank’s ATM for your cash withdrawal requirements. can continue.”
The small finance bank said the move comes on the back of a viability issue, as many people are not using their ATMs. The bank said that customers can alternatively resort to mobile banking or internet banking for their other services. This can be done round the clock as digital facilities will be available 24×7.
Suryoday RK MD said, “We realized that a lot of customers were not using our ATMs, we could not make it a profit center, so we decided that instead of continuing with these machines, we would like to offer customers at other bank ATMs. free transactions.” Bhaskar Babu, as mentioned in The Times of India.
He further said that the number of cash transactions with the bank is very less because with the existence and penetration of UPI and digital wallets, no one goes to ATMs to withdraw cash.
Suryoday Small Finance Bank has 26 ATMs and 555 branches. Babu said about 80 per cent of the business has gone digital. This means that spending all the money on ATMs and maintaining that network is essentially a money pit for the lender in the long term. The lender will offer five to seven free transactions per month to customers where they will be allowed to use ATMs of other banks to withdraw money.
When it comes to the bank’s financial performance recently, things do not look very good as per the press release issued by the lender.
“Net interest income for the quarter ended June 30, 2021 stood at Rs 123.5 crore, a decline of 1.7 per cent over the corresponding quarter of the previous year and an increase of 42.1 per cent on a lower basis than the previous quarter. Decrease in net interest income as compared to corresponding quarter of last year mainly due to reversal of interest income of Rs 7.8 crore on NPA accounts, impact of negative carry on account of additional liquidity maintained during the quarter and increase in operating expenses Is. up to 32.8 per cent,” Suryoday Small Finance Bank said in a press release.
The lender further said, “Net net income for the quarter ended June 30, 2021 stood at Rs 146.3 crore, a decline of 5.8 per cent over the corresponding quarter of the previous year and an increase of 59.4 per cent over the previous quarter. “
The bank said that operating expenses for the quarter ended June 30, 2021 stood at Rs 92.3 crore. This represents an increase of 32.8 percent as compared to the corresponding quarter of the previous year. It also pointed to a decline of 4.8 percent compared to the previous quarter.