ESAF Small Finance Bank has announced strong financial performance for the quarter and half year, showcasing impressive growth across secured lending and retail deposits.
The bank’s total business stood at Rs 42,031 crore, marking a 5.2 per cent year-on-year rise driven by secured loan expansion and retail deposit traction. Gross advances grew to Rs 19,137 crore, up 4.3 per cent YoY, while total deposits reached Rs 22,894 crore, a 5.9 per cent increase.
Secured loan disbursements soared 161 per cent to Rs 7,292 crore, accounting for 82 per cent of total disbursements. The gold loan book more than doubled to Rs 7,500 crore from Rs 3,741 crore a year ago, emerging as a major growth driver along with agriculture, MSME, mobility, and mortgage segments. The microloan portfolio’s share dropped from 61 per cent to 39 per cent, reflecting a shift toward a more secured and diversified lending structure.
ESAF narrowed its quarterly net loss to Rs 116 crore from Rs 190 crore a year earlier, driven by improved operational efficiency and stronger asset quality. CASA balances rose 13.7 per cent year-on-year to Rs 6,046 crore, improving the CASA ratio to 26.4 per cent from 24.6 per cent. Retail deposits now account for 96 per cent of total deposits, underscoring customer trust and franchise stability. Retail term deposits rose 10.1 per cent to Rs 16,033 crore from Rs 14,562 crore in September 2024.
Provision coverage improved to 74.4 per cent, while net NPA remained stable at 3.8 per cent. The Capital Adequacy Ratio stood at 22.4 per cent, with Tier-I capital at 16.9 per cent. ESAF added nearly two lakh new customers in the quarter, taking its total base to 97.8 lakh across 24 states and 2 Union Territories.
Dr. K. Paul Thomas, Managing Director and CEO, said the results reflect “deep and enduring trust from customers” and the “bank’s steady transition toward secured, high-quality growth.”
He highlighted that nearly 96 per cent of deposits now come from retail customers, and the secured portfolio, particularly gold, mobility, agri, and mortgage loans, is driving sustained momentum.
With 788 branches, 718 ATMs, and over 1,100 customer service centres nationwide, ESAF Small Finance Bank continues to advance its mission of inclusive banking while strengthening its balance sheet and enhancing customer engagement through technology-driven initiatives.
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