ESAF Small Finance Bank Limited was incorporated on May 5, 2016, at Thrissur, Kerala, as a Public Limited Company. It received its license to operate as an SFB from the Reserve Bank of India on November 18, 2016, and commenced banking operations on March 10, 2017. The Bank became a Scheduled Bank effective November 12, 2018, included in the Second Schedule to the Reserve Bank of India Act, 1934.
The bank has deep roots in India's financial inclusion journey, with its history dating back to 1992, when Kadambelil Paul Thomas, the Managing Director, founded ESAF Society. This society focused on the development of micro-enterprises, community development, and community health. ESAF Society started its micro loan activities in Kerala in 1995, establishing a strong foundation for the bank's current operations.
ESAF Small Finance Bank Ltd has a market capitalisation of ₹1,558 crore as of May 2025. The stock has faced challenges over the past year, with its share price moving down by 43.90% on BSE in the last 12 months. The 52-week high share price is ₹57.11 and the 52-week low share price is ₹24.35.
The bank reported a net loss of ₹183.19 crore in the quarter ended March 2025, as against a net profit of ₹43.35 crore during the previous quarter ended March 2024. For the full year, a net loss of ₹521.39 crore was reported for the year ended March 2025, as against a net profit of ₹425.57 crore during the previous year ended March 2024. Total Operating Income rose 1.14% to ₹3,862.22 crore in the year ended March 2025, compared to ₹3,818.53 crore during the previous year ended March 2024.
The bank reported a standalone net loss of ₹210.90 crore in Q3 FY25, as compared with a net profit of ₹112.14 crore in Q3 FY24. The bank reported a Net Interest Income (NII) of ₹487 crore, with a Net Interest Margin (NIM) of 8.64% in Q3 FY25.
- Market Capitalization: ₹1,558 crore (as of May 2025)
- FY25 Net Loss: ₹521.39 crore (vs. Net Profit of ₹425.57 crore in FY24)
- FY25 Total Operating Income: ₹3,862.22 crore (up 1.14% YoY)
- Q3 FY25 Net Loss: ₹210.90 crore (vs. Net Profit of ₹112.14 crore in Q3 FY24)
- Q3 FY25 Net Interest Income (NII): ₹487 crore
- Q3 FY25 Net Interest Margin (NIM): 8.64%
- Loan Book: ₹19,216 crore (Micro Loans ~62%, Retail & Other Loans ~38%)
- Gross Advances (as of March 31, 2025): ₹18,975 crore (up 3.74% YoY)
- Secured Advances % of Gross Advances (as of March 31, 2025): 51.64% (vs. 31.39% in March 2024)
- Deposits (as of March 31, 2025): ₹21,613 crore
- CASA (as of March 31, 2025): ₹5,784 crore (up 28.48% YoY, 3.43% QoQ)
- CASA Ratio (as of March 31, 2025): 24.85% (vs. 22.66% in March 2024)
- Gross Non-Performing Assets (GNPA): ~6.9%
- Net Non-Performing Assets (NNPA): ~2.9%
- Capital to Risk-Weighted Assets Ratio (CRAR): 22.70% (Tier I capital at 18.68%)
The Bank is one of the leading small finance banks in India, providing micro, retail, and corporate banking, along with para-banking activities such as debit cards, third-party financial product distribution, Treasury, and permitted Foreign Exchange Business. ESAF Small Finance Bank focuses on underserved communities, offering savings accounts, loans, and microfinance solutions, aiming to promote financial inclusion across India with over 500 branches serving rural and semi-urban areas.
The bank has established an extensive distribution network with 787 branches, 693 ATMs, and 1,106 customer service centres spanning across 24 states and 2 union territories as of March 31, 2025. The bank serves 89.4 lakh customers through 8,834 Customer Touchpoints, demonstrating its significant reach in the financial services sector.
ESAF Small Finance Bank primarily focuses on expanding banking access to new unbanked and underbanked areas, while also catering to customers in urban, semi-urban, rural, and rural unbanked areas. Approximately 53% of their customers are in rural and semi-urban areas, and 70% of their banking outlets are located in these regions.
The bank has been focusing on diversifying its portfolio, with secured loan disbursements surging by 172% year-on-year, reaching ₹4,226 crore in the nine months of FY25, compared to ₹1,554 crore in the same period last year. This has significantly boosted the secured asset portfolio, which now accounts for 43.35% of the loan book, up from 27.91% in the nine months of FY24.
The Board of ESAF Small Finance Bank, at its meeting held on March 21, 2025, approved a proposal to raise Tier II capital in the form of Private Placement of Unsecured, Redeemable Non-Convertible Debentures (NCDs) aggregating up to ₹250 crore in one or more tranches, during the current or subsequent financial year.
In Q1 FY26, the bank witnessed an increase in deposits by 8.67%, and secured advances grew by 66.59%. Furthermore, an NPA portfolio worth ₹733.4 crore was transferred to an Asset Reconstruction Company (ARC).
ESAF Small Finance Bank continues to play a crucial role in India's financial inclusion landscape, despite facing profitability challenges in recent quarters. The bank's strong capital adequacy, growing secured portfolio, and extensive rural presence position it as a significant player in the small finance banking sector.
