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ESAF Small Finance Bank posted a net profit of Rs 80 crore for the quarter ended 30 June 2026, reversing a loss of Rs 81 crore in the corresponding period last year. Total income rose to Rs 1,346 crore from Rs 1,023 crore, while interest income grew 32 per cent to Rs 1,098 crore. Gross NPAs declined to 5.40 per cent from 7.48 per cent, and net NPAs fell to 0.83 per cent from 3.77 per cent. The bank's total business crossed Rs 50,000 crore for the first time during the quarter.
ESAF Small Finance Bank, the Kerala-based lender, reported a net profit of Rs 80 crore for the first quarter ended 30 June 2026, reversing a loss of Rs 81 crore recorded in the corresponding period a year earlier, the bank said in a regulatory filing on Friday, citing higher income and a decline in bad loans.
Total income for the quarter rose to Rs 1,346 crore, up from Rs 1,023 crore in the year-ago period. Interest income grew by 32 per cent year-on-year to Rs 1,098 crore, compared with Rs 828 crore in the corresponding quarter of the previous fiscal. The bank's Net Interest Margin improved to 7.9 per cent, from 6 per cent in the same quarter of FY26.
Asset quality showed marked improvement during the period. Gross Non-Performing Assets declined to 5.40 per cent of gross advances as of 30 June 2026, from 7.48 per cent at the end of the first quarter of the previous fiscal year. Net NPAs as a proportion of net advances fell significantly to 0.83 per cent, compared with 3.77 per cent a year earlier. The bank's provision coverage ratio rose to 85.5 per cent, from 73.2 per cent as of 30 June 2025.
Provisions and contingencies, however, increased marginally to Rs 242 crore during the quarter, compared with Rs 234 crore set aside in the same period last year. The bank's capital adequacy ratio improved to 23.86 per cent, up from 22.74 per cent as of 30 June 2025.
The bank's total business crossed Rs 50,000 crore for the first time during the quarter, which it attributed to robust growth in secured lending and retail deposits, describing the milestone as reflective of the successful execution of its strategic transformation plan.
Commenting on the results, ESAF Small Finance Bank Managing Director and CEO K Paul Thomas said the first quarter of FY27 reflected steady progress in the bank's transformation journey, with its strategy of building a diversified, secured and customer-centric portfolio delivering encouraging results across growth, profitability and asset quality.
Thomas said secured assets had increased to 62 per cent of advances during the quarter, which he said had strengthened the resilience of the bank's balance sheet alongside the growth in total business. He added that the bank remained focused on expanding its presence across the MSME, agriculture, retail, gold loans and emerging household segments, while continuing efforts to deepen financial inclusion.
Source: PTI
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