Announcement under Regulation 30 of SEBI LODR Regulations, 2015
ESAFSFB · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.1 pts less than Nifty Microcap 250 and 0.5 pts less than its Other Bank peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Brickwork Ratings has downgraded ESAF Small Finance Bank's Basel III Tier II Bonds worth Rs 20 crore from BWR A-/Stable to BWR BBB+/Stable, citing continued weakening of asset quality with Gross NPA crossing 7.48% in Q1FY26. The bank reported a net loss of Rs 81.22 crore in Q1FY26 and Rs 521.4 crore loss for FY25, marking its fifth consecutive quarter of losses. Despite weak profitability, the bank maintains adequate capitalization with CRAR at 22.74% and raised an additional Rs 50 crore via Tier II subordinated bonds on August 14, 2025. The rating remains in investment grade territory but signals growing credit risk, mainly driven by stress in the microfinance portfolio.
Negative for the stock — rating downgrade and rising NPAs signal financial stress, though capital adequacy remains comfortable. Investors should watch for further deterioration in asset quality and improvement in collection efficiency.