ESAF Small Finance Bank Limited has informed the Exchange regarding Outcome of Board Meeting held on May 16, 2025.
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Awaiting price reaction for this filing.
ESAF Small Finance Bank's board approved its audited financial results for Q4 FY25 and full year ended March 31, 2025, with auditors issuing an unmodified opinion. The bank swung to a full-year net loss of Rs. 521.39 crore versus a profit of Rs. 425.57 crore in FY24, while Q4 FY25 alone posted a loss of Rs. 183.19 crore (vs profit of Rs. 43.35 crore in Q4 FY24). Provisions surged to Rs. 1,250 crore from Rs. 592 crore, and an exceptional item of Rs. 58 crore was booked for absorbing 5,109 employees from its business correspondent ES MACO. Asset quality worsened sharply, with Gross NPA rising to 6.87% (from 4.76%) and Net NPA to 2.99% (from 2.26%). On the positive side, deposits grew ~17% to Rs. 23,276 crore, and Capital Adequacy Ratio remained comfortable at 21.84%. EPS for FY25 was negative Rs. 10.13 versus positive Rs. 8.96 last year, and Return on Assets turned negative at (1.94)%.
This is a sharply negative earnings outcome for shareholders — the bank moved from healthy profitability to a sizeable loss driven by a major jump in provisioning and deteriorating asset quality, which is likely to weigh on the stock price and investor sentiment despite a clean audit opinion. The strong deposit growth and healthy capital ratio offer some cushion, but the deteriorating NPA trend and negative return on assets are key concerns to watch.