ESAF Small Finance Bank Limited has informed the Exchange about Key Business Updates for the quarter ended June 30, 2025.
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ESAF Small Finance Bank reported total deposits of ₹22,698 crore, up 8.67% year-on-year but down 2.49% from the previous quarter. CASA deposits grew strongly at 14.23% YoY to ₹5,628 crore, lifting the CASA ratio to 24.80%. However, gross advances fell 2.98% YoY to ₹18,224 crore, dragged by a sharp 39.14% YoY drop in micro loans to ₹7,522 crore. The bank is pivoting sharply toward secured lending, with retail and other secured loans rising 66.59% YoY to ₹10,702 crore, now forming 58.72% of gross advances (up from 34.20% a year ago). The bank also transferred ₹733.40 crore of NPA and technical write-off pool to an asset reconstruction company for ₹73.34 crore (about 10% recovery). Customer base stood at 95.80 lakh across 788 branches, 713 ATMs and 1,095 service centres in 24 states.
The steep drop in micro loans and overall advances reflects a deliberate strategic shift away from unsecured lending toward secured products, which should support asset quality but may weigh on near-term growth and profitability. The NPA transfer is a positive balance sheet cleanup, though the quarter-on-quarter decline in both deposits and advances could concern investors looking for consistent growth momentum.