ESAF Small Finance Bank Limited has informed the Exchange regarding Press Release on the Audited Standalone Financial Results of the Bank for the quarter and year ended March 31, 2025.
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ESAF Small Finance Bank reported its FY25 and Q4 results, showing strong growth in secured lending with secured loan disbursements rising to ₹5,832 crore in Q4 (from ₹2,187 crore a year ago). The gold loan portfolio nearly doubled to ₹5,734 crore, and CASA deposits grew 28% to ₹5,783 crore, improving the CASA ratio to 24.8%. Total deposits rose 17.2% to ₹23,276 crore and total business grew 8.6% to ₹42,919 crore. However, the bank posted a quarterly loss of ₹183 crore and a full-year loss of ₹521 crore (compared to a profit of ₹426 crore in FY24), driven by ₹332 crore in provisions including ₹131 crore over and above policy norms to address stress in its legacy microloan portfolio. Net Interest Income dropped to ₹436 crore in Q4 from ₹591 crore, though asset quality remained stable with Net NPA at 2.9% and Capital Adequacy Ratio at a healthy 21.8%.
Short-term sentiment may be negative due to the reported loss and elevated provisioning, but the strategic shift toward secured retail assets and strong deposit growth signal long-term stability. Shareholders should monitor microloan recovery and the bank's ability to sustain its pivot toward secured lending.