ESAF Small Finance Bank Limited has informed the Exchange about Transcript of the Earnings Conference Call held on May 19, 2025.
ESAFSFB · price
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ESAF Small Finance Bank reported a Q4 FY25 net loss of INR 183 crores (full-year loss of INR 521 crores) driven by continued microfinance stress and a cumulative INR 1,225 crore technical write-off. The loan book was nearly flat at INR 19,643 crores, while deposits grew 17% YoY to INR 23,276 crores with CASA ratio improving to 24.8%. The bank is aggressively shifting toward secured lending, which now constitutes 52% of the book (up from 29% in March 2024), with a long-term target of 70% by March 2027. NIM compressed to 6.9% from 10%, but the CFO guided that the bank can operate comfortably at around 8% NIM with a higher secured mix, expecting positive ROA by H2 FY26. Gross NPA held steady at 6.9% and provision coverage ratio strengthened to 80.5%.
The portfolio rebalancing toward secured assets supports long-term asset quality, but near-term profitability remains under pressure. Shareholders should track the H2 FY26 return to positive ROA and the secured-lending share as the key milestones for re-rating.