ESAF Small Finance Bank Limited has informed the Exchange about Transcript of the Earnings Conference Call held on August 11, 2025

ESAF Small Finance Bank reported Q1 FY26 total business of INR 42,507 crores, up 4.82% year-on-year (8.74% on an underlying basis after adjusting for NPA sales and technical write-offs of INR 733.4 crores). The bank is actively de-risking its loan book — micro loans shrank from INR 13,236 crores to INR 9,095 crores, while secured assets rose to 54.79% of the loan book from 32.69% a year ago, with a stated target of 70% by March 2027. Deposits grew 8.7% YoY to INR 22,698 crores with retail deposits up 13.2% and CASA up 14% YoY to INR 5,628 crores. However, profitability came under pressure — net interest income fell to INR 378 crores from INR 588 crores, NIM compressed sharply to 6% from 9.4%, and pre-provisioning operating profit dropped to INR 125 crores from INR 254 crores. Gross NPA rose to 7.5% and net NPA to 3.8%, though PCR improved to 73.2%. Management expects to return to positive ROA by end of FY26 and indicated NIM improvement ahead, but declined to give specific margin guidance.