Investor Presentation on the Audited Standalone Financial Results of the Bank for the Quarter and Financial Year ended March 31, 2026
ESAFSFB · price
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ESAF Small Finance Bank reported Q4FY26 PAT of Rs 24 crore, marking a return to profitability after four consecutive loss-making quarters. For FY26, the bank posted a loss of Rs 166 crore, significantly improved from Rs 521 crore loss in FY25. Gross advances grew 19.4% YoY to Rs 22,426 crore, driven by a 47% surge in the secured MARG portfolio (MSME, Agriculture, Retail, Gold Loans). The bank shifted its mix toward secured lending, with secured advances now 61% of the portfolio versus 53% last year. However, NIMs compressed sharply from 8.1% to 6.4% due to higher-cost incremental deposits and lower-yielding secured loans. Asset quality improved with GNPA at 5.4% and NNPA at 1.8%. Total deposits reached Rs 25,850 crore with 92% retail share.
The bank is successfully executing its pivot to secured lending with improving asset quality and return to quarterly profitability, but significant NIM compression remains a concern for shareholder returns and may continue weighing on the stock until margin stabilization is visible.