Transcript of the Earnings Conference Call held on May 4, 2026.
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ESAF Small Finance Bank reported strong Q4 FY26 results with total business of INR 48,276 crore (15% YoY growth). Gross advances grew 19% to INR 22,426 crore while deposits rose 11% to INR 25,850 crore. NIM improved to 7.3% from 6.6% quarter-on-quarter, and Q4 PAT jumped to INR 24 crore from INR 7 crore in Q3. Asset quality improved significantly with GNPA declining to 5.4% from 6.9% and slippages reducing sharply to INR 106 crore from INR 427 crore a year ago. The bank continues its strategic shift toward secured lending, with 82% of disbursements now going to secured assets and the secured portfolio mix improving to 61% from 53% last year. The bank crossed 10 million customers milestone during the year.
The improving asset quality, margin expansion, and clear multi-year targets signal the bank is emerging from a challenging period with a stronger, more diversified portfolio. The management's guidance for normalized credit cost of 2% and ROA of 2% by FY28 indicates significant earnings recovery potential as the strategic transition matures.