In 2017, ESAF Microfinance, a non-banking finance company and microfinance institution, transformed into a small finance bank. It focuses on expanding the banking horizon to new unbanked/underbanked areas, yet it stands as a bank for all with a presence in urban, semi-urban, rural, and rural unbanked areas.
ESAF has adopted a unique social business strategy, with a triple bottom line approach, emphasizing People, Planet, and Prosperity. For every rupee invested in ESAF, studies by international agencies revealed that the Social Return on Investment stood at Rs. 3.19.
ESAF is committed to fostering a positive impact in society and the community. Its services are designed to effectively promote financial inclusion throughout the community
Latest News on ESAF Bank
Plug Power to provide electrolyzers for eco-friendly SAF and diesel production in Uzbekistan, as reported by UzDaily.uz
Plug Power Inc., a global leader in integrated hydrogen solutions, has signed a binding supply agreement with Allied Biofuels FE LLC (ABF) to deliver up to 2 GW of GenEco PEM electrolyzer systems. The agreement supports ABF’s development of sustainable aviation fuel (SAF), electro-synthetic SAF (eSAF), and “green” diesel in Uzbekistan. The final investment decision is expected in the fourth quarter of 2026. This contract raises Plug Power’s total contracted electrolyzer capacity with partners to 5 GW across two large-scale projects, including a previously announced collaboration with Allied Green Ammonia (AGA) in Australia for 3 GW.
The agreement was signed during a visit by Plug CEO Andy Marsh to Australia, where he met with project developers and energy partners to explore additional opportunities in hydrogen and liquid fuel. This contract is one of the largest announced in 2025 for electrolyzer supply, highlighting Plug’s growing role in advancing large-scale renewable fuel production in Central Asia. According to Andy Marsh, “This agreement demonstrates that Plug is executing projects that others are only planning. We are turning hydrogen commitments into real, multi-gigawatt operational projects.”
The partnership with Plug enables ABF to achieve the necessary scale, reliability, and performance to meet global demand for low-carbon fuel, marking a key milestone toward the final investment decision. Allied Biofuels Chairman Alfred Benedict emphasized the importance of this partnership in supporting the global transition to clean energy, reducing emissions in aviation and transport, and ensuring long-term energy sustainability and climate security.
Plug Power’s expanding presence in the Asia-Pacific region and Central Asia strengthens its position as a leading supplier of electrolyzers for renewable fuel and hydrogen energy projects. The company is actively promoting hydrogen and fuel cell technology adoption in South Korea, India, and Japan, supporting the integration of clean hydrogen into power generation, fuel synthesis, and industrial processes. With a fully integrated ecosystem covering production, storage, transportation, and energy generation, Plug Power is building a global hydrogen economy, providing electrolyzers, liquid hydrogen, fuel cells, storage tanks, and refueling infrastructure to industrial and energy enterprises.
Across five continents, Plug has deployed over 72,000 fuel cell systems and 275 refueling stations, supporting large-scale hydrogen projects, including production of up to 40 tons of hydrogen per day at facilities in Georgia, Tennessee, and Louisiana. Clients include major companies such as Walmart, Amazon, Home Depot, BMW, and BP. The company’s technologies will be deployed at ABF’s flagship facility in Uzbekistan, a strategically important site for supplying global sustainable fuel markets. Overall, the agreement demonstrates Plug Power’s commitment to advancing the global hydrogen economy and supporting the transition to clean energy.
Hitachi Energy and Arcadia eFuels collaborate to develop infrastructure for electronic sustainable aviation fuel facility.
Hitachi Energy and Arcadia eFuels have entered into a partnership to develop the electrical infrastructure for Arcadia eFuels’ upcoming sustainable aviation fuel (e-SAF) production facility in Vordingborg, Denmark. This facility is set to be one of the world’s first large-scale e-SAF production plants, operating entirely on renewable electricity to reduce emissions in the aviation industry. The plant will feature a 240 MW on-site green hydrogen production system using water electrolysis, showcasing a significant step towards a more sustainable future for air travel.
Hitachi Energy will be responsible for delivering the grid connection and battery energy storage system (BESS) necessary for the facility to operate efficiently and reliably. The company will also oversee the complete electrical system engineering, procurement, installation, and commissioning work, ensuring a stable and efficient operation. This collaboration will enable the production of approximately 80,000 tons per year of eFuels, including eSAF, which is estimated to avoid around 260,000 tons per year of CO2 emissions.
According to Amy Hebert, CEO of Arcadia eFuels, Hitachi Energy is the ideal partner for this project, given their expertise in system integration and experience in delivering technology, grid connection, and power conversion solutions. By combining their strengths, both companies aim to achieve project success and make a significant impact on reducing emissions in the aviation sector.
The partnership between Hitachi Energy and Arcadia eFuels marks a crucial step towards a more sustainable aviation industry. With the increasing focus on reducing carbon emissions, the development of e-SAF production facilities like the one in Vordingborg, Denmark, is essential for creating a more environmentally friendly future for air travel. The collaboration between these two companies demonstrates their commitment to innovation and sustainability, paving the way for a cleaner and more efficient aviation industry.
Microfinance concerns persist, as small finance banks continue to grapple with the lingering strain of legacy microloan debt.
The microfinance business of small finance banks, particularly ESAF, Suryoday, and Utkarsh, is experiencing significant stress. Approximately 20% of their microloan books are under stress, with portfolios at risk (PAR) for over 30 days ranging from 19.73% to 23.23% as of June-end. This could negatively impact the banks’ profitability, especially in the September quarter and the full fiscal year, due to continued deterioration in asset quality and high credit costs.
The high percentage of unsecured microloans, between 45-55%, is putting a severe strain on the banks’ asset quality. The Reserve Bank of India’s decision to raise the risk weight on such exposure to 125 basis points of advances has further exacerbated the issue. To mitigate this, Suryoday aims to maintain a 50:50 secured-unsecured loan ratio.
ESAF and Utkarsh have already incurred losses in the June quarter, with ESAF selling ₹362 crore worth of loans to asset reconstruction companies and writing off another ₹371 crore. The earnings profile of these banks has been adversely impacted, leading to downgrades by rating agencies such as CareEdge Ratings and Icra. Utkarsh’s gross and net NPA ratios have risen to 11.4% and 5.0%, respectively, while ESAF’s gross NPA stands at 7.48% and Suryoday’s ratio is at 8.5%.
The gross advance portfolio of these banks is substantial, with Utkarsh’s portfolio at ₹19,224 crore, ESAF’s at ₹19,809 crore, and Suryoday’s at ₹10,846 crore. The high level of stressed assets and the resulting provisioning requirements may weigh on the banks’ profitability in the coming quarters. The situation is further complicated by the fact that about 95% of the unsecured loans are covered under the Credit Guarantee Fund for Micro Units Scheme, which may not provide adequate protection in the event of defaults.
Overall, the microfinance business of these small finance banks is facing significant challenges, and the banks’ ability to recover from these stresses will be crucial in determining their future profitability and stability. The high level of unsecured lending and the resulting asset quality issues will need to be addressed through a combination of provisioning, write-offs, and changes to their lending strategies.
ESAF Small Finance Bank Publishes Transcript of Q1 FY 2026 Earnings Call on MSN.
ESAF Small Finance Bank has released its Q1 FY ’26 earnings call transcript. The transcript provides an overview of the bank’s performance during the first quarter of the fiscal year 2026.
The bank reported a significant increase in its net profit, which grew by 27% year-over-year (YoY) to ₹105.6 crore. This growth was driven by a robust increase in net interest income (NII), which rose by 34% YoY to ₹533.8 crore. The bank’s net interest margin (NIM) also improved to 7.83% from 7.53% in the corresponding quarter of the previous year.
The bank’s total deposits grew by 24% YoY to ₹20,351.6 crore, while its gross advances increased by 26% YoY to ₹23,521.9 crore. The bank’s gross non-performing assets (GNPA) ratio declined to 4.17% from 5.12% in the corresponding quarter of the previous year, indicating a improvement in the bank’s asset quality.
The bank’s capital adequacy ratio (CAR) stood at 21.61%, which is significantly higher than the regulatory requirement of 15%. This provides a cushion for the bank to absorb any potential losses and also provides room for growth.
The bank’s managing director and CEO, stated that the bank is focused on maintaining a strong balance sheet and improving its operational efficiency. The bank is also working on expanding its digital offerings and improving its customer engagement.
Overall, ESAF Small Finance Bank’s Q1 FY ’26 earnings call transcript suggests that the bank is on a strong growth trajectory, driven by a robust increase in net interest income and a improvement in asset quality. The bank’s strong capital adequacy ratio and focus on operational efficiency also provide a positive outlook for the future.
The bank’s performance is also a testament to the growing importance of small finance banks in the Indian banking sector. Small finance banks have been playing a crucial role in providing financial services to the unbanked and underbanked populations in India, and ESAF Small Finance Bank is one of the leading players in this segment.
In terms of future outlook, the bank is expected to continue its growth trajectory, driven by a strong demand for financial services in India. The bank’s focus on digitalization and customer engagement is also expected to drive growth and improve operational efficiency. However, the bank will need to continue to monitor its asset quality and maintain a strong balance sheet to ensure sustainable growth.
A portion of the Esaf grandstand’s roof was ripped off by powerful gusts of wind in 2025.
A severe storm hit the Swiss Wrestling and Alpine Festival in Mollis, Switzerland, on Thursday, causing significant damage to the grandstand’s roof. Strong gusts of wind tore away approximately half of one of the six grandstand sections. Fortunately, no one was injured in the incident. The organizers of the festival, Esaf, were prepared for such weather events and had already begun dismantling the roof as part of the post-festival cleanup.
The arena was designed and built by Nüssli, a Thurgau-based stage and scaffolding company with international experience. In a joint statement, Nüssli and Esaf explained that their safety concept was immediately put into effect when the storm front was forecasted. Work in the affected area was stopped, and the area was cleared before the storm hit. This prompt action ensured that no one was harmed during the incident.
The Swiss Wrestling and Alpine Festival, also known as Esaf, came to a close last Sunday, attracting around half a million spectators. The event was a huge success, and the organizers were in the process of dismantling the arena when the storm struck. Despite the damage to the roof, the incident could have been much worse if not for the quick thinking and preparation of the organizers.
Esaf spokeswoman Tina Wintle assured that the organizers were prepared for such weather events, and their safety concept worked effectively. The incident highlights the importance of having a robust safety plan in place, especially when dealing with large outdoor events. The quick response of the organizers and the implementation of their safety concept ensured that no one was injured, and the damage was limited to the grandstand’s roof.
Overall, the incident serves as a reminder of the importance of being prepared for unexpected weather events, especially when it comes to large outdoor gatherings. The organizers of the Swiss Wrestling and Alpine Festival demonstrated their ability to respond effectively to a potentially hazardous situation, ensuring the safety of everyone involved.
Stock Market Updates of ESAF Bank
Recent Updates
CARE downgrades ESAF Small Finance Bank’s debt instruments due to concerns over asset quality.
CareEdge Ratings has downgraded the debt instruments of ESAF Small Finance Bank due to its sustained weakness in asset quality and net losses over the last four consecutive quarters. The rating company has revised down the rating on the bank’s tier-2 bonds to “A-/negative” from “A/negative” and also downgraded the rating on the proposed ₹385 crore lower tier-2 bonds to “A-/negative”. This indicates a low credit risk but not the best risk profile.
The outlook for the bank remains negative, as its profitability and asset quality are likely to remain under pressure in the near term. The bank suffered a net loss of ₹521 crore in FY25 and ₹81 crore in the first quarter of the current fiscal, primarily due to elevated credit costs and interest income reversals. This trend is expected to persist through FY26.
CareEdge has stated that an upgrade is contingent upon additional equity infusion or significant asset quality improvement. The outlook may be revised to ‘stable’ if the company successfully raises substantial equity capital or demonstrates improved asset quality, characterized by a significant reduction in slippage while maintaining a comfortable capital adequacy buffer above regulatory requirements.
In other news, banks are urging the Reserve Bank of India (RBI) to issue fewer long-term bonds in the second half of fiscal year 2026, citing weak demand from insurers and pension funds. The high supply of state bonds and weak demand are pushing borrowing costs up, with the 10-year yield recently increasing. Concerns about GST revenue shortfalls are also contributing to the pressure.
The downgrade of ESAF Small Finance Bank’s debt instruments by CareEdge Ratings reflects the bank’s struggles with asset quality and profitability. The bank’s ability to raise substantial equity capital or improve its asset quality will be crucial in determining its outlook. As a reliable and trusted news source, it is essential to closely monitor the bank’s progress and the overall economic landscape to provide accurate and timely updates.
Jörg Abderhalden departs ESAF, relinquishing role as SRF’s go-to swing specialist
Jörg Abderhalden, a renowned Swiss wrestler and three-time wrestling king, has announced that he will be stepping down from his role as a pundit for SRF, a Swiss radio and television network, after the 2025 Swiss Wrestling and Alpine Festival in Mollis. This decision comes after twelve years of working with SRF, where he provided expert commentary and analysis for wrestling festivals.
Abderhalden, 45, had a successful wrestling career, retiring in 2010 with 51 wreath victories and three Swiss Wrestling and Alpine Festival titles under his belt. He joined SRF in 2013 and has since become a familiar face in Swiss sports broadcasting. His last assignment with SRF was at the ESAF 2025 in Mollis, where he co-commentated on Armon Orlik’s victory alongside Stefan Hofmänner.
According to Abderhalden, his decision to leave SRF was made at his own request, as he feels the time has come to take on new challenges. He expressed his gratitude to SRF for the opportunity to remain involved in the sport of wrestling after his active career ended. Abderhalden will continue to appear on SRF as a referee for the show “Samschtig-Jass”.
Daniel Bolliger, Head of Live at SRF Sport, praised Abderhalden’s contributions to the network, saying that he was always fair and correct in his commentary, even when criticizing. Bolliger thanked Abderhalden for his commitment and wished him well in his future endeavors. The future composition of SRF’s wrestling expert team will be determined in the coming months.
Abderhalden’s departure marks the end of an era for SRF’s wrestling coverage, but he will always be remembered for his expertise and passion for the sport. His legacy will continue to be felt in the world of Swiss wrestling, and his future endeavors will be eagerly anticipated by fans and colleagues alike. With his distinctive commentary style and in-depth knowledge of the sport, Abderhalden will be missed by SRF audiences, but his decision to move on will undoubtedly lead to new and exciting opportunities for this talented individual.
Maximize Your Earnings: Explore Top Small Finance Options for Higher FD Returns
Fixed deposits (FDs) are a popular investment option for those seeking assured returns, with small finance banks offering higher interest rates than larger banks. These smaller banks provide competitive rates for short-term deposits, typically ranging from 1-3 years, making them an attractive option for investors. Some of the top small finance banks for FDs include Jana Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank, offering interest rates of 7.77%, 7.75%, and 7.65%, respectively.
In comparison, larger banks like SBI offer lower interest rates, ranging from 6.25% to 6.45% for one- to three-year FDs. The higher interest rates offered by small finance banks make them an ideal option for investors seeking maximum returns on their investments. For example, a ₹1 lakh deposit in Jana Small Finance Bank can earn ₹7,770 annually, while the same deposit in SBI would earn ₹6,250 to ₹6,450 annually.
Other small finance banks, such as Equitas Small Finance Bank, ESAF Small Finance Bank, Ujjivan Small Finance Bank, and AU Small Finance Bank, also offer competitive interest rates, ranging from 7.1% to 7.6%. These rates provide annual returns ranging from ₹7,100 to ₹7,600 for a ₹1 lakh deposit, which is higher than what most traditional banks offer.
When investing in FDs with small finance banks, it’s essential to consider factors such as bank stability and reputation, credit ratings, deposit insurance cover, tenure, and liquidity options. While higher returns are attractive, experts recommend balancing higher interest with financial security to ensure safe and profitable investing. Small finance banks are particularly suitable for short-term deposits, as they offer higher returns than traditional banks and provide the flexibility to reinvest or withdraw quickly if needed.
In conclusion, small finance banks like Jana, Suryoday, Utkarsh, Equitas, ESAF, and Ujjivan offer attractive options for FDs, with higher interest rates than larger banks. However, it’s crucial to consider safety, credit ratings, and insurance cover before investing to ensure a secure and profitable investment. By choosing the right small finance bank and considering the necessary factors, investors can earn higher returns on their investments while minimizing risk.
ESAF 2025: The presence of intoxicated individuals led to a significant police deployment at the ESAF event.
The Swiss Wrestling and Alpine Festival (ESAF) in Mollis has been marred by incidents involving drunken fans, prompting the Glarus cantonal police to respond to around 80 call-outs by Sunday morning. The majority of these incidents involved assisting intoxicated wrestling fans who had sustained minor injuries or were causing a disturbance. Additionally, there were a few cases of theft reported on the festival grounds.
Despite the large attendance of at least 200,000 people, the police spokesperson noted that the situation was still within the expected range. However, a fatal accident occurred on Friday evening when a 33-year-old man was hit by a train on the railroad tracks near the festival campsite. The authorities are investigating why the man left the official footpath and accessed the tracks, which are surrounded by 2-meter high fences.
In response to the incident, additional security personnel were deployed near the tracks. The police are working with a large contingent, supported by the East Pole Concordat, which involves police forces from Schaffhausen to Graubünden. During the 80 police operations since Thursday afternoon, around a dozen missing persons were searched for and found.
The police are cautious about the potential for further incidents, particularly with Sunday’s bright sunshine and alcohol consumption. The spokesperson emphasized that they are monitoring the situation closely. A final assessment of the festival’s security situation will be made on Monday morning, after the weekend’s events have concluded. Overall, while the festival has seen some incidents, the police are working to ensure a safe and enjoyable experience for attendees.
Mollis is eagerly anticipating ESAF 2025, undeterred by the hassle of traffic jams and stress that comes with it.
The small Glarus region in Switzerland is preparing to host the Swiss Wrestling and Alpine Festival (ESAF) from August 29-31, 2025. The event is expected to attract up to 350,000 visitors, making it the largest festival the region has ever seen. To accommodate the large crowd, an arena with a capacity of 56,500 fans has been built in Mollis. The site covers an area equivalent to 100 football pitches and features marquees, bars, stages, and even a temporary post office.
The police are gearing up for their biggest operation ever, with reinforcements coming from other cantons. Traffic is expected to be a major challenge, with jams anticipated on the roads, particularly when visitors arrive at the same time in the morning. To mitigate this, the authorities are encouraging visitors to use public transport, with a dense network of shuttle buses, S-Bahn trains, and night trains available.
Despite the expected traffic problems, the mood in Mollis is positive, with many business owners and employees looking forward to the event. The festival is seen as a platform to showcase the region’s tourism potential, with many visitors expected to discover the area’s attractions. Local businesses, such as bicycle dealers, food stores, and restaurants, are preparing for an influx of customers, with some expecting to work long shifts to meet the demand.
The festival will feature a range of activities, including wrestling competitions, live music, and traditional Alpine events. The organizers have planned extensively, with 8,000 volunteers working to make the event a success. The police are also taking measures to ensure public safety, with emergency services positioned to respond quickly in case of any incidents.
While some residents may experience disruptions to their daily routines, the overall sentiment is one of excitement and anticipation. As one local resident noted, “It’s only a weekend,” and the benefits to the local economy and tourism industry are expected to outweigh any temporary inconveniences. With its rich cultural heritage and stunning natural beauty, the Glarus region is ready to showcase its charm to a large and enthusiastic audience.
ESAF Small Finance Bank Announces Its Q1 2025 Earnings Report
ESAF Small Finance Bank has released its Q1 2025 financial results, providing an update on its performance during the first quarter of the fiscal year. The bank’s financial results are a key indicator of its progress and stability in the market.
The results show that ESAF Small Finance Bank has continued to grow and expand its operations, with an increase in its asset base and customer deposits. The bank’s total assets have grown significantly, driven by an increase in loans and advances. The bank’s loan portfolio has diversified, with a focus on retail and microfinance lending.
The bank’s net interest income has also increased, driven by a growth in its loan book and an improvement in its net interest margin. The bank’s non-interest income has also shown an increase, driven by a growth in fees and commissions.
ESAF Small Finance Bank has also made significant progress in improving its asset quality, with a reduction in its non-performing assets (NPAs). The bank’s NPA ratio has decreased, indicating a improvement in its credit quality.
The bank’s capital adequacy ratio has also improved, indicating a strong capital position. The bank’s return on assets (ROA) and return on equity (ROE) have also shown an improvement, indicating a strong financial performance.
The bank’s management has stated that they are focused on continuing to grow and expand the bank’s operations, while maintaining a strong focus on asset quality and risk management. The bank is also investing in digital technologies to improve its customer experience and operational efficiency.
Overall, ESAF Small Finance Bank’s Q1 2025 financial results indicate a strong performance, with growth in its asset base, loan book, and net interest income. The bank’s improvement in asset quality and capital adequacy ratio are also positive indicators of its financial health. The bank’s focus on digital transformation and customer experience is also expected to drive future growth and profitability.
It’s worth noting that the bank’s results are subject to various market and economic factors, and the bank’s future performance may be impacted by changes in the regulatory environment, competition, and other external factors. However, based on the Q1 2025 results, ESAF Small Finance Bank appears to be well-positioned for future growth and success. The bank’s strong financial performance and focus on asset quality and risk management are expected to drive long-term sustainability and profitability.
ESAF Small Finance Bank’s stock surges as board approves sale of Rs 735 crore non-performing assets to asset reconstruction company (ARC)
ESAF Small Finance Bank has taken a significant step to strengthen its asset quality and improve operational efficiency by selling a loan pool that includes non-performing assets (NPAs) and technically written-off loans. The loan pool has a total value of Rs 735.18 crore, comprising Rs 362.43 crore in NPAs and Rs 372.75 crore in technically written-off loans. The bank has already made a provision of 90.15% against this pool, which is expected to limit the impact on its profitability.
The bank’s board has authorized its Asset Sale Committee of Executives to oversee the transaction and complete all necessary formalities. This move is part of the bank’s efforts to improve its asset quality and reduce the burden of non-performing loans. By selling off these loans, the bank aims to free up resources and focus on its core business of providing financial services to its customers.
ESAF Small Finance Bank, which commenced its banking operations in March 2017, has a significant presence across the country with 787 banking outlets, 1106 customer service centers, and 693 ATMs spread across 26 states and 2 union territories. Despite its extensive network, the bank reported a standalone net loss of Rs 183.19 crore in the fourth quarter of FY25, compared to a net profit of Rs 43.35 crore in the corresponding quarter of the previous year. The bank’s total income also declined by 9.99% year-on-year to Rs 1,036.78 crore in Q4 FY25.
The sale of the loan pool is expected to help the bank improve its financial performance and reduce its losses. With a provision of 90.15% already made against the loan pool, the bank is well-equipped to manage the potential impact of the sale on its profitability. The move is also expected to improve the bank’s asset quality and operational efficiency, enabling it to focus on its core business and improve its overall performance.
Maruti Suzuki collaborates with ESAF Small Finance Bank to offer convenient financing options to retail customers
Maruti Suzuki India Limited (MSIL) has signed a Memorandum of Understanding (MoU) with ESAF Small Finance Bank to collaborate on offering retail financing solutions for new and used cars, as well as commercial vehicles. The partnership aims to provide easy and flexible finance options, particularly for first-time buyers, and make vehicle ownership more accessible and convenient for a wider segment of customers.
The MoU was signed by senior executives from both companies, including Partho Banerjee, Senior Executive Officer, Marketing & Sales, and Vishal Sharma, Vice President, Maruti Suzuki Finance & Driving School, representing Maruti Suzuki India Limited, and K. Paul Thomas, MD & CEO, and other senior officials from ESAF Small Finance Bank.
According to Partho Banerjee, the partnership reinforces Maruti Suzuki’s commitment to providing accessible financing solutions, particularly for first-time car buyers. The company aims to enhance financing options and flexible repayment solutions, making it easier for Indian families to own a Maruti Suzuki vehicle.
K. Paul Thomas, MD & CEO of ESAF Small Finance Bank, stated that the partnership aligns with the bank’s mission to empower lives and communities through finance. The collaboration will help extend affordable and convenient mobility solutions to a wider customer base, particularly in underpenetrated regions, promoting inclusive development and sustainable progress.
The partnership will leverage the combined network of Maruti Suzuki and ESAF Small Finance Bank across Tier 2 and Tier 3 cities, making vehicle ownership more accessible and convenient for customers in these regions. With this strategic alliance, Maruti Suzuki and ESAF Small Finance Bank aim to increase vehicle sales and promote financial inclusion in India.
Overall, the partnership between Maruti Suzuki and ESAF Small Finance Bank is expected to have a positive impact on the Indian automotive industry, making vehicle ownership more accessible and affordable for a wider segment of customers. The collaboration will help to drive growth and promote financial inclusion in the country, particularly in underpenetrated regions.
Maruti Suzuki ties up with ESAF Small Finance Bank to offer financing options for vehicle purchases
Maruti Suzuki India Ltd has announced a partnership with ESAF Small Finance Bank to provide retail financing solutions for new and used cars, as well as commercial vehicles. The partnership aims to offer easy and flexible finance options, particularly for first-time buyers, through a Memorandum of Understanding (MoU) signed between the two companies. The collaboration will leverage the combined network of Maruti Suzuki and ESAF Small Finance Bank across Tier II and Tier III cities, making vehicle ownership more accessible and convenient for a wider segment of customers.
According to Partho Banerjee, Senior Executive Officer, Marketing & Sales at Maruti Suzuki India, the partnership will enhance financing options and flexible repayment solutions for customers. The company is committed to making vehicle ownership more affordable and convenient for its customers, and this partnership is a step in that direction.
K Paul Thomas, MD & CEO of ESAF Small Finance Bank, highlighted the importance of the partnership in promoting inclusive development and sustainable progress for all. The collaboration will help extend affordable and convenient mobility solutions to a wider customer base, particularly in under-penetrated regions. The bank’s extensive network and Maruti Suzuki’s wide range of vehicles will make it easier for customers to own a vehicle, regardless of their location or financial background.
The partnership is expected to benefit customers in several ways, including easy and flexible financing options, competitive interest rates, and flexible repayment terms. Additionally, the collaboration will also enable Maruti Suzuki to expand its customer base and increase sales, while ESAF Small Finance Bank will be able to provide its customers with a wider range of financial products and services. Overall, the partnership between Maruti Suzuki and ESAF Small Finance Bank is a significant development in the Indian automotive industry, and is expected to have a positive impact on the market.
Kyndryl chosen by ESAF Small Finance Bank to drive its IT modernization and digital banking initiatives
Kyndryl, a leading provider of IT services, has partnered with ESAF Small Finance Bank, a new age bank in India with over nine million customers and 787 branches, to transform and manage its mission-critical technology infrastructure. The partnership aims to support ESAF Bank’s digital initiative, “StratoNeXt,” which seeks to modernize the bank’s technology and promote financial inclusion and economic development.
Through this partnership, Kyndryl will leverage its technology advisory services, Kyndryl Consult, and its innovative design-led co-creation approach, Kyndryl Vital, to build a modern and regulatory-compliant infrastructure for ESAF Bank. This will involve updating and migrating enterprise applications to a new environment, enabling greater agility, high-availability, and sustained innovation.
The partnership is expected to enhance ESAF Bank’s service delivery capabilities, allowing it to deliver a secure, seamless, and customer-centric digital banking experience. Kyndryl will also implement a comprehensive cybersecurity framework to strengthen the bank’s cybersecurity posture, facilitating the introduction of innovative security-rich banking solutions with minimal disruption to operations.
Kyndryl’s President in India, Lingraju Sawkar, emphasized the company’s deep expertise in technology and experience in managing mission-critical banking and financial services systems in India. He stated that Kyndryl is uniquely positioned to support ESAF Bank’s vision of promoting financial inclusion and economic development.
As part of the partnership, Kyndryl plans to establish a dedicated support and delivery center in Kochi, which will provide services for ESAF Bank and other customers. This expansion is expected to harness Kerala’s skilled technology workforce, reinforcing and deploying Kyndryl’s advanced delivery capabilities for its customers in South India and generating local employment opportunities.
ESAF Bank’s Executive Director, George K John, stated that the partnership with Kyndryl significantly advances the bank’s vision of delivering personalized, accessible, and engaging customer experiences to uplift communities. He emphasized the bank’s commitment to inclusive and responsible banking, leveraging technology to seamlessly blend digital innovation with meaningful physical interactions. The partnership is expected to empower not only ESAF Bank’s customers but also the broader communities it serves.
Embracing a future powered by Sustainable Aviation Fuels (SAF) and electric Sustainable Aviation Fuels (eSAF)
The global air travel industry is expected to experience significant growth, with passenger numbers projected to reach 22.2 billion by 2050, up from 9.1 billion in 2019. As a result, airlines are under pressure to reduce their carbon footprint and meet regulatory requirements, with many committing to net-zero emissions by 2050. To achieve this goal, the development and adoption of sustainable aviation fuel (SAF) is crucial. However, the current supply of SAF is still in its infancy, accounting for only 0.1% of all aviation fuel use.
The International Air Transport Association estimates that without urgent action, emissions from air travel could reach 21.2 metric gigatonnes per year. To mitigate this, the industry needs to accelerate the adoption of SAF. Despite growing investment and interest, the global SAF rollout is still in its early stages, with projects currently in development expected to meet only 2-4% of global jet fuel demand by 2030.
To bridge this gap, airlines must take swift action to secure SAF contracts and collaborate with technical and strategic experts, as well as project developers. New investment is needed to scale up SAF supply and ensure the industry meets its emissions targets. The window to achieve this is narrowing, and the industry must act now to avoid missing its goals. With the right investment and partnerships, the aviation industry can reduce its carbon footprint and play a key role in achieving global climate goals. However, without urgent action, the industry risks falling behind and failing to meet its commitments to reduce emissions and mitigate the impacts of climate change.
ESAF Small Finance Bank partners with IFFCO Tokio General Insurance to offer comprehensive financial protection for its customers.
ESAF Small Finance Bank (ESAF SFB) has partnered with IFFCO Tokio General Insurance to provide financial protection to its customers. Through this partnership, ESAF SFB customers will have access to a range of general insurance products and services. IFFCO Tokio General Insurance, a joint venture between Indian Farmers Fertilizer Co-operative (IFFCO) and Tokio Marine Group of Japan, has signed a Corporate Agency agreement with ESAF SFB.
This collaboration is expected to expand ESAF SFB’s financial services suite, providing customers with value-packed insurance benefits. The bank’s customers will have access to a variety of simple yet valuable general insurance products and services. The partnership aims to make ESAF SFB’s customers financially secured by providing exclusive insurance products at affordable rates.
Warendra Sinha, Managing Director and CEO of IFFCO Tokio General Insurance, expressed his delight at partnering with ESAF SFB, hoping to provide customers with affordable insurance products and support the bank’s efforts in making its customers financially secured.
K Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said that the collaboration with IFFCO Tokio General Insurance will help its customers make informed choices regarding insurance products. The customized insurance products offered by IFFCO Tokio General Insurance will cater to the general insurance needs of ESAF SFB’s customers, both existing and new.
The partnership between ESAF SFB and IFFCO Tokio General Insurance is expected to benefit customers by providing them with better insurance options and support. This partnership will enable ESAF SFB to further enhance its services, helping its customers navigate the complexities of insurance and make informed decisions about their financial security.
ESAF Bank is transforming its HR operations with AI-powered solutions to equip a future-ready workforce, poised to thrive in a rapidly changing business landscape.
With the rapid evolution of workplaces driven by AI, organizations that adapt to these changes are at an advantage. ESAF Small Finance Bank, ranked third in Fortune India’s Future-ready Workplaces study, is transforming its HR strategies to build a resilient, performance-driven, and innovation-led workforce. The bank’s MD & CEO, K. Paul Thomas, highlights its “digital-first approach” as a key factor in its success.
Thomas and Executive Vice President (HR) George Thomas emphasize the importance of creating a “future-ready organization” that prioritizes internal improvements, transparency, and employee engagement. To achieve this, the Thrissur-based bank has implemented various initiatives, including a digitalized recruitment system, online data migration, user access management, and resource allocation.
The bank is also committed to providing continuous technical and soft skills training for its 5,000-strong workforce. According to Thomas, this approach “ensures seamless hiring, particularly for tech-savvy young talent, while fostering a culture of continuous learning and upskilling.” The bank’s efforts to integrate AI-driven HR solutions, such as streamlining recruitment, enhancing performance management, and engaging employees efficiently, demonstrate its dedication to building a future-ready workforce.
The bank’s focus on leveraging AI and digital technology to drive its HR strategies reflects its commitment to adapting to the changing landscape of workplaces. By prioritizing innovation, performance, and employee engagement, ESAF Small Finance Bank is poised for continued success in a rapidly evolving business environment.
ESAF Small Finance Bank Faces Uphill Climb as Declining Performance Metrics Cast a Shadow of Concern – MarketsMojo
The ESAF Small Finance Bank (ESAB) is facing significant challenges amidst a decline in its performance metrics. As a small finance bank, ESAB focuses on providing financial services to underserved communities, particularly in rural and semi-urban areas.
The bank’s recent performance has been marred by a series of setbacks, including:
1. Declining Deposits: ESAB’s deposits have been declining steadily, with a significant drop in January 2023. This is a major concern, as deposits are a crucial source of funding for the bank.
2. Net Loss: The bank reported a net loss of ₹1.45 crore (approximately $190,000) in the third quarter of FY 2022-23, compared to a net profit of ₹1.15 crore (approximately $150,000) in the same quarter last year.
3. Non-Performing Assets (NPAs): The bank’s gross NPA (GNPA) and net NPA (NNPA) have increased significantly, with GNPA standing at 10.65% and NNPA at 5.45%. This highlights the bank’s inability to recover bad debts, which can impact its ability to raise capital and meet regulatory requirements.
4. Capital Adequacy Ratio: ESAB’s capital adequacy ratio has fallen below the required threshold, which could lead to penal action from the regulatory authority.
5. Weak Asset Quality: The bank’s asset quality is also a concern, with a significant portion of its loan book classified as stressed assets.
The bank’s challenges can be attributed to various factors, including:
1. Intense competition: ESAB operates in a highly competitive market, with several other small finance banks and traditional commercial banks vying for customers.
2. Limited reach: The bank’s geographical reach and branch network are limited, making it challenging to scale up operations and attract a larger customer base.
3. Regulatory changes: The bank is yet to fully adapt to the changes introduced by the Reserve Bank of India (RBI), which has been working to strengthen the banking sector.
4. Seasonal fluctuations: The bank’s performance is vulnerable to seasonal fluctuations, which can impact its revenue and profitability.
The decline in ESAB’s performance has raised concerns among investors and depositors, making it essential for the bank to address these challenges and improve its performance to regain confidence.
Explore the Top 7 Affordable Microfinance Banks in India
ESAF Small Finance Bank is a lending institution that provides microfinance solutions with competitive interest rates, specifically designed for small business owners and individuals in rural areas. The bank’s community-based lending model prioritizes women-led enterprises and self-help groups, recognizing the potential for economic empowerment through financial inclusion. ESAF’s loan offerings cater to a range of needs, including agriculture, small trade, and personal needs, with flexible repayment structures in place to ensure borrowers can manage their debt.
At ESAF, social impact is a key consideration, and the bank’s approach is guided by the goal of financial inclusion. By providing access to credit, ESAF aims to support low-income borrowers and help them build a better future. The bank’s focus on microfinance solutions with low interest rates enables borrowers to take control of their financial lives, invest in their businesses, and improve their overall well-being.
By targeting rural areas and underserved communities, ESAF addresses a significant gap in access to finance, which often hinders economic development and growth. The bank’s commitment to women-led enterprises and self-help groups also acknowledges the critical role that women play in driving economic progress and achieving financial stability.
ESAF’s approach is based on a collaborative and community-driven model, where borrowers and investors come together to drive sustainable economic development. By working closely with local communities, the bank builds strong relationships and fosters trust, ultimately leading to successful loan dispersals and repayment outcomes.
Overall, ESAF Small Finance Bank is a vital player in the microfinance sector, dedicated to promoting financial inclusion, social impact, and economic growth. Through its community-based lending model, the bank is empowering small business owners, individuals, and entrepreneurs in rural areas, giving them the tools and resources needed to build a better future. As a leader in rural finance, ESAF is committed to creating a more equitable financial landscape, where everyone has access to the resources they need to thrive.
CARE Ratings downgrades its outlook on ESAF Bank’s debt securities to negative, while reaffirms its previous rating assessment.
CARE Ratings has downgraded its outlook on ESAF Small Finance Bank’s various tier 2 bond instruments to “negative” from “stable” due to high asset quality stress. The rating agency has reassessed the bank’s profitability, noting that the bank has reported losses in the second and third quarters of FY25, and has a high gross non-performing assets (NPA) ratio of 6.96%. The bank’s gross stressed assets as a percentage of total advances rose to 7.03% as on December 31, 2024, from 4.84% as on March 31, 2024.
The rating agency has also noted that the bank’s pre-provision operating profit (PPOP) dropped to Rs 127 crore in the third quarter, a decline from Rs 143 crore in the second quarter and Rs 254 crore in the first quarter. CARE Ratings believes that the trend in PPOP will be a key rating monitorable going forward.
However, despite the losses, the bank’s capital adequacy stood at 22.7%, comfortably above regulatory requirements, with the tier-1 capital ratio being at 18.68%. The bank’s endeavour to expand its gold loan portfolio, which contributed to a reduction in risk-weighted assets, helped maintain robust capital adequacy.
To revert to a stable outlook, CARE Ratings requires ESAF Small Finance Bank to successfully raise substantial equity, which will help to mitigate the impact of the high asset quality stress. The bank will need to demonstrate improved performance and lower slippage in order to maintain a stable outlook. Overall, the downgrade in outlook reflects the challenges faced by the bank in managing its asset quality and profitability, and highlights the need for immediate attention and corrective measures to address these issues.
Experience high-yield savings: Earn up to 9% interest on your fixed deposits with top small finance banks!
Fixed deposits (FDs) are a popular investment option for those seeking reliable, long-term returns. Small finance banks in India are offering interest rates as high as 9% for certain tenures, making them an attractive option for conservative investors who prefer to minimize risk. Here are the latest FD rates offered by small finance banks:
Some banks, such as Unity Small Finance Bank, are offering FD rates above 9% for senior citizens, with a term of 1001 days and above. For general citizens, the highest rate is 8.6%. North East Small Finance Bank is offering 9% interest on FDs for 18 months to 36 months for both general and senior citizens. Utkarsh Small Finance Bank is offering 8.5% interest on FDs for 1,500 days or two to three years, while Suryoday Small Finance Bank is offering 8.6% interest for 5-year fixed deposits.
Other small finance banks, such as ESAF, Jana, Equitas, AU, and Ujjivan, are offering FD rates above 8%. These rates are applicable for various tenures, including 1 year, 1.5 years, 2 years, and 3 years. For example, Jana Small Finance Bank is offering 8.25% interest for 1-3 year fixed deposits, while Equitas Small Finance Bank is offering 8.25% interest for 888-day fixed deposits.
These rates are subject to change, so it’s essential for investors to check the current rates before investing. Fixed deposits are a great option for those who prefer a low-risk investment with predictable returns. With rates above 9% from some small finance banks, investors have a range of options to choose from, making it an attractive time to consider investing in fixed deposits.
7 Top-Notch Small Finance Banks Offering Attractive Fixed Deposit Interest Rates
The Reserve Bank of India (RBI) has established a special sector of the banking industry, known as small finance banks, which aims to promote financial inclusion for underserved segments of the economy. These banks are designed to provide access to banking services for micro and small businesses, small and marginal farmers, unorganized sector entities, and small business units that are not currently served by mainstream banks.
The RBI has licensed several small finance banks in India, which operate under the regulatory framework of the RBI. These banks offer a range of services, including deposit accounts, credit, and other financial products. One of the key features of small finance banks is their ability to offer fixed deposit (FD) accounts, which can help individuals and businesses earn interest on their deposits.
Here is a list of some of the small finance banks in India, along with their fixed deposit (FD) interest rates:
* Airtel Bank: 6.15% to 7.10% for 1-year FDs
* Au Small Finance Bank: 6.00% to 7.00% for 1-year FDs
* Equitas Small Finance Bank: 6.00% to 7.50% for 1-year FDs
* ESAF Small Finance Bank: 6.00% to 7.50% for 1-year FDs
* Janalakshmi Financial Services: 6.00% to 7.50% for 1-year FDs
* Suryoday Small Finance Bank: 6.00% to 7.50% for 1-year FDs
Please note that the interest rates may vary depending on the bank, deposit tenure, and other factors. It is always a good idea to check with the bank or their website for the most up-to-date information on their fixed deposit rates.
Overall, small finance banks have made significant progress in extending financial inclusion to underserved segments of the Indian economy. By providing access to banking services, such as fixed deposit accounts, these banks are helping to empower individuals and businesses to achieve their financial goals and improve their standard of living.
Small finance banks offer attractive returns on Fixed Deposits, with interest rates up to 9%!
The Reserve Bank of India’s recent 25 basis points cut in the repo rate has triggered a surge in interest rates offered by small finance banks (SFBs), making them attractive options for fixed deposit (FD) investors seeking higher returns. These SFBs, designed to promote financial inclusion, are now offering competitive rates, with some exceeding 9% for specific tenures. Here’s a breakdown of the top SFBs offering attractive FD rates:
* Unity Small Finance Bank: 9% for deposits with a tenure of 1001 days and 7.85% for one-year FDs
* NorthEast Small Finance Bank: 9% for deposits ranging from 18 months to 36 months and 7% for one-year FDs
* Suryoday Small Finance Bank: 8.6% for five-year deposits and 8.25% for one-year FDs
* Utkarsh Small Finance Bank: 8.5% for deposits of 2-3 years and 8% for one-year FDs
* ESAF Small Finance Bank: 8.38% for 888-day deposits, although their one-year option is lower at 6%
It’s essential to note that deposits in SFBs are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh, providing a safety net for depositors. However, experts advise caution when investing in these banks, which operate under different regulations than traditional commercial banks. To mitigate risks, investors are recommended to limit their deposits to the insurer’s coverage, ensuring the safety of their investments while still benefiting from the higher interest rates offered by these institutions.