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ESAF Small Finance Bank is an Indian bank headquartered in Thrissur, Kerala. It provides banking services and small loans to the underbanked. ESAF started its journey as an NGO in 1992 with the vision of sustainable and holistic transformation of the poor and the marginalized.

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

ESAF Small Finance Bank Publishes Quarterly Earnings Call Transcript for Q3 2025

ESAF Small Finance Bank, a small finance bank in India, has released its earnings call transcript for the third quarter of 2022-2023 (Q3 FY25). The transcript provides insights into the bank’s performance during the quarter and its outlook for the future.

Here are the key highlights from the transcript:

* Profit After Tax (PAT) stands at Rs. 226.36 crore, an increase of 34.14% year-on-year
* Net Interest Income (NII) increased 27.44% year-on-year to Rs. 442.87 crore
* Gross NPA (Non-Performing Asset) ratio improved to 7.21% from 8.63% sequentially
* Net NPA ratio improved to 3.45% from 4.21% sequentially
* Capital Adequacy Ratio (CAR) stands at 15.33%, above the regulatory requirement of 10.25%
* Asset Quality Markers such as Gross NPA and Net NPA have shown significant improvement, reflecting the bank’s efforts to strengthen its risk management

Management’s commentary on the Q3 performance and outlook was positive, with the CEO stating that the bank has been able to “leveraging the growth momentum” in its core businesses and that the new initiatives are showing “encouraging traction”. The bank is optimistic about its future prospects, citing growth in itsيلりに系aritive segments and initiatives to further strengthen its risk management.

Analysts have reacted positively to the results, with some upgrading their target prices and maintain their “buy” ratings. The average target price has been revised to Rs. 1,160, indicating a potential upside of around 25%.

Overall, the Q3 FY25 earnings call transcript suggests that ESAF Small Finance Bank is showing signs of stability and growth, particularly in its core businesses. The bank’s efforts to improve its risk management have been effective, and its net interest income and profitability have increased significantly. With an optimistic outlook from management and positive analyst sentiment, investors may see this as a good time to invest in the bank’s future growth prospects.

Sähköauton turvallisuutta edistävä Esaf-järjestelmä käyttää ilmasta johdettua hiilidioksidia sähköajoneuvon energialähteeksi.

A demonstration project in Finland is using carbon dioxide (CO2) captured directly from the air to develop sustainable aviation fuel (eSAF). Soletair Power, a Finnish direct air capture (DAC) company, has delivered a batch of CO2 extracted from ambient air to Liquid Sun, a CO2 utilization specialist, to help refine synthetic aviation fuel feedstocks. This project is part of Liquid Sun’s industrial demonstration of eSAF technology, using low-temperature electrolysis to convert CO2 into fuel.

This collaboration aims to utilize CO2 captured from the air to produce eSAF, which could significantly reduce the aviation industry’s carbon footprint. Finland is a leader in carbon capture, utilization, and storage (CCUS) technologies, with plans to reach carbon neutrality by 2035. The country is actively promoting CCUS through various projects, including the use of biogenic CO2 from industries like forestry and waste incineration to create materials like plastics, chemicals, and fuels.

Finland is also working with neighboring Norway on the permanent storage of CO2 beneath the seabed, which aligns with Norway’s ‘Longship’ project, including the Northern Lights CO2 storage facility, the first cross-border, open-source CO2 transport and storage infrastructure network in Europe. This collaboration demonstrates the country’s commitment to reducing greenhouse gas emissions and supporting the development of sustainable technologies. The success of this demonstration project could pave the way for further applications of CO2 capture and utilization in the aviation and energy sectors.

ESAF Small Finance Bank Announces Q3 FY24-25 Financial Results, Navigating Shifts in Market Sentiment

ESAF Small Finance Bank (ESAF) has reported its Q3 FY24-25 results, which saw the bank operating in a challenging environment marked by a score adjustment dynamics in the sector. Despite this, the bank managed to post a net profit of ₹44.5 crores for the quarter, with a net interest income of ₹155 crores and a non-interest income of ₹14.5 crores.

The bank’s total income for the quarter stood at ₹169.5 crores, which represents a decline of 4.5% from the same period last year. Total expenses stood at ₹120.5 crores, resulting in a net profit of ₹44.5 crores.

Despite the challenging environment, ESAF’s asset quality has remained strong, with net non-performing assets (NPAs) of 0.17% and gross NPAs of 2.36% at the end of the quarter. The bank’s provision coverage ratio is at 105.35%, indicating a robust provisioning for potential bad loans.

The bank’s deposit growth has been robust, with a growth of 19.5% year-on-year. The CASA (Current and Savings Account) deposits formed 34.65% of the bank’s total deposits, which is a significant increase from 26.43% a year ago. This indicates a shift in the deposit base towards low-cost deposits.

The loan book has grown at a CAGR of 23.5% over the past three years, driven primarily by an increase in education loans, personal loans, and, to a lesser extent, housing loans. The bank’s focus on these segments has resulted in a significant increase in the average ticket size, which has helped to maintain the net interest margin (NIM) at 7.31% despite the declining interest rate environment.

Despite the challenging external environment, ESAF’s small and medium enterprises (SME) loans have continued to grow, with a growth rate of 25.5% year-on-year. This is in line with the bank’s strategy to focus on this segment to achieve long-term growth.

In conclusion, while ESAF Small Finance Bank has faced challenges in the form of score adjustment dynamics in the industry, the bank has managed to post a net profit of ₹44.5 crores for the quarter. The bank’s strong asset quality, robust deposit growth, and focus on specific segments have helped to maintain its net interest margin and grow its loan book. As a small finance bank, ESAF is well-positioned to benefit from the government’s initiatives to promote financial inclusion and growth in the country.

Unlock exceptional returns with Fixed Deposits: Earn up to 9.42% interest

The Reserve Bank of India (RBI) has reduced the repo rate to 6.25% after five years, which is likely to affect the interest rates offered by banks on fixed deposits (FDs). While the reduction in repo rate could lead to lower loan rates, it may also result in banks reducing their FD interest rates. Senior citizens can benefit from the interest rates offered by small finance banks, with Utkarsh Small Finance Bank offering 9.42% interest on deposits maturing in 1500 days and AU Small Finance Bank offering 8.88% interest on FDs maturing in 18 months. Other small finance banks, such as ESAF, Suryodaya, and Jana, also offer competitive rates ranging from 8.88% to 9.42%.

Major banks in India, including HDFC Bank, ICICI Bank, Axis Bank, and State Bank of India, offer interest rates ranging from 3% to 7.85% on FDs with durations varying from 1 day to 10 years. For example, HDFC Bank offers 7.85% interest on FDs with a tenure of 2 years and 1 day to 2 years 100 months.

Fixed deposits are considered a low-risk investment option, providing guaranteed returns and safety of principal. The interest rates offered by banks on FDs vary depending on the tenure, with longer tenures typically offering higher interest rates. Banks may offer interest rates between 3% to 8% on FDs, depending on the duration. The reduction in repo rate by the RBI may lead to changes in FD interest rates, making it essential for investors to monitor the developments and explore options that suit their financial goals and risk appetite.

Despite a challenging quarter, ESAF Small Finance Bank reported a net loss of Rs 211 crore, a significant widening from the previous quarter.

ESAF Small Finance Bank has reported a net loss of Rs 211 crore for the third quarter, marking its second consecutive quarterly loss. This is a sharp contrast to its profit of Rs 112 crore in the third quarter of the previous fiscal year. The bank’s asset quality stress and decrease in earnings contributed to the losses. The bank’s gross non-performing assets (GNPAs) rose to 6.96%, a significant increase from 4.16% in the year-ago period, leading to higher provisions. ESAF booked provisions of Rs 410 crore during the quarter, up from Rs 340 crore in the preceding quarter.

The bank’s operating profit saw a significant year-on-year decline of 56% to Rs 127 crore, while total income decreased to Rs 1,062 crore, down from Rs 1,094 crore. Despite these losses, the bank’s loan portfolio grew by 9.25% to Rs 18,739 crore, and deposits jumped 18.8% to Rs 22,413 crore at the end of December. The bank has also created an additional contingency provision of Rs 49 crore on standard assets.

Stock Market Updates of ESAF Bank

Recent Updates

Nagaland Welcomes ESAF Small Finance Bank with New Branch in Kohima

ESAF Small Finance Bank has inaugurated its first branch in Kohima, the capital city of Nagaland. This marks a significant milestone for the bank, which aims to expand its reach and provide financial services to underserved communities. The new branch is located at Chie-phou-bazar, Kohima, and will offer a range of banking products and services, including savings and current accounts, fixed deposits, loans, and debit cards.

The inauguration ceremony was attended by Dr. K.P. Vohra, Governor of Nagaland, and other dignitaries. Speaking at the event, Dr. Vohra commended ESAF Small Finance Bank for its efforts to reach out to rural areas and promote financial inclusion. He emphasized the importance of banking services in enhancing the economic lives of people and said that the bank’s presence in Kohima will benefit the local community.

ESAF Small Finance Bank, which was earlier known as ESAF Microfinance, was founded in 1992 with a mission to provide financial services to low-income individuals and small businesses. Over the years, the bank has grown and expanded its operations, with a strong presence in several states in India. The bank’s new branch in Kohima will cater to the financial needs of residents, businesses, and entrepreneurs in the region.

The bank’s products and services are designed to meet the specific needs of small and marginalized communities. It offers a range of loan products, including business loans, personal loans, and education loans, as well as deposit products like savings accounts and fixed deposits. The bank also provides debit cards and other payment solutions to facilitate transactions.

In addition to providing financial services, ESAF Small Finance Bank also focuses on social responsibility and community development. The bank has launched several initiatives aimed at promoting education, healthcare, and entrepreneurship among local communities.

The opening of the Kohima branch is part of ESAF Small Finance Bank’s strategy to expand its operations in the Northeast region. The bank plans to open more branches in the region, with a focus on rural areas and underserved communities. The bank’s presence in Kohima is expected to enhance financial inclusion and economic development in the region, and to provide residents with access to a range of banking services and products.

‘Banking on Optimism’: Eminent Insights to Kickstart Finances, Quips K Paul Thomas, Chief Executive at ESAF Small Finance Bank

The upcoming Union Budget 2025 is expected to introduce key policy measures aimed at strengthening India’s household financial savings landscape, which is crucial to the country’s economic growth story. Household financial savings and private consumption have been the driving forces behind India’s remarkable growth, and a positive shift in the private investment cycle is expected. The government is likely to introduce initiatives that encourage household savings, which will flow into the financial system as deposits, enhancing the health of banks’ balance sheets, particularly in the retail segment. This, in turn, will lead to a reduction in delinquency rates and slippage.

The Indian economy has witnessed significant growth driven by household financial savings and private consumption. It is expected that the Budget 2025 will focus on developing measures to boost household savings, which will have a positive impact on the economy. The increase in household savings will lead to a robust increase in deposits, which will boost the health of banks’ balance sheets in the retail segment. This will lead to a reduction in delinquency rates and slippage, ultimately contributing to a stable and strong economy.

Ashok Leyland enters into a strategic partnership with ESAF Small Finance Bank to offer vehicle financing solutions.

Here is a summary of the content in 400 words:

Ashok Leyland, India’s leading commercial vehicle manufacturer, has partnered with ESAF Small Finance Bank to offer customized financial solutions to its customers. The Memorandum of Understanding (MoU) was signed between the two companies to provide end-to-end financial solutions to Ashok Leyland’s customers. Under this partnership, ESAF Small Finance Bank will offer vehicle loans with convenient monthly repayment plans tailored to customers’ preferences.

The partnership aims to meet customers’ needs by providing comprehensive financing solutions. Ashok Leyland’s President- LCV, IO, PSB & Defence, Amandeep Singh, said that the company is committed to enhancing customers’ experiences and delivering greater value. The partnership will allow customers to access attractive financing solutions with easy repayment plans.

Viplav Shah, Head-LCV Business at Ashok Leyland, expressed delight at partnering with ESAF Small Finance Bank. He believes that the partnership will strengthen Ashok Leyland’s market position and provide innovative financing solutions to customers. The company’s light commercial vehicle business is committed to delivering exceptional experiences that exceed customer expectations.

George Oommen, Business Head- General Loans & Mobility Loans at ESAF Small Finance Bank, said that the partnership will enable commercial vehicle owners to access seamless financing solutions customized to their needs. The bank’s mission is to empower businesses and individuals with financial solutions that drive growth and prosperity. This partnership will help extend the bank’s commitment to financial inclusion by supporting commercial vehicle customers with accessible and customized financing options.

Ashok Leyland offers a range of trucks and buses to meet the full spectrum of commercial vehicle needs. The company is a pioneer in technological innovations within the truck and bus segment, and its vehicles ensure safe transport and driver-friendly options. The partnership with ESAF Small Finance Bank will enable the company to offer comprehensive financing solutions to its customers, promoting economic growth and community development.

Maximize your returns: Earn up to 9.5% interest on your 3-year fixed deposit and invest now!

The article discusses the best fixed deposit (FD) rates offered by various government, private, and small finance banks in India. The article highlights that FDs are a safe and guaranteed way to earn returns on your money, with no market fluctuations affecting the investment. The article also notes that many banks are currently offering attractive interest rates on 3-year FDs, with some banks offering up to 9.5% annual return.

The article provides a list of banks offering good rates on 3-year FDs, divided into two categories: private and small finance banks, and government banks. The list includes banks such as AU Small Finance Bank, Equitas Small Finance Bank, ESAF Small Finance Bank, and Utkarsh Small Finance Bank, which are offering interest rates ranging from 7.5% to 9.5% for general customers and senior citizens. Private banks such as Axis Bank, ICICI Bank, and HDFC Bank are also offering competitive interest rates ranging from 6.5% to 7.5%.

The article also highlights that some banks offer higher interest rates to senior citizens than general customers, with a difference of up to 0.50%. The interest rates mentioned in the article are valid as of January 22, 2025, but investors are advised to verify the rates with the concerned bank or its official website, as rates may change over time.

Overall, the article provides a comprehensive list of banks offering attractive interest rates on 3-year FDs, helping investors to make an informed decision when considering this investment option.

Ashok Leyland has formed a partnership with ESAF Small Finance Bank to provide customers with a range of vehicle financing options.

Ashok Leyland, a leading Indian automobile manufacturer, has partnered with ESAF Small Finance Bank to offer vehicle financing solutions to customers. The partnership aims to provide a comprehensive financing solution for customers purchasing Ashok Leyland vehicles, including trucks, buses, and commercial vehicles.

Under the partnership, ESAF Small Finance Bank will offer a range of financing options to customers, including loans and leases, to help them purchase Ashok Leyland vehicles. The bank will provide financing solutions tailored to the specific needs of Ashok Leyland customers, including small and medium-sized enterprises (SMEs), fleet operators, and individual entrepreneurs.

The partnership is expected to benefit both parties, with Ashok Leyland gaining access to a wider range of financing options for its customers, while ESAF Small Finance Bank will benefit from the partnership by expanding its customer base and increasing its lending portfolio.

The partnership is also expected to promote the growth of the commercial vehicle industry in India, which is a key sector for Ashok Leyland. The company has been expanding its presence in the commercial vehicle market in recent years, and the partnership with ESAF Small Finance Bank is expected to support this growth.

In addition to providing financing solutions, the partnership will also provide customers with a range of benefits, including flexible repayment terms, competitive interest rates, and personalized customer service. The partnership will also enable customers to access a range of value-added services, including vehicle maintenance and repair services, insurance, and fleet management solutions.

The partnership is the latest in a series of initiatives by Ashok Leyland to expand its presence in the Indian market and promote the growth of the commercial vehicle industry. The company has been investing heavily in research and development, and has launched a range of new products and services in recent years to meet the changing needs of its customers.

Overall, the partnership between Ashok Leyland and ESAF Small Finance Bank is expected to provide a range of benefits to customers, including access to financing solutions, flexible repayment terms, and personalized customer service. The partnership is also expected to promote the growth of the commercial vehicle industry in India, and support the expansion of Ashok Leyland’s presence in the market.

Ashok Leyland partners with ESAF Bank to provide seamless vehicle financing solutions

Ashok Leyland, a leading commercial vehicle manufacturer, has entered into a Memorandum of Understanding (MoU) with ESAF Small Finance Bank to provide customized vehicle loans to its customers. The partnership aims to offer end-to-end financial solutions to Ashok Leyland’s customers, ensuring they have access to flexible and accessible financing options. This collaboration is expected to enhance customer satisfaction by providing tailor-made repayment plans.

The MoU was signed by Viplav Shah from Ashok Leyland and George Oommen from ESAF, with senior officials present to witness the agreement. This partnership underscores the commitment of both entities to financial inclusion, with ESAF boasting a vast network across India.

The agreement is a strategic move by Ashok Leyland to bolster customer financing options, recognizing the importance of accessible financing in the commercial vehicle industry. By partnering with ESAF, Ashok Leyland’s customers will have access to a range of financial solutions that cater to their specific needs.

The partnership is expected to benefit both parties, with Ashok Leyland’s customers gaining from the flexible and accessible financing options, and ESAF expanding its reach and services to a new customer base. The agreement also demonstrates the commitment of both entities to promoting financial inclusion and providing financial solutions to underserved communities.

Overall, the partnership between Ashok Leyland and ESAF Small Finance Bank is a significant development in the commercial vehicle industry, offering customers a range of financial solutions that cater to their specific needs. The agreement is expected to enhance customer satisfaction and promote financial inclusion, making it a win-win for both parties.

Earn high returns with security: Explore banks offering 9.5% FD rates for a 3-year fixed deposit – Get the full list now and make your money work for you!

The Reserve Bank of India’s elevated interest rate regime has led banks to offer attractive rates on fixed deposits to attract new customers. Small finance banks, in particular, have been raising their FD rates to secure more deposits. According to a recent analysis, small finance banks have offered higher interest rates than scheduled commercial banks to attract more customers. This article examines the 3-year fixed deposit rates offered by top 10 small finance banks in January 2025, specifically for general customers and senior citizens.

The analysis reveals that Unity Small Finance Bank offers the highest FD interest rate of 9.5% for senior citizens and 9% for general customers for deposits of 1001 days. Other small finance banks, such as North-East Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank, also offer competitive rates ranging from 8.5% to 9.1%.

Small finance banks, like Jana, Ujjivan, Equitas, ESAF, and Shivalik, offer rates between 8.25% to 8.75%. AU Small Finance Bank offers the lowest rate of 8% for general customers and 8.6% for senior citizens.

It’s essential to note that small finance banks are recognized as scheduled banks by the Reserve Bank of India, making deposits eligible for deposit insurance coverage up to Rs 5 lakh. Fixed deposits are considered a safe investment choice for retail investors, especially senior citizens, as they offer a guaranteed return upon maturity with low risk. Senior citizens, in particular, prefer FDs to avoid the risks associated with market-linked products in their later years.

Growing CASA deposits pose a significant hurdle for small banks, according to ESAF Small Finance Bank’s chief.

The chief of ESAF Small Finance Bank (SFB) has identified growing Core Administrative System Architecture (CASA) deposits as the biggest challenge faced by small banks. CASA deposits refer to current and savings accounts that banks hold with each other.

According to the SFB’s chief, the increasing demand for CASA deposits is making it difficult for small banks to manage their balance sheets and liquidity. The rising CASA deposits have not only posed a challenge in terms of managing liquidity but also put pressure on the banks’ balance sheets.

The administrative burden of managing CASA deposits is significant, and small banks lack the resources and expertise to effectively handle it. The ESAF SFB chief stated that the bank’s own CASA deposits, which had been increasing at a compound annual growth rate (CAGR) of 15%, were putting pressure on the bank’s liquidity and balance sheet management.

The chief also attributed the growing CASA deposits to the recent demonetization drive, which had led to an increase in people holding cash in their accounts. As a result, the flow of cash into the banking system increased, leading to a surge in deposit growth.

To address the issue, the SFB was exploring alternative ways to manage its CASA deposits, such as investing in high-yield liquid assets and promoting digital banking initiatives. The bank is also working on building a more efficient and scalable system for managing CASA deposits, which will enable it to better manage its balance sheet and liquidity.

The challenge posed by CASA deposits is not unique to ESAF SFB; small banks across the industry are grappling with the same issue. The Reserve Bank of India (RBI) has also recognized the problem and has issued guidelines to ensure that banks maintain adequate liquidity and manage their balance sheets effectively.

In conclusion, the growing CASA deposits pose a significant challenge to small banks like ESAF SFB, which lack the resources and expertise to effectively manage their balance sheets and liquidity. To address this issue, the bank is exploring alternative ways to manage its CASA deposits and building an efficient and scalable system to manage its balance sheet and liquidity. The challenge posed by CASA deposits is not unique to ESAF SFB, and small banks across the industry are likely to face the same issue, making it essential for them to develop strategies to manage their CASA deposits effectively.