ESAF Small Finance Bank’s Total Business Grew 12.3% YoY in Q3 FY 2025

ESAF Small Finance Bank Limited has announced its financial results for the third quarter and nine months of FY 2025.

Q3 FY 2025 Financial Performance

The bank reported a Net Interest Income (NII) of ₹487 crore, with a Net Interest Margin (NIM) of 8.64%. Despite these positive metrics, the bank recorded a loss of ₹211 crore in Q3 FY25 due to higher provisioning for stressed assets.

However, the bank reported a loss of ₹211 crore in Q3 FY25 compared to a loss of ₹190 crore in the previous quarter.

Other Key Highlights

Secured loan disbursements surged by 172% YoY, reaching ₹4,226 crore in the nine months of FY25, compared to ₹1,554 crore in the same period last year. This has boosted the secured asset portfolio, which now accounts for 43.35% of the loan book, up from 27.91% in NM FY24. Gold loans also demonstrated growth, increasing by 82% YoY to ₹4,576 crore in the nine months of FY25.

CASA deposits rose by 57% YoY to ₹5,592 crore in Q3 FY25, up from ₹3,562 crore in Q3 FY24, improving the CASA ratio to 24.95% from 18.89%. ESAF added 8.18 lakh new customers during the nine months of FY25, bringing its total customer base to 91.9 lakh.

To strengthen its balance sheet, ESAF allocated ₹410 crore towards provisions for stressed assets, increasing the PCR to 78.58% in December 2024, up from 73.70% in September 2024. The Gross NPA ratio stood at 6.96%, while the Net NPA ratio slightly improved to 2.97% from 2.98% in the previous quarter.

The total business of the bank expanded by 12.3% YoY to ₹41,576 crore. Gross advances increased by 6.6% YoY to ₹18,291 crore, while the total loan book grew by 5.6% YoY to ₹19,161 crore. Deposits saw a notable 18.9% YoY increase, reaching ₹22,415 crore in Q3 FY25 compared to ₹18,860 crore in Q3 FY24.

The bank maintained a Capital to Risk-Weighted Assets Ratio (CRAR) of 22.70%, including Tier I capital at 18.68%.

Commenting about the results, the MD and CEO of ESAF Small Finance Bank, K. Paul Thomas, said, “We have registered strong growth in total business and witnessed a significant rise in CASA deposits. 92% of our deposits are retail, reflecting our financial stability. We remain

confident in improving asset quality over the next one to two quarters, driven by our commitment to responsible lending and diversification to mitigate concentration risks. Additionally, our focus on technological advancements will enhance operational efficiency and elevate customer experience.”

On February 11, 2025, ESAF Small Finance Bank share price (NSE: ESAFSFB) opened at ₹33.56, touching the day’s low at ₹32.82, as of 10:23 AM on the NSE.

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