ESAF Small Finance Bank net profit grows by 41.09%

KOCHI, India, Nov. 17, 2020 /PRNewswire/ -- ESAF Small Finance Bank Limited, one of the leading small finance banks in India in terms of yield on advances, AUM growth rate and share of retail deposits (Source: CRISIL Research Report), has posted a 41.09% jump in net profit to Rs 130.42 cr for the half-year ended 30 September 2020, as against Rs.92.44. crore posted in the same period last year.

Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said, "The bank has performed well during the period and I believe the results show that the micro-entrepreneurs are in a recovery mode after the COVID-19 pandemic induced slow down, indicating a positive sign for the economy altogether."

The total business during the period increased by 35.06% to Rs.15,582 cr. The deposits increased by 35.38% to Rs 8208 cr and advances increased by 34.70% to Rs 7374 cr. Gross NPAs as a percentage of gross advances decreased from 1.76% as at 30 September 2019  to 1.32% as at 30 September 2020 and net NPAs as a percentage of net advances reduced from 0.62% as at 30 September 2019 to 0.19% as at 30 September 2020. The provision coverage ratio improved to 93.45% as at 30 September 2020 from 81.53% as at 30 September 2019. The CRAR was 24.29% with Tier I CRAR of 21.10% as at 30 September 2020, as against a regulatory requirement of 15% and 7.50%, respectively.

On the impact of COVID-19, K. Paul Thomas said, "The bank's customers have shown immense resilience in the face of adversity. I believe the bank has taken suitable steps and sufficient safeguards to support the customers to tide over the crisis and bring them back to normalcy." He also expressed his gratitude for the hard work and commitment of the employees in the face of the pandemic.

The bank opened 29 branches during the half-year ended 30 September 2020, giving it a total of 483 branches across 19 states and two Union Territories.

About ESAF Small Finance Bank

We are one of the leading small finance banks in terms of yield on advances, AUM growth rate and share of retail deposits. (Source: CRISIL Research Report). Along with our Promoters, we have a history of more than 25 years of primarily serving the unserved and underserved, with a focus on financial inclusion. Our business model focuses on the principles of responsible banking, providing customer-centric products and services through the extensive application of technology

We follow a social business strategy with a triple bottom line approach, emphasising people, the planet and prosperity. Our goal is to become one of India's leading banks in the microfinance sector that offers equal opportunities through universal financial access and inclusion and livelihood and economic development. Our goal is to become one of India's leading banks in the microfinance sector that offers equal opportunities through universal financial access and inclusion and livelihood and economic development. We can trace our roots back to 1992, when Kadambelil Paul Thomas, our Managing Director and Chief Executive Officer, along with others, founded ESAF Society, a society focused on the development of microenterprises, community development, and community health development. ESAF Society started its microfinance activities in 1995. In 2006, Kadambelil Paul Thomas along with others acquired our Corporate Promoter. Thereafter, ESAF Society transferred its microfinance business undertaking to our Corporate Promoter in 2008 pursuant to a business transfer agreement dated March 31, 2008. Our Corporate Promoter was awarded NBFC-MFI status in 2014. Our Corporate Promoter transferred its business undertaking, comprising its lending and financing business, to our Bank on March 10, 2017 pursuant to a Business Transfer Agreement dated February 22, 2017. We commenced our business as a small finance bank on March 10, 2017.

For more information, visit https://www.esafbank.com/

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