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ESAF Small Finance Bank registers Rs. 24 crore PAT

Published in Banking & Finance Wednesday, 21 November 2018 17:16



•Records Rs 24 crore PAT during the current half year as against Rs 49 cr loss  during the corresponding half year ended 30/09/2017

•Retail advances register 181% growth

•Gross deposits up by 192%



Spurred by an all-round performance, Kerala-based ESAF Small Finance Bank Ltd has registered Rs. 24 Cr in profit after tax (PAT) for the six months ending September 30, 2018, according to the unaudited results approved by the board.


Against a loss of Rs 48.99 crore during the H1 of FY18, the Thrissur-based Bank reported a profit after tax of Rs 24.06 crore, driven by a 70 per cent growth in gross advances at Rs 3993.45 crore, mostly riding on its retail portfolio which now remains its mainstay. 


Key Performance Highlights


ParticularsH1 FY 18 - 19

Rs. In Cr.H1 FY 17 - 18

Rs. In Cr.

Net Interest Income257.8391.72

Other Income60.6044.23

Profit after tax24.06(48.99)

Advances (Gross)3993.452344.51


GNPA Ratio3.37%6.85%



Capital Adequacy27.95%17.45%


Commenting on the results,  K Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said the results reflected the improving macro economic conditions, especially in the under-served sections of the society.


“The increase in profit was because of the significant improvement in asset quality. While our net NPAs came down to a 0.49 per cent from 4.99 percent, our gross NPAs  came down to 3.37 percent from 6.85 per cent as an YoY basis. This is commendable as the state of Kerala where we have significant exposure faced the worst floods in the century during the reporting period.

 “We have been on an expansion plan to increase the number of branches by 200 this fiscal year and tap the untapped market for which plans are well on track. Our concentrated efforts right from the branch level contributed to higher growth. During the last six months, the bank raised equity capital of Rs. 464.21 crore through the issuance of equity shares on preferential basis and the current level of capital funds on account of equity infusion can take care of the expected business growth for the medium term plan period. Building on the retail portfolio will be a thrust area going forward. CASA and micro RD (recurring deposit) will be new focus areas,” he said.



ESAF SFB, the only Kerala-based institution to get banking license since the Independence, has 422 banking outlets across 11 states with a client base of 2.5 million. The bank generated a total business of Rs 6,600 crore within 18 months of operations.  ESAF Small Finance Bank was incorporated on May 05, 2016 and started opertions on 10th March, 2017. The bank has solid presence in Kerala, Tamil Nadu, Karnataka, Maharashtra, Chattisgarh, Madhya Pradesh, Bihar, West Bengal, Pondicherry, New Delhi and Jharkhand. As part of the expansion, the bank is focusing on Uttar Pradesh, Odisha and North East states. 


Business Highlights


•Deposits Rs. 3,051.20 crore as on 30 September 2018, with a growth of 192.41% YoY. CASA deposits increased by 116.40% YoY to Rs. 296.06 crore. Term deposits registered a Y-o-Y growth of 203.88% to Rs. 2755.14 crore.


•Advances (Gross)- Rs. 3993.45 crore as on 30 September 2018, up by 70.33% YoY. While Micro loans (gross) increased by 68.41% YoY to Rs. 3880.55 crore. The retail advances (Gross) increased by 180.57% YoY to Rs.  112.90 crore.


•Total Income  - Rs. 533.14 crore as on 30 September 2018, netting a growth of  93.87 % YoY. Interest income increased by 104.76%   YoY the intrest income grew to Rs.  472.53 crore and other income increased  by 37.04%  YoY to Rs. 60.61 crore. Net interest income  grew faster by 181.11% to Rs. 257.83 crore


•Non Performing Assets -  Gross NPA Stood at 3.37% of total advances and Net NPA Stood at 0.49% as at 30 September 2018 against 6.85% and 3.37% respectively for 30th September, 2017.


•Capital Adequacy -  Capital Adequacy  Ratio of 27.95%  based on Basel II guidelines of which common equity tier 1 ratio stood at 21.71%. Additional Tier 1 Ratio – 1.30%. Tier -2 Capital Ratio – 4.94%.


•Network of Branches – Total of  297 Ultra Small Banking outlets,  125 retail banking outlets and 195 ATMs (including white label and brown label)  as on 30 September 2018. During the reporting period the Bank opened 21 retail banking outlets and 20 ATMs.


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Business Digest August September 2018

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