The shares of prominent small finance banks gained up to 11 percent in today’s trading session after the board approved the sale of non-performing assets (NPAs) and technically written-off loans worth Rs 735.18 crore.
With a market capitalization of Rs 1,613.29 crore, the shares of ESAF Small Finance Bank Ltd are trading at Rs 31.30 per share, increasing around 2.96 percent as compared to the previous closing price of Rs 30.40 apiece.
The shares of ESAF Small Finance Bank Ltd have seen positive movement after its board approved the sale of NPAs and technically written-off loans worth Rs. 735.18 crore to an asset reconstruction company.
The loan pool comprises Rs. 362.43 crore in NPAs and ₹372.75 crore in technically written-off accounts. Notably, the bank has already made provisions for 90.15% of this loan pool, indicating prudent risk management and aiming to clean up its balance sheet, which likely boosted investor confidence.
Earlier this week, Maruti Suzuki partnered with ESAF Small Finance Bank to offer flexible retail financing for new, used, and commercial vehicles, targeting first-time buyers in tier-II and III cities.
Looking forward to the company’s financial performance, revenue decreased by 11 percent from Rs 1,002 crore in Q4FY24 to Rs 893 crore in Q4FY25. Further, during the same time frame, net profit turned into a loss from a profit of Rs 43 crore to a loss of Rs 183 crore.
ESAF Small Finance Bank operates across 24 states and 2 UTs with 7,726 touchpoints. It has a ₹19,643 crore loan book, balanced between micro and retail loans. FY25 saw flat loan growth, 17.2% deposit growth, and 18.3% yield. CASA ratio is 24.8%.
ESAF Small Finance Bank is a financial institution that focuses on serving unbanked and under-banked customers, particularly in rural and semi-urban areas. Their core offerings consist of two categories: advances (assets) and deposits (liabilities).
Written by Abhishek Singh
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