CARE

Thrissur-based ESAF Small Finance Bank Ltd said its board of directors has announced plans to raise funds up to ₹135 crore through the issue of bonds on a private placement basis.The bank's board has approved the proposal to issue listed, rated, taxable, unsecured, transferable, redeemable, fully paid-up, Basel II Compliant Lower Tier II subordinated bonds. These bonds will be in the form of non-convertible debentures (NCDs) and will be issued on a private placement basis, according to a stock exchange filing.

ESAF Small Finance Bank to raise ₹135 crore via bonds on private placement basis

ESAF Small Finance Bank Limited has reported a robust growth in its net profit at ₹112 crore, which surged by 200 per cent in Q3 of FY24. The net interest income grew 32 per cent to ₹597 crore. The pre-provisioning operating profit increased 20 per cent to ₹288 crore in Q3 FY24. The return on asset (ROA) and return on equity (ROE) stood at 2.3 and 25.5 per cent respectively.

ESAF Small Finance Bank posts 200% surge in Q3 net profit

The asset quality parameters of the bank improved with GNPA and NNPA at 2.49% and 1.13% as on March 31, 2023 as against 7.83% and 3.92%, respectively, as on March 31, 2022. The improvement in asset quality levels is on account of increased write-offs and sale of NPA to ARC.

ESAF AUM continues to remain concentrated in Kerala at 42% as on March 31, 2023. The top three states constitute 73% of overall portfolio as on March 31, 2023. 

The issuer has made timely interest payments

Mr. Kadambelil Paul Thomas, MD & CEO

Mr. K Paul Thomas has over 34 years of industry experience, of which more than 25 years are in the microfinance sector. He is supported by well-qualified and experienced management team having rich experience in the banking and financial services sector.

With moderate growth of 16% in advances and supported by internal accruals, the total CAR and Tier-I CAR improved to 19.83% and 18.12%, respectively, as on March 31, 2023, as against 18.64% and 16.16%, respectively, as on March 31, 2022.

In the last two years ending March 31, 2022, bank’s profitability was impacted due to COVID-19-induced pandemic, with higher credit cost, and lower yields; however, with recovery in the economy the profitability witnessed improvement in FY23.

11.00%ESAF Small Finance Bank Limited 20 Apr 2030

ISIN:

INE818W08123

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A Stable

CARE

Subordinated Tier 2

Unsecured

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ESAF Small Finance Bank Limited

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ESAF Small Finance Bank to raise ₹135 crore via bonds on private placement basis

ESAF Small Finance Bank posts 200% surge in Q3 net profit

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₹100.5

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11.1594%

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as on Jul 29, 2024

as on Jul 30, 2024

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