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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

ESAF Small Finance Bank Ltd.'s total deposits rose 33.4% to Rs 20,887 crore in the first quarter of fiscal 2025, according to provisional figures released by the bank. The bank's gross advances rose 30.04% on a yearly basis to Rs 18,783 crore during the quarter, compared to Rs 14,444 lakh crore in the same period last year. The Current Account Savings ratio—the proportion of deposits that come from low-cost current and savings accounts—rose to 23.59% from 18.22% in the year ago period. A higher CASA ratio indicates a lower cost of funds, since lenders don't usually give any interest on current account deposits and the interest on saving accounts is low.

ESAF Small Finance Bank's Q1 Total Deposits Jump Over 30%

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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₹0

*All Interest Payments will be subject to TDS (Not Applicable on Government Securities and Tax Free Bonds)

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A Stable

CARE

Subordinated Tier 2

Unsecured

ISSUER

ESAF Small Finance Bank Limited

Recent News

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

ESAF Small Finance Bank's Q1 Total Deposits Jump Over 30%

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₹100.5

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as on Sep 11, 2024

as on Sep 12, 2024

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