Financial Performance Highlights

  • Profit After Tax (PAT): ₹80 crore for Q1 FY27, representing a sequential recovery and significant improvement from loss of ₹81 crore in Q1 FY26
  • Interest Income: Crossed ₹1,000 crore at ₹1,098 crore, showing 33% YoY growth
  • Pre-Provision Operating Profit (PPOP): ₹349 crore, up 179% YoY
  • Net Interest Margin (NIM): Improved to 7.9% in Q1 FY27 from 6.0% in Q1 FY26
  • Cost to Income Ratio: Improved to 58.1% from 78.2% YoY
  • Return Metrics: Q1 FY27 RoA at 1.0% and RoE at 17.5%

Business Growth Metrics

  • Total Business: Crossed ₹50,000 crore milestone
  • Gross Advances: ₹23,216 crore, showing 27% YoY growth and 4% QoQ growth
  • Deposits: ₹26,924 crore, showing 19% YoY growth and 4% QoQ growth
  • Credit to Deposit Ratio: 82.3%
  • CASA: ₹6,297 crore, up 12% YoY and 2% QoQ
  • CASA Ratio: 23.4%
  • Cost of Funds: 7.1% in Q1 FY27 compared to 7.4% in Q1 FY26

Asset Quality Indicators

  • Gross NPA (GNPA): 5.4% as of June 30, 2026 (improved from 7.5% as of June 30, 2025)
  • Net NPA (NNPA): 0.8% as of June 30, 2026 (improved from 3.8% as of June 30, 2025)
  • Provision Coverage Ratio: 85.5% as of June 30, 2026 (improved from 73.2% as of June 30, 2025)
  • Slippages: Q1 FY27 slippages lower by 84% compared to Q1 FY26 and 29% lower QoQ

Portfolio Composition

  • Secured Advances: ₹14,465 crore, showing 35% YoY growth and 6% QoQ growth
  • Secured Portfolio Contribution: Now constitutes 62% of total advances (up from 59% last year)
  • Unsecured Advances: ₹8,751 crore, showing 16% YoY growth and 0% QoQ growth
  • Strategic Portfolio MARG: Grew by 42% YoY and 8% QoQ
  • Emerging Household (EH) Portfolio: Grew 185% YoY, reflecting strategy of supporting graduating microfinance customers

Capital and Liquidity Position

  • Capital Adequacy Ratio (CRAR): 23.9%
  • Networth: ₹1,864 crore
  • Liquidity Coverage Ratio (LCR): 133.3% as of June 30, 2026

Management Commentary

Dr. K. Paul Thomas, Managing Director & CEO, stated that Q1 FY27 reflects steady progress of the Bank's transformation journey. The strategy focuses on building a diversified, secured and customer-centric portfolio across MSME, Agriculture, Retail, Gold Loans and Emerging Household segment while continuing financial inclusion. Investments in technology, digital capabilities, operational excellence and prudent risk management will support sustainable growth.

Company Background

ESAF Small Finance Bank Ltd is a scheduled commercial bank that commenced operations on March 10, 2017. The bank operates with a triple-bottom-line philosophy of People, Planet and Prosperity. It has 821 banking outlets, 721 ATMs, and 1,064 Customer Service Centres across 24 States and 2 Union Territories.