Chennai: Kerala based social bank, ESAF Small Finance Bank has recorded a 110.86 %, increase in its net profit for the year ended March 31,2020. The net profit for the Financial Year increased to 190.39 crore from Rs 90.29 crore registered in the year before.
Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said “the encouraging results showed the strong performance of the bank despite a slowdown in the market. Also the growth in the business has not affected the asset quality. It also highlighted the fact that we are delivering Joy of banking to all by keeping our focus on empowering of the poor and the marginalized”.
The business during the year increased by 49.05% to touch Rs 13,846 crore. The deposits have registered an increase of 62.81 % to Rs 7,028 crore and advances (Assets Under Management) increased by 37.11 % to the tune of Rs 6818 crore. The gross NPA percent reduced from 1.61 % to 1.53% and Net NPA reduced from 0.77% to 0.64% during the year. Also, the provision coverage ratio improved to 79.93% from 78.45% during the previous year.
The Capital position of the bank is comfortable at 24.03% with Tier 1 CRAR of 20.99% as against regulatory requirement of 15% and 7.5% respectively. The bank has sufficient capital cushion for it’s medium term business plan and also has enough headroom under Tier II.
The resilience of the bank’s customer segment is encouraging and it has taken adequate steps to uplift them as the activities are slowly resuming. We are optimistic about the future as the business relaxations given to the rural entrepreneurs can uplift the rural economy and we can play a key role in the same” Mr. Thomas concluded.
At present, ESAF Small Finance Bank has presence in 17 states and one Union Territory in India. As on March 31, 2020, the Bank is serving 35 lakh customer base through 454 branches and 14 Business Correspondent Entities and is operating 222 ATMs across the country.
