Kochi, Kerala August 01: ESAF Small Finance Bank has reported a strong turnaround in the first quarter FY27, posting a Profit After Tax (PAT) of ₹80 Crore, delivering sustained profitability, healthy business growth and significant improvement in asset quality. The Bank‘s total business reached ₹51,140 Crore, driven by robust growth in secured lending and retail deposits, reflecting the successful execution of its strategic transformation.
Commenting on the performance, Dr. K. Paul Thomas, Managing Director & CEO, ESAF Small Finance Bank, said: “Q1 FY27 reflects the steady progress of ESAF Bank‘s transformation journey. Our strategy of building a diversified, secured and customer-centric portfolio is delivering encouraging results across growth, profitability and asset quality. During the quarter, Total Business reached ₹51,140 Crore, while secured assets increased to 62% of our advances, strengthening the resilience of our balance sheet. We remain focused on expanding our presence across MSME, Agriculture, Retail, Gold Loans and the Emerging Household segment, while continuing to deepen financial inclusion. Our investments in technology, digital capabilities, operational excellence and prudent risk management will continue to support sustainable and profitable growth in the coming quarters.”
Bank’s Gross Advances stood at ₹23,216 Crore, registering 27% YoY growth. Secured Advances increased to ₹14,465 Crore, up 35% YoY, now accounting for 62% of the portfolio compared to 59% a year ago. The strategic MARG portfolio recorded 42% YoY growth (8% QoQ), while the unsecured portfolio stood at ₹8,751 Crore, growing 16% YoY. The Emerging Household (EH) portfolio continued its strong momentum with 185% YoY growth, reflecting the Bank‘s strategy of supporting graduating microfinance customers and expanding relationships through a wider suite of banking products.
The bank’s Total Deposits increased to ₹26,924 Crore, registering 19% YoY growth. CASA stood at ₹6,297 Crore, up 12% YoY, with the CASA ratio at 23.4%. The Cost of Funds improved to 7.1% from 7.4% in Q1 FY26, while the Credit-to-Deposit ratio stood at 82.3%. The Bank continued to strengthen its asset quality, with GNPA/NNPA improving to 5.4%/0.8% as on 30 June 2026 from 7.5%/3.8% a year earlier. The Provision Coverage Ratio improved to 85.5% from 73.2%, while slippages declined 84% YoY and 29% QoQ in Q1 FY27.
Interest Income rose to ₹1,098 Crore, a growth of 33% YoY, while Net Interest Margin (NIM) improved from 6.0% to 7.9%. The Cost-to-Income ratio improved to 58.1% from 78.2%, and Pre-Provision Operating Profit (PPOP) surged 179% YoY to ₹349 Crore. Continuing its sequential recovery, the Bank reported a Profit After Tax (PAT) of ₹80 Crore, compared to a loss of ₹81 Crore in Q1 FY26. Return on Assets (RoA) stood at 1.0%, while Return on Equity (RoE) was 17.5%. The Bank maintained a strong capital and liquidity position, with a Capital Adequacy Ratio (CRAR) of 23.9%, Net Worth of ₹1,864 Crore, and Liquidity Coverage Ratio (LCR) of 133.3% as on 30th June 2026.