ESAF Small Finance Bank transfers ₹1,694-crore NPA portfolio to ARCs for ₹183 crore

Thrissur-based private lender ESAF Small Finance Bank Ltd on Monday (December 29) said it has completed the sale of its non-performing assets (NPA) and technically written-off loans to asset reconstruction companies (ARCs) for an aggregate consideration of ₹183.18 crore.

The bank had earlier informed shareholders on December 12, 2025, about the board’s approval to proceed with the sale of the specified loan portfolio. Following the conclusion of the Swiss Challenge Method, ESAF Small Finance Bank finalised the transfer of loans with an outstanding amount of ₹1,693.65 crore as of the cut-off date of September 30, 2025.

Second Quarter Results

ESAF Small Finance Bank reported a 5.93% year-on-year (YoY) growth in total deposits, reaching ₹22,894 crore as of September 30. CASA deposits rose 13.67% YoY to ₹6,046 crore during the same period. The CASA ratio improved to 26.41% as of September 30, 2025, compared with 24.61% a year earlier.

Also Read: ESAF Small Finance Bank Q1 deposits rise 8.6% YoY, gross advances decline 3%

Gross advances increased by 4.35% YoY to ₹19,137 crore as of September 30. Secured advances saw a significant 62.31% surge, touching ₹11,711 crore. These include gold loans, mortgage, mobility, MSME, and agriculture portfolios. The share of secured advances in total advances rose sharply to 61.20% from 39.34% in the previous year.

The bank’s customer base reached 97.76 lakh as of September 30, with 1.96 lakh new customers added during the quarter. ESAF Bank’s distribution network comprised 788 branches, 718 ATMs, and 1,113 customer service centres, spanning 24 states and two UT as of the second quater of FY26.

Shares of ESAF Small Finance Bank Limited ended at ₹26.29, up by ₹0.040, or 0.15%, on the BSE today, December 29.

Also Read: ESAF Small Finance Bank shares jump 10% after selling ₹735 crore bad loans to an ARC