ESAF Small Finance Bank clears sale of up to ₹1,700 crore NPAs to ARC

ESAF Small Finance Bank on Friday said its Board has approved the sale of up to ₹1,700 crore worth of non-performing assets and written-off loans to an Asset Reconstruction Company (ARC).

The pool carries

an overall provision coverage of 94%, according to the exchange filing. The Asset Sale Committee has been authorised to negotiate and finalise valuation using the Swiss challenge method, the bank said.

Ahead of the announcement, shares of ESAF Small Finance Bank Ltd closed 0.71% higher at ₹25.64 on the NSE.

In the same meeting, the Board also noted the retirement of four directors — Shri Ajayan Mangalath Gopalakrishnan Nair, Shri Ravi Venkatraman, Shri Gabriel John Samuel (all effective December 12, 2025), and Shri Ravimohan Periyakavil Ramakrishnan, who retires as Part-Time Chairman and Independent Director with effect from 20 December 2025.

Additionally, the bank has reconstituted several Board committees, including the Audit Committee, Risk Management Committee, Stakeholders Relationship Committee, and CSR & Sustainability Committee, with changes effective December 13, 2025.

The meeting, held between 2:00 pm and 4:15 pm, also confirmed that disclosures have been uploaded to the bank’s website.