ESAF Small Finance Bank Limited — PPTs, 14-11-2024: Investor Presentation

**Financial Highlights:** For the quarter and half-year ended September 30, 2024, ESAF Small Finance Bank reported a total loan book of ₹19,216 cr, reflecting year-on-year growth of 9.9%. Interest income increased by 5.6% compared to the previous year, amounting to ₹996.38 cr. However, net interest income decreased by 9.4% to ₹540.32 cr. The bank's profit after tax showed a negative trend, dropping to ₹ (190.06) cr for Q2, compared to ₹241.48 cr last year.

**Strategic Initiatives and Growth Drivers:** The bank is focusing on expanding its branch network and enhancing its customer service with a digital-driven approach, which includes cashless disbursements and improved loan processing times. It plans to engage more business correspondents for deposit sourcing and target high NRI remittance regions.

**Business Developments:** The bank absorbed over 5,100 employees during a strategic transition to reduce reliance on individual business correspondents, thereby improving operational control.

**Market Position and Competitive Advantage:** With an extensive network of 756 banking outlets and 646 ATMs across 24 states and 2 UTs, ESAF maintains a strong presence in rural and semi-urban markets, positioning itself as a leader in social banking.

**Investor Implications:** Despite a recent decline in profitability, the bank’s strategic focus on operational efficiency and technology integration suggests a positive outlook for future growth and customer engagement, warranting close attention from investors.