ESAF Small Finance Bank Limited — Important, 08-08-2025: General Updates

ESAF Small Finance Bank reported a net loss of Rs 81.22 Cr for the quarter, a significant decline from Rs 6.28 Cr profit last year. This swing was primarily due to higher provisions and a drop in operating profit. Asset quality deteriorated, with Gross NPA rising to 7.48% and Net NPA to 3.77%. Operationally, the bank absorbed 5,109 employees from its largest business correspondent, ESMACO, incurring an exceptional cost of Rs 58 Cr for staff value addition/training, aiming to reduce concentration risk. Additionally, Rs 733.40 Cr in stressed loans were transferred to an Asset Reconstruction Company.