ESAF Small Finance Bank Limited — PPTs, 10-08-2025: Investor Presentation

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**Financial Highlights:**

Q1FY26 results show a Net Loss of ₹81.2 Cr. Net Interest Income (NII) decreased YoY, but Non-Interest Income grew significantly to ₹195.14 Cr. Net Interest Margin (NIM) was 6.0%. Total Loan Book reached ₹19,809 Cr, and Deposits grew 8.7% YoY to ₹22,698 Cr. Asset quality saw GNPA at 7.5% and NNPA at 3.8%, though Provision Coverage Ratio improved to 73.2%. CRAR remains healthy at 22.7%.

**Strategic Initiatives & Growth Drivers:**

The bank is diversifying its loan portfolio, with retail loans now comprising 54%. Key strategies include increasing deposits, expanding advances, and deeper market penetration. Emphasis is on leveraging technology for risk management and boosting fee income.

**Business Developments:**

Concentration risk is declining, with Kerala's share of gross advances at 35%. Q1FY26 disbursements reflect a strategic pivot towards 90% secured loans. The bank continues expanding its physical outlets (788 BOs, 713 ATMs) and digital services.

**Market Position & Competitive Advantage:**

ESAF SFB thrives on its strong rural/semi-urban presence, holding 57.3% of gross advances there. Multi-nodal channels, a customer-centric approach, diverse product lineup, and experienced management provide a competitive edge.

**Investor Implications:**

Despite the Q1FY26 loss, the bank's improved PCR and strategic shift to secured lending/diversified income may underpin future stability. Investors should monitor growth execution and the path to profitability amidst current headwinds.