Image Source : The New Indian Express
ESAF Small Finance Bank posted a net profit of ₹71.2 million for the third quarter, supported by interest earnings of ₹8.94 billion. However, provisions and contingencies rose to ₹2.43 billion, while gross NPAs stood at 5.64%. The results highlight cautious growth amid asset quality challenges and rising provisioning needs.
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ESAF Small Finance Bank Limited has released its financial results for the third quarter, reflecting modest profitability alongside rising provisions. The bank continues to strengthen its lending portfolio while navigating asset quality pressures in a competitive small finance banking sector.
Key Highlights:
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Net Profit: ₹71.2 million for Q3 FY2025/26.
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Interest Earned: ₹8.94 billion, showcasing strong lending and deposit activity.
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Provisions & Contingencies: ₹2.43 billion, indicating higher risk coverage.
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Gross NPA: 5.64%, reflecting asset quality concerns.
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Operational Context: Despite rising provisions, the bank maintained profitability, supported by steady interest income.
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Outlook: ESAF is expected to focus on strengthening asset quality and balancing growth with prudent risk management.
The results underscore ESAF’s cautious approach to growth, balancing profitability with the need to safeguard against credit risks. Analysts note that sustained improvement in asset quality will be key to driving stronger earnings in upcoming quarters.
Sources: Company filing (ESAF Small Finance Bank Ltd), Reuters, Business Standard
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