ESAF’s Balancing Act: Soaring Interest Earned, Mounting NPAs, and a Shrinking Net Loss

ESAF Small Finance Bank reported its numbers for the March 2025 quarter, with interest income of ₹8.93 billion. Its net loss for the quarter was ₹1.83 billion, lower than the loss of ₹2.10 billion in the previous quarter. It is compared with the bank having reported a net profit of ₹433 million during the same quarter last year.

 

Gross quarterly revenue dropped to ₹1.03 billion from ₹1.06 billion in Q4. Gross non-performing assets (GNPA) ratio of the bank increased to 6.87% in the March quarter from 4.76% in the same period last year, which indicates increasing asset quality concerns. Net NPA was 2.99%, which was almost identical with the previous quarter.

 

Quarterly provisions dropped to ₹3.31 billion from ₹4.10 billion in Q3 but were higher than the ₹2.26 billion provisioned in the corresponding quarter last year. Bank stocks closed marginally higher at ₹31.07 following the announcement.

 

The figures reflect ongoing challenges in asset quality and profitability for ESAF Small Finance Bank, which is having trouble controlling losses and credit risks in a tough operating environment.

 

Source: Onmanorama Business News