ESAF Small Finance Bank Reports Robust FY26 Growth: Secured Advances Surge 38%

ESAF Small Finance Bank Limited (NSE: ESAFSFB; BSE: 544020) has released its provisional business update for the quarter and financial year ended March 31, 2026. The bank demonstrated a strategic shift toward a more secured lending profile, alongside a significant expansion in its customer base and distribution network.

Lending Performance: Strategic Shift to Secured Assets

The bank's Gross Advances grew by 19.42% YoY, reaching ₹22,426 crore. A key highlight was the aggressive growth in Retail and Other Loans (Secured Advances), which surged 37.88% to ₹13,680 crore. These secured assets-comprising Gold loans, Mortgages, MSME, and Agriculture loans-now constitute 61% of the total portfolio, up from 52.84% last year.

Disbursements: Annual disbursements witnessed an extraordinary jump of 103%, rising from ₹20,985 crore in FY25 to ₹42,529 crore in FY26.

NPA Management: The bank sold NPAs worth ₹1,019 crore during the year. Excluding this sale, the Year-on-Year growth in advances would have been higher at 24.85%.

Credit-to-Deposit (CD) Ratio: The ratio stood at 86.75%, reflecting increased credit utilization compared to 80.68% in the previous year.

Deposit Trends and CASA

Total deposits increased by 11.05% YoY to reach ₹25,850 crore.

Term Deposits: Grew by 12.43% to ₹19,669 crore.

CASA: Low-cost CASA deposits grew by 6.88% to ₹6,181 crore.

CASA Ratio: The ratio stood at 23.91%, slightly lower than the 24.84% recorded in March 2025, as term deposits grew at a faster pace.

Network and Customer Growth

ESAF Small Finance Bank now serves a massive customer base of 1.02 crore, having added over 8 lakh new customers during the financial year. Its physical footprint has expanded to 804 branches, 720 ATMs, and 1,049 Customer Service Centres across 24 states and 2 union territories.

Shares of ESAF Small Finance Bank Limited was last trading in BSE at Rs. 23.57 as compared to the previous close of Rs. 22.43. The total number of shares traded during the day was 42313 in over 481 trades.

The stock hit an intraday high of Rs. 23.63 and intraday low of 21.80. The net turnover during the day was Rs. 960836.00.

Source : Equity Bulls

Keywords

ESAFSmallFinanceBank INE818W01011 ESAFSFB Q4 FY2026 BusinessUpdate