ESAF Small Finance Bank reports

 ESAF Small Finance Bank reports

28.07% increase in operating profit

 

Kerala-based social bank, ESAF Small Finance Bank has recorded a 28.07 % increase in its operating profit for the year ended March 31, 2021. The Operating profit increased from 324.70 crores to 415.84 crores despite the challenges faced during the year. Deposits have grown by 28.04% from ` 7028 Crore as at 31 March 2020 to

` 8999 Crore for the year ended 31 March 2021. Total CASA improved to ` 1748 Crores from ` 960 Crores marking a growth of 81.99% over the same period last year. CASA proportion to Deposits also significantly improved from 13.55% for the Year ended

31 March 2020 to 19.42% for the year ended 31 March 2021. The Net Profit of the Bank for the year ended 31 March 2021 stood at ` 105.40 Crore as compared to ` 190.39 over the same period last year. Further, the Bank as a prudent measure holds provision in excess of the RBI requirement in the standard category to the extent of ` 91 Crore as at 31 March 2021.

Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said “The bank has improved operating profit and total business despite the challenges posed by the pandemic. With the support of our customers and their unwavering faith in us, we could also enhance our presence across the country. The reduction in the PAT was mainly due to the higher provisions during the fiscal.”

Gross Advances increased by 27.37% from ` 6606 crore to ` 8415 Crore while total Business reached ` 17,425 Crore registering a growth of 25.85% as on 31 March 2021. It was ` 13,846 Crore last year.

During the  year the Bank has raised Tier I capital amounting to ` 162.59 Crore by way  of a private placement. This along with the current year’s profit improved the CRAR by 20 BPS from 24.03% as at 31 March 2020 to 24.23% as at 31 March 2021, despite the increase in business.

Due to a severe crisis at the Grass root level due to the pandemic, the collection efficiency was adversely impacted thereby increasing the gross NPA level at 6.70% and Net NPA by 3.88%.

At present, ESAF Small Finance Bank has a presence in 19 states and 2 union territories. The bank launched 96 branches in the last financial year. As on March 31, 2021, the Bank is serving over 43 lakh customers through 550 branches and 308 Customer Service Centres.

 

ESAF Small Finance Bank raises

         ESAF Small Finance Bank raises Rs 162 Cr through preferential allotment

§  Achieves 26% YoY business growth

ESAF Small Finance Bank has raised Rs 162 crore as equity through preferential allotment of shares. A total of Rs 2.18 cr shares were allotted preferentially, to certain investors in the HNI category including some existing investors, leading to a dilution of approx. 5%, at Rs 75 per share. The shares were priced at 2.64 times pre-issue, and 2.45 times post issue, of its book value as of September 30, 2020.

“The additional capital raised will strengthen the Capital Adequacy by about 250 basis points and will support our ambitious growth plan set for FY 22. The overwhelming response shown by our investors during these tough times gives us the confidence to aim big. Considering the comfortable capital position and subdued market outlook on BFSI stocks we have decided to postpone the IPO scheduled for the last Financial Year” said K. Paul Thomas, MD & CEO, ESAF Small Finance Bank. 

Also, the bank has registered stupendous growth during these challenging times. As per the unaudited results, the bank has achieved a YoY growth of 25.86% in gross business during FY 2020-21. The Bank has reported a 28.04% year-on-year rise in total deposits to Rs 9,000 crore and Advances crossed Rs.8413 crore at a growth of 23.61%, as on 31^st March 2021. Total business crossed Rs. 17,412 crore against Rs. 13,835 crore in the year-ago period.  

“The results show our commitment to our stakeholders. We are also thankful for the resilience shown by our customers” concluded K. Paul Thomas.

The CASA growth was impressive at 82 percent, thanks to the focused strategies adopted by the bank. The CASA component stood at 19.42% vis-a-vis 13.66% recorded in the previous year. The bank has also opened 96 new outlets during the year ended March 31, 2021, to take the total number of branches to 550.

At present, ESAF Small Finance Bank has a presence in 19 states and two union territories in India with a client base of 4.3 million-plus.

ESAF Small Finance Bank Wins Global

 ESAF Small Finance Bank Wins Global Sustainability Award

ESAF Small Finance Bank has won the Global Sustainability Award 2020 organised by Energy and Environment Foundation. Bank founder and CEO K. Paul Thomas received the award from Union minister Gajendra Singh Shekhawat in an online summit attended by Marise Payne, Australia's minister for foreign affairs. The bank was selected for this year's award in recognition of its outstanding contributions, commitment and actions that have made a positive impact on the environment.

Receiving the award MD and CEO of ESAF K. Paul Thomas said, "The award is recognition to ESAF's unique social business strategy with a triple bottom line approach emphasizing people, planet and prosperity throughout our journey of three decades impacting over 4.4 million people and their families spread across different states of India as a social bank." He also congratulated all other winners in the journey together for a sustainable world as a legacy to leave to our next generation.

Keith Pitt, Australia's minister for resources, Barry O'Farrell, Australian High Commissioner in India, U.P Singh, secretary, ministry of water resources, Anil Razdan, chairman of Energy and Environment Foundation and others delivered speeches in the annual event.  The Global Sustainability Award serves as an inspiration for the transformative action, business excellence and environment management across the world to improve the management of natural resources, demonstrating new ways to tackle climate change or raising awareness of emerging environmental challenges.

ESAF Small Finance Bank MD Paul Thomas elected

ESAF Small Finance Bank MD Paul Thomas elected as Chairman of Sa-Dhan

MD and CEO of ESAF Small Finance Bank, K. Paul Thomas has been elected as the Chairman of Sa-Dhan, the largest association of community development finance institutions in India. The announcement was made at 22^nd Annual General Meeting of Sa-Dhan.  Mukul Jaiswal, MD, Cashpor Micro Credit is elected as Co-Chair and HP Singh, CMD, Satin CreditCare Network Ltd is elected as Treasurer of Sa-Dhan.

Commenting on the new role, Mr K. Paul Thomas said that he is positively looking forward to as the Chairman of Sa-Dhan, the oldest organization of financial inclusion institutions in the country. “Sa-Dhan has played a crucial role in building the standard practice norms for the sector. I strongly believe in the importance of promoting responsible finance to protect the interests of underserved and unserved borrowers,” he said.

Sa-Dhan is a Reserve Bank of India recognized self-regulatory organization for non-banking financial companies and microfinance institutions. K. Paul Thomas is the Founder of ESAF Group of Social Enterprises. He has been a management professional for over 32 years out of which more than 25 years are in the financial inclusion sector.

ESAF Small Finance Bank Profit Soars

ESAF Small Finance Bank Profit Soars 110%

ESAF Small Finance Bank has recorded a 110.86 %, increase in its net profit for the year ended March 31,2020.   The net profit for the Financial Year increased to 190.39 crore from Rs 90.29 crore registered in the year before. 

Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said “the encouraging results showed the strong performance of the bank despite a slowdown in the market. Also the growth in the business has not affected the asset quality. It also highlighted the fact that we are delivering Joy of banking to all by keeping our focus on empowering of the poor and the marginalized”.

The business during the year increased by 49.05% to touch Rs 13,846 crore.  The deposits have registered an increase of 62.81 % to Rs 7,028 crore and advances (Assets Under Management) increased by 37.11 % to the tune of Rs 6818 crore. The gross NPA percent reduced from 1.61 % to 1.53% and Net NPA reduced from 0.77% to 0.64% during the year.  Also, the provision coverage ratio improved to 79.93% from 78.45% during the previous year.

The Capital position of the bank is comfortable at 24.03% with Tier 1 CRAR of 20.99% as against regulatory requirement of 15% and 7.5% respectively. The bank has sufficient capital cushion for it’s medium term business plan and also has enough headroom under Tier II.

The resilience of the bank’s customer segment is encouraging and it has taken adequate steps to uplift them as the activities are slowly resuming. We are optimistic about the future as the business relaxations given to the rural entrepreneurs can uplift the rural economy and we can play a key role in the same” Mr. Thomas concluded.

At present, ESAF Small Finance Bank has presence in 17 states and one Union Territory in India. As on March 31, 2020, the Bank is serving 35 lakh customer base through 454 branches and 14 Business Correspondent Entities and is operating 222 ATMs across the country.   

ESAF Small Finance Bank Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus (“DRHP”) with the Securities and Exchange Board of India. The DRHP is available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the book running lead managers, Axis Capital Limited, Edelweiss Financial Services Limited, ICICI Securities Limited and IIFL Securities Limited, at www.axiscapital.co.in, www.edelweissfin.com, www.icicisecurities.com and www.iiflcap.com respectively, and the websites of the stock exchanges at www.bseindia.com and www.nseindia.com, respectively. 

Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see "Risk Factors" of the RHP/ Prospectus when available. Potential investors should not rely on the DRHP for any investment decision

ESAF Small Finance Bank appoints C.P Gireesh

ESAF Small Finance Bank appoints C.P Gireesh as the 

Chief Financial Officer

ESAF Small Finance Bank today announced the appointment of C. P. Gireesh as the new Chief Financial Officer effective from September 5, 2018. He was the Former CFO of South Indian Bank.

Gireesh is a Charted Accountant with over 23 years of experience in Banking Industry. He started his career as Junior Manager (Finance & Accounts) in Steel Authority of India (SAIL) at Rourkela Steel Plant, Orissa. He has rich experience in Investor Relations, Credit Marketing, Finance and Accounting.

Since July 2012 C. P. Gireesh was heading the CFM Department and holding the KMP position of Chief Financial Officer of South Indian Bank.