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 announces closing

ESAF Small Finance Bank announces closing 

of INR 464 Cr Private Placement - 10th October 2018

ESAF Small Finance Bank announced the completion of private placement of the Company's common stock worth INR 464 Cr. ICICI Securities Ltd served as the advisor for the private placement. Polymath Advisors, Mumbai also associated with ESAF SFB in these transactions. PNB MetLife India Insurance Co. Ltd. and ESAF Multi-State Co-operative have taken a stake of 4.99% each in the Bank. Bajaj Allianz Life Insurance Co. Ltd. and ICICI Lombard General Insurance Co. Ltd. have taken a stake of 4.08% and 1.45% respectively. Seven other investors have also taken stake in ESAF Small Finance Bank.

With the infusion of additional capital the net worth of the bank has increased to 807 crore and the CRAR to 27.9 percent. “We are extremely pleased with the success of this transaction and the confidence expressed in our continued growth and profitability,” said K. Paul Thomas, MD and CEO, ESAF Small Finance Bank. “The proceeds from the private placements will be used for general corporate purposes, capital management and to support future growth” he added.  

ESAF has accumulated 3 billion worth deposits in the first half of the Financial Year and has added 2.5 million customers. The bank currently has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets spread across 11 states in India. With 2 million borrowers, the bank has accumulated 4.4 billion in loans and advances.