ESAF Small Finance Bank Posts ₹80.08 Crore Net Profit in Q1 FY27

ESAF Small Finance Bank has reported a standalone net profit of ₹80.08 crore for the first quarter of the financial year 2026-27. This is a significant improvement from the ₹81.22 crore net loss reported in the same quarter of the previous year.

The bank's total standalone income for the quarter stood at ₹1,346.01 crore, which is an increase from ₹1,023.37 crore in the corresponding period of the previous year. Total expenses, excluding provisions and contingencies, were ₹997.03 crore, up from ₹898.45 crore a year ago.

The bank's earnings per share (EPS) for the quarter were ₹1.55 each, compared to a loss per share of ₹1.58 (basic) and ₹1.57 (diluted) in the quarter ended 30 June 2025. The Capital Adequacy Ratio (CAR) for the quarter ended 30 June 2026 was 23.86%, and the net worth of the bank stood at ₹1,863.82 crore.

The bank also reported that the proceeds from the non-convertible debentures issued on 25 June 2026, amounting to ₹85 crore, have been fully utilised as per the objects of the issue. Additionally, the bank raised Tier II capital of ₹85.00 crore during the quarter ended 30 June 2026.

ESAF Small Finance Bank allotted 2,89,182 equity shares during the quarter due to the exercise of options under its approved employee stock option scheme. The unaudited standalone financial results for the quarter ended 30 June 2026 were reviewed by the Audit Committee and approved by the Board of Directors on 31 July 2026.

The bank's financial performance is a positive sign for the banking sector, which has been facing challenges in recent times. The increase in income and decrease in net loss are indicative of the bank's efforts to improve its financial health.

The bank's deposits and advances have also shown significant growth. As of FY26, the bank's deposits stood at ₹25,850 crore, and its advances grew by 19.42%. This growth is a testament to the bank's ability to attract and retain customers.

Overall, ESAF Small Finance Bank's financial performance for the first quarter of FY27 is a positive development for the bank and its stakeholders. The bank's focus on improving its financial health and increasing its deposits and advances is expected to yield positive results in the long term.

The bank's performance is also expected to have a positive impact on the overall banking sector in India. The growth of small finance banks like ESAF is crucial for the development of the country's financial inclusion agenda.

In conclusion, ESAF Small Finance Bank's net profit of ₹80.08 crore for the first quarter of FY27 is a significant achievement, and the bank's financial performance is expected to continue to improve in the coming quarters.