ESAF Small Finance Bank has reported an over four-fold jump in net profit to Rs 302.33 crore for the year ended 31 March 2023, from Rs 54.73 crore a year ago. 

The net profit for the quarter ended March 2023 stood at Rs 101.38 crore versus Rs 37.41 crore in the preceding quarter.

Total business (including advances under collection management) grew 23.22% to Rs 30,996.89 crore as against Rs 25,155.76 crore in the previous fiscal year. 

The operating profit for the fiscal year jumped 81.70% to Rs 893.71 crore from Rs 491.85 crore. 

The net interest income (NII) improved by 60.08% from Rs 1,147.14 crore to Rs 1,836.34 crore.

Deposits grew 14.44% to Rs 14,665.63 crore for the year ended March 2023. In the year-ago period, the bank had a deposit base of Rs 12,815.07 crore.

Total CASA (current account savings account) rose 7.18% to Rs 3,137.45 crore from Rs 2,927.40 crore. 

Gross advances grew 16.38% to Rs 14,118.13 crore as of 31 March 2023, compared to Rs 12,130.64 crore a year ago. 

The collection efficiency sustainably improved after the Covid pandemic and the activity level at the field has attained near-normalcy.

  “The soaring profit stands testimony to the opportunities in front while being steadfast in our commitment to sustainability. For us, this result is a celebration of the resilience shown by our loan customers. Also, we are happy that we could create a meaningful impact on the lives of many, especially the underprivileged. As we expand our footprint across India, we will continue to ensure inclusive growth and prosperity for all," said ESAF managing director and CEO K Paul Thomas.

Gross non-performing assets (NPA) and net NPA stand reduced to 2.49% and 1.13% from 7.83% and 3.92%, respectively, during FY2023. 

Capital to risk assets ratio (CRAR) stood at 19.83% as on 31 March 2023 as against the minimum requirement of 15% and earnings per share improved from Rs 1.22 to Rs 6.73.

“We are planning to grow between 25% to 30% this fiscal,” said Paul.

ESAF has 700 branches spread across 21 states and 2 union territories. The customer service points stand at around 777, operated by its business correspondents. 

“We also have a concept of agency banking where there are 2,200 agents reaching out our banking services to unbanked regions areas. School teachers, professors and medical professionals who are retired act as agents in the agency banking model. They help customers operate a micro ATM,” Paul added.