K. Paul Thomas, Managing Director & CEO, ESAF Small Finance Bank
| Photo Credit:
The Hindu
Marking a return to profitability, ESAF Small Finance Bank has registered a net profit of ₹7 crore for Q3 FY26, as against a loss of ₹211 crore in the same quarter last year and a loss of ₹115.81 crore in Q2 FY26.
The total business stood at ₹44,686 crore as of December 31, 2025, registering a year-on-year growth of 10 per cent. Gross advances grew by 13.1 per cent to ₹20,679 crore, while deposits increased by 7.1 per cent to ₹24,006 crore.
K. Paul Thomas, Managing Director & CEO, ESAF Small Finance Bank, said “Q3 FY26 marks a strong turnaround, driven by the successful execution of our MARG strategy—focusing on MSME, Agri, Retail and Gold lending. The sharp improvement in asset quality and return to profitability clearly validates our shift towards a more secure, granular and sustainable portfolio. With secured assets now accounting for 63 per cent of our advances and witnessing strong traction, we are building a resilient balance sheet for long-term growth. Our continued investments in technology, operational efficiency and risk management position us well to deliver consistent performance while staying true to our inclusive banking mission.”
Secured loan disbursements surged by 149 per cent to ₹10,530 crore during the quarter. As a result, secured assets now constitute 63 per cent of gross advances, up from 45 per cent a year ago, validating the Bank’s strategic focus on building a more resilient and better-quality portfolio. The bank remains on track to achieve its 70 per cent secured portfolio target by March 2027.
Asset quality saw a meaningful turnaround during the quarter, with gross NPA reducing to 5.6 per cent from 8.5 per cent in the previous quarter and net NPA declining to 2.7 per cent from 3.8 per cent. The bank added nearly 2 lakh new customers during the quarter, taking the total customer base to 99.9 lakh, reflecting strong traction across products and geographies.
Published on January 31, 2026
