The Board of Directors of ESAF Small Finance Bank, in the meeting held on September 20, 2025, approved key decisions including plans to raise Tier I capital by issuing equity shares through various permissible methods like rights issue or private placement, subject to shareholder approval. Additionally, the bank approved amending its Memorandum of Association to increase authorized capital from Rs. 600 Crores to Rs. 1000 Crores, pending RBI and shareholder approvals. The board also noted the early relieving of the Executive Vice President – Human Resource, Shri George Thomas, effective September 30, 2025, due to personal reasons.

ESAF Small Finance Bank is a micro, retail, and corporate banking institution with a focus on underserved segments, including microfinance, retail and para banking activities, treasury, and foreign exchange. Since its incorporation in 1992, it has steadily expanded its services, especially focusing on secured lending and financial inclusion for low-income and rural customers through specialized products like gold loans, microloans, and housing finance. The bank is also strategically shifting its portfolio toward secured loans to mitigate asset quality risks.

In the recent quarters, ESAF Small Finance Bank has faced challenges with profitability but is progressing on its business growth. In Q1 FY26, the bank reported a net loss of Rs. 81.22 Crores, which was an improvement from a net loss of Rs. 183 Crores in the previous quarter. The bank’s revenue slightly declined from Rs. 1036 Crores in Q4 FY25 to Rs. 1023 Crores in Q1 FY26. This quarter also saw the bank’s operating EBITDA grow 57.35% QoQ. The strategic focus remains on increasing secured loans share and improving asset quality. Notable investors include various institutional players typical to the banking sector, although no single famous investor stands out prominently in recent disclosures.

(Amounts consistently presented in Crores)

This captures the bank’s trajectory amid strategic corporate changes designed to strengthen capital and enhance operational resilience in 2025, positioning ESAF Small Finance Bank for future growth and stability.