The business during the year increased by 49.05% to touch Rs 13,846 crore.

ESAF Small Finance Bank on Friday said that it has recorded a 110.86 % increase in its net profit for the year ended March 31, 2020. The net profit for the Kerala-based small bank increased to `190.39 crore in FY20 from `90.29 crore recorded in the year before.

The business during the year increased by 49.05% to touch Rs 13,846 crore. The deposits have registered an increase of 62.81% to Rs 7,028 crore and advances (Assets under Management) increased by 37.11% to the tune of Rs 6,818 crore. The gross NPA declined from 1.61 % to 1.53% and Net NPA declined from 0.77% to 0.64% during the year. Also, the provision coverage ratio improved to 79.93% from 78.45% during the previous year.

Commenting on the results, K Paul Thomas, managing director and CEO of ESAF Small Finance Bank, said “The encouraging results showed the strong performance of the bank despite a slowdown in the market. Also, the growth in the business has not affected the asset quality. It also highlighted the fact that we are delivering joy of banking to all by keeping our focus on empowering of the poor and the marginalised”.

The bank has sufficient capital cushion for its medium term business plan and also has enough headroom under Tier II. “We are optimistic about the future as the business relaxations given to the rural entrepreneurs can uplift the rural economy and we can play a key role in the same” Thomas added.