ESAF Small Finance Bank net profit jumps 41.09% yoy to Rs130.42cr in H1FY21

ESAF Small Finance Bank Limited, one of the leading small finance banks in India in terms of yield on advances, AUM growth rate, and share of retail deposits (Source: CRISIL Research Report), has posted a 41.09% jump in net profit to Rs130.42cr for the half-year ended September 30, 2020, as against Rs92.44cr posted in the same period last year.

The company’s total business during the period increased by 35.06% yoy to Rs15,582cr. Meanwhile, the deposits rose by 35.38% yoy to Rs8208cr and advances increased by 34.70% yoy to Rs7374cr.

Gross NPAs as a percentage of gross advances decreased from 1.76% as at 30 September 2019 to 1.32% as at 30 September 2020 and net NPAs as a percentage of net advances reduced from 0.62% as at 30 September 2019 to 0.19% as at 30 September 2020.

The provision coverage ratio improved to 93.45% as of 30 September 2020 from 81.53% as of 30 September 2019. The CRAR was 24.29% with Tier I CRAR of 21.10% as of 30 September 2020, as against a regulatory requirement of 15% and 7.50%, respectively.

Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said: “The bank has performed well during the period and I believe the results show that the micro-entrepreneurs are in a recovery mode after the Covid-19 pandemic induced slow down, indicating a positive sign for the economy altogether.”

The bank opened 29 branches during the half-year ended September 30, 2020, giving it a total of 483 branches across 19 states and two Union Territories.