ESAF Small Finance Bank records a net profit of Rs. 129.96 crores in the first quarter of FY 23-24

ESAF Small Finance Bank Limited ("ESAF Bank" or "Bank") recorded an increase by 22.64% on a year-on-year basis with a net profit of Rs. 129.96 crores for the quarter ended June 30, 2023, compared to a net profit of Rs. 105.97 crores during the corresponding quarter of the last fiscal year. The Bank's operating profit (which the Bank defines as net profit including provisions and contingencies) grew by 33.46% to Rs. 300.67 crores from Rs. 225.29 crores in the corresponding quarter of the previous fiscal year.

The Net Interest Income (which the Bank defines as interest earned minus interest expended) ("NII"), a crucial measure of the Bank's core operations, increased by 30.46% on a year-on-year basis to Rs. 585.45 crores for Q1 2023-24 from Rs. 448.76 crore for the corresponding quarter of the last fiscal year, underscoring ESAF Bank's prudent lending practices and interest rate management strategies. ESAF Bank's business position exhibited its ability to drive robust growth. The total Advances under Management increased by 35.08%, reaching Rs. 17,203 crores as of June 30, 2023 from Rs. 12735 crores as of 30 June 2022, indicating the Bank's successful expansion of its lending portfolio. Furthermore, the Total Deposits increased by 16.33% to Rs. 15,656 crores as of 30 June 2023 from Rs. 13,458crore as of 30 June 2022, which the Bank believes showcase strong customer confidence in the Bank. The Bank's Non-Performing Asset ("NPA") position has significantly improved. As of June 30, 2023, the Bank's GNPA stood at Rs. 237.61 crores and the NNPA amounted to Rs. 115.61 crores, reflecting a substantial decrease in comparison with the same period of the previous year when the GNPA stood at Rs. 734.36 crores and the NNPA amounted to Rs. 439.42 crores. The Bank's proactive measures and efficient asset quality management have resulted in reduced GNPA ratio of 1.65% and NNPA ratio of 0.81% as of 30 June 2023 compared to gross NPA ratio of 6.16% and a net NPA ratio of 3.78% as of 30 June 2022.

Enhanced Efficiency and Capital Adequacy

ESAF Bank's Capital to Risk-Weighted Assets Ratio ("CRAR") for the quarter ended June 30, 2023 stood at 20.56%, indicating a robust capital position. Earnings per Share ("EPS") improved to Rs. 2.89 for the quarter ended June 30, 2023 from Rs. 2.36 for the corresponding period in the previous fiscal year, highlighting the Bank's focus on profitability.

"We are pleased to announce these positive financial results for Q1 of FY 2023-2024, which reflects our dedication to prudent banking practices and delivering value to our customers. We remain committed to sustainable growth and community development" said Kadembelil Paul Thomas, the Managing Director & Chief Executive Officer of ESAF Bank. "With a focus on innovation, growth, and customer-centric solutions, ESAF Bank continues to contribute to the financial ecosystem and drive economic development", he added.

Source : Equity Bulls

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ESAFSmallFinancebank Q1FY24 ResultUpdate