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ESAF Small Finance Bank Posts Strong Q1 Performance: Total Business Surges to ₹51,141 Crore

Posted On : 2026-07-03 19:31:25( TIMEZONE : IST )

ESAF Small Finance Bank Limited has released its provisional business updates for the first quarter ended June 30, 2026. The bank revealed robust year-on-year growth across its deposit portfolio, credit expansion, and overall business operations.

The bank's total business, including Inter-Bank Participation Certificates (IBPC), scaled to ₹51,141 Crore as of June 30, 2026, marking a significant rise from the ₹40,923 Crore recorded during the same period in the previous year.

Double-Digit Growth in Deposits

ESAF Small Finance Bank reported an 18.62% year-on-year (YoY) increase in total deposits, which reached ₹26,925 Crore for the quarter ending June 30, 2026, up from ₹22,699 Crore in June 2025. This also reflects a steady quarter-on-quarter (QoQ) growth of 4.16% against the ₹25,850 Crore registered on March 31, 2026.

Term Deposits: Reached ₹20,627 Crore, growing 20.83% YoY from ₹17,071 Crore and 4.87% QoQ from ₹19,670 Crore.

CASA Deposits: Witnessed an 11.90% YoY expansion to hit ₹6,298 Crore compared to ₹5,628 Crore in the previous year's first quarter, with a 1.89% sequential growth from March 2026.

CASA Ratio: Settled at 23.39% for the quarter, compared to 24.79% in June 2025 and 23.91% in March 2026.

Strong Loan Disbursements and Shift Toward Secured Advances

The bank's credit segment showed sharp acceleration, driven primarily by retail and diversified loan structures. Gross advances spiked by 27.39% YoY to reach ₹23,216 Crore, while advances inclusive of IBPC grew by 32.87% YoY to stand at ₹24,216 Crore.

Retail and MARG Portfolio: Retail and other loans-spearheaded by the MARG portfolio (covering MSME, Agri Retail, and Gold Loans)-experienced a massive 35.32% YoY growth, climbing to ₹14,483 Crore.

Micro Loans: Expanded by 16.10% YoY to reach ₹8,733 Crore from ₹7,522 Crore, showing a minimal sequential decline of 0.16% compared to March 2026.

Credit Structure Improvements: The bank successfully increased its share of secured advances, which now constitute 62.38% of gross advances compared to 58.73% as of June 30, 2025.

Disbursements & CD Ratio: Total disbursements grew by approximately 9% YoY, rising from ₹7,700 Crore in Q1 FY26 to ₹8,381 Crore in Q1 FY27. Consequently, the Credit-Deposit (CD) ratio increased to 86.22% from the 80.29% recorded in June 2025.

Expanding Physical Footprint and Customer Base

Alongside financial milestones, ESAF Small Finance Bank continues to scale its physical presence and market reach. The bank's total customer base crossed the milestone of 1.04 Crore as of June 30, 2026, bolstered by the addition of 1.86 lakh new customers during the April-June quarter alone.

To service this expanding customer base, the bank's distribution network has grown to include 821 branches, 721 ATMs, and 1,065 Customer Service Centres. This extensive infrastructure now stretches across 24 states and 2 union territories.

Note: The financial data presented for the quarter ended June 30, 2026, is provisional and subject to a limited review by the statutory auditors of the bank.

Shares of ESAF Small Finance Bank Limited was last trading in BSE at Rs. 34.01 as compared to the previous close of Rs. 33.63. The total number of shares traded during the day was 73354 in over 443 trades.

The stock hit an intraday high of Rs. 34.49 and intraday low of 33.59. The net turnover during the day was Rs. 2494699.00.