ESAF Small Finance Bank reported a 25% year-on-year increase in total business to ₹51,141 crore for the quarter ended June 30, 2026, driven by robust growth in both deposits and advances. Total deposits grew 18.62% to ₹26,925 crore, while gross advances increased 27.39% to ₹23,216 crore. The bank added 1.86 lakh new customers during the quarter, expanding its customer base to 1.04 crore. The financial data for the quarter ended June 30, 2026, is provisional and subject to limited review by the statutory auditors of the bank. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Deposit and Advance Growth

Term deposits rose 20.83% year-on-year to ₹20,627 crore, while Current Account Savings Account (CASA) deposits increased 11.90% to ₹6,298 crore. The CASA ratio stood at 23.39% as on June 30, 2026, compared to 24.79% in the prior year. On the advances side, micro loans grew 16.10% to ₹8,733 crore, and retail and other loans surged 35.32% to ₹14,483 crore. The following table summarises the key financial metrics for the quarter:

Key Financial Metrics (₹ in Crore)

Operational Highlights

Disbursements increased from ₹7,700 crore in Q1 FY26 to ₹8,381 crore in Q1 FY27, representing a year-on-year growth of approximately 9%. The Credit-Deposit (CD) ratio stood at 86.22% as on June 30, 2026, up from 80.29% in the previous year. Secured advances constituted 62.38% of gross advances, compared to 58.73% a year ago. The bank's distribution network comprised 821 branches, 721 ATMs, and 1,065 Customer Service Centres spanning 24 states and 2 union territories as of June 30, 2026.

ESAF Small Finance Bank has allotted non-convertible debentures (NCDs) aggregating ₹85 crore through a private placement to strengthen its capital base. The bank's Allotment Committee of Executives approved the issuance of 8,500 unsecured, listed, and taxable Basel II compliant lower Tier II subordinated bonds on June 25, 2026. These debt instruments carry a fixed coupon rate of 11.65% per annum, payable quarterly, providing investors with a steady income stream over the instrument's life.

The NCDs are classified as fully paid-up and redeemable with a face value of ₹1,00,000 each. The issuance was conducted under the regulatory framework provided by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank intends to list these securities on the Negotiated Trade Reporting Platform under the New Debt Market segment of the National Stock Exchange of India Limited, ensuring liquidity for the bondholders.

Key Details of the Allotment

The debentures have a defined tenure of 73 months, with the date of allotment recorded as June 25, 2026, and the maturity date set for July 25, 2032. The specific details regarding the instrument are outlined below:

The issuance is part of the bank's broader strategy to manage its capital adequacy and leverage long-term funding options. As the instruments are unsecured, they do not carry any charge over the bank's assets. The ISIN designated for these securities is INE818W08172. The disclosure was formally communicated to the stock exchanges by Ranjith Raj. P, the Company Secretary and Compliance Officer of ESAF Small Finance Bank.