ESAF Small Finance Bank has announced significant strategic decisions aimed at strengthening its capital base and preparing for future growth. The bank's Board of Directors has approved several key measures in a meeting held on September 20, 2025.

Capital Raising Initiatives

The Board has given its approval for raising Tier I capital through the issuance of equity shares. This capital raise can be executed through various methods, including:

• Rights issue
• Preferential issue
• Private placement
• Qualified institutional placement

The bank may also opt for a combination of these methods, to be implemented in one or more tranches. This decision is subject to shareholder approval, highlighting the bank's commitment to transparent governance.

Increase in Authorised Capital

In a move to support its growth plans, ESAF Small Finance Bank has also approved an increase in its authorised capital. The proposal involves amending Clause V (Capital Clause) of the Bank's Memorandum of Association to raise the authorised capital from Rs. 600.00 crores to Rs. 1,000.00 crores. This significant 66.67% increase is pending approvals from both the Reserve Bank of India (RBI) and the bank's shareholders.

Management Changes

The bank has also announced a forthcoming change in its senior management. George Thomas, currently serving as the Executive Vice President of Human Resources, will be relieved from his responsibilities effective September 30, 2025. This decision comes before the completion of Thomas's contractual tenure and is attributed to personal reasons.

ESAF Small Finance Bank has assured stakeholders that suitable internal arrangements have been made to manage the transition in the Human Resources department.

Regulatory Compliance

In line with regulatory requirements, ESAF Small Finance Bank has made these disclosures under Regulation 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has also confirmed that these announcements are available on its official website for public access.

The Board meeting where these decisions were made commenced at 9:30 A.M. and concluded at 12:15 P.M. on September 20, 2025.

These strategic moves by ESAF Small Finance Bank indicate its focus on strengthening its capital position and preparing for potential expansion opportunities in the evolving banking landscape.

ESAF Small Finance Bank has announced a crucial Board of Directors meeting scheduled for September 20, 2025, to deliberate on raising Tier I Capital. The bank is exploring various avenues to strengthen its capital base, which could potentially reshape its financial structure.

Key Points of the Announcement

• Board Meeting Date: The Board of Directors will convene on Saturday, September 20, 2025.
• Primary Agenda: To consider and approve proposals for raising Tier I Capital.
• Potential Methods: The bank is considering multiple routes for capital raising, including:
  • Private placement
  • Qualified institutions placement
  • Preferential issue
  • Other methods permitted under applicable laws

Regulatory Compliance and Shareholder Approval

ESAF Small Finance Bank has emphasized that any capital raising initiative will be subject to necessary regulatory and statutory approvals. Additionally, the bank plans to seek shareholder consent for the fund-raising proposal. The board will discuss the possibility of:

• Convening an extraordinary general meeting
• Initiating a postal ballot process

These steps are aimed at ensuring full compliance with regulatory requirements and maintaining transparency with shareholders.

Trading Window Closure

In line with the SEBI (Prohibition of Insider Trading) Regulations, 2015, ESAF Small Finance Bank has announced a trading window closure:

• Closure Period: From September 15, 2025, to September 22, 2025
• Affected Parties: Designated persons and their immediate relatives

This measure is implemented to prevent insider trading and maintain market integrity during this sensitive period.

Implications and Outlook

The decision to explore Tier I Capital raising options suggests that ESAF Small Finance Bank is looking to bolster its financial position. Tier I Capital, often referred to as core capital, is crucial for a bank's financial strength and its ability to absorb potential losses.

By considering various methods of capital raising, including private placement and qualified institutions placement, the bank appears to be keeping its options open to find the most beneficial route for strengthening its capital base.

Investors and market watchers will be keenly awaiting the outcome of the September 20 board meeting, as it could significantly impact the bank's future financial strategy and market position.

For more details, stakeholders can refer to the official announcement available on the bank's website at https://www.esafbank.com/investor-relation/?id=disclosure-to-stock-exchanges .