ESAF Small Finance Bank Limited has successfully completed its monthly interest payment on non-convertible securities, distributing ₹8.12 crores to all concerned investors. The bank filed a compliance certificate with BSE and NSE under Regulation 57 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming the timely completion of its interest payment obligations.

Interest Payment Details

The bank made the interest payment on January 05, 2026, one day after the scheduled due date due to a holiday adjustment. The original due date of January 04, 2026 fell on a holiday, prompting the bank to make the payment on the succeeding business day as per the original terms of issue.

Compliance and Documentation

The certificate was filed pursuant to SEBI Master Circular No. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137 dated October 15, 2025. The bank confirmed that no changes were made to the payment frequency, and there were no delays or non-payment issues reported.

Previous Payment History

The bank's last interest payment on these securities was made on December 04, 2025, maintaining its regular monthly payment schedule. The current payment represents the bank's continued adherence to its debt servicing obligations and regulatory compliance requirements.

Regulatory Disclosure

ESAF Small Finance Bank has made the intimation available on its official website under the investor relations section for transparency and stakeholder access. The bank's Company Secretary and Compliance Officer, Ranjith Raj P, signed the compliance certificate, ensuring proper documentation and regulatory adherence for the interest payment process.

ESAF Small Finance Bank reported robust growth in key operational metrics for the quarter ended December 31, 2025, demonstrating strong momentum in both deposit mobilization and lending activities. The Thrissur-based private lender showcased improved financial positioning through strategic asset quality management and continued business expansion.

Deposit Growth and Composition

The bank's deposit portfolio demonstrated healthy growth across segments during the quarter. Total deposits reached ₹24,006 crore as of December 31, 2025, marking a significant increase from the previous year.

The CASA ratio improvement to 25.12% from 24.95% year-on-year indicates enhanced low-cost funding, though it declined from the previous quarter's 26.41%.

Advances Portfolio and Lending Mix

Gross advances showed strong double-digit growth, reaching ₹20,680 crore as of December 31, 2025, representing a 13.06% year-on-year increase and 8.06% quarter-on-quarter growth. The lending portfolio composition underwent significant transformation during the period.

The shift toward secured advances, including gold loans, mortgage, mobility, MSME and agriculture loans, now represents 63.33% of gross advances compared to 45.33% a year earlier, indicating improved risk management.

Asset Quality Management Actions

The bank undertook comprehensive asset quality improvement measures during 2025. Technical write-offs and sales of non-performing assets totaled ₹1,364 crore for the period from January 1, 2025, to December 31, 2025. Without these actions, advance growth would have been substantially higher at 20.52% year-on-year and 11.05% quarter-on-quarter.

During the quarter specifically, the bank completed transactions involving NPA sales aggregating ₹1,693.65 crore to asset reconstruction companies for total consideration of ₹183.18 crore. Disbursements increased 46.10% on a quarter-on-quarter basis, reflecting strong business momentum.

Network Expansion and Leadership Changes

ESAF Small Finance Bank's operational footprint encompasses a customer base of 99.85 lakh as of December 31, 2025, with 5.71 lakh new customers added during the year. The distribution network includes:

• 788 branches
• 720 ATMs
• 1,045 customer service centres
• Presence across 24 states and two union territories

In a significant leadership development, the bank appointed Karthikeyan Manickam as its new part-time chairman following the retirement of Ravimohan Periyakavil Ramakrishnan, who completed two consecutive terms in the position.

Market Performance

Shares of ESAF Small Finance Bank Limited closed at ₹26.85 on the BSE, gaining ₹0.08 or 0.30% during the trading session, reflecting positive market sentiment toward the bank's operational performance and strategic initiatives.