ESAF Small Finance Bank Q3FY26 Results: Deposits Grow 7.10% YoY to ₹24,006 Cr

ESAF Small Finance Bank Limited has announced its Q3FY26 quarterly results under Regulation 30, showcasing continued growth momentum across key financial parameters. The bank has demonstrated strong operational performance with significant expansion in both deposit mobilization and lending activities, reflecting its growing market presence in the small finance banking segment.

Deposit Performance Analysis

The bank's deposit portfolio has shown steady growth trajectory with total deposits reaching ₹24,006.00 crore, marking a 7.10% year-over-year increase. The CASA (Current Account Savings Account) segment performed particularly well, growing by 7.83% YoY to ₹6,030.00 crore. The CASA ratio improved to 25.12% as compared to 24.95% in the previous year, indicating better cost of funds management.

Deposit Category	Q3FY26 (₹ Cr)	Q3FY25 (₹ Cr)	YoY Growth
Term Deposits	17,976.00	16,823.00	+6.85%
CASA	6,030.00	5,592.00	+7.83%
Total Deposits	24,006.00	22,415.00	+7.10%

Advances Portfolio Growth

ESAF Small Finance Bank's gross advances registered robust growth of 13.06% year-over-year to ₹20,680.00 crore. The advances portfolio witnessed a strategic shift with secured advances growing significantly by 57.95% to ₹13,097.00 crore, now constituting 63.33% of total gross advances compared to 45.33% in the previous year. Micro loans decreased by 24.16% to ₹7,583.00 crore, while retail and other loans surged by 57.95%.

Advances Category	Q3FY26 (₹ Cr)	Q3FY25 (₹ Cr)	YoY Growth
Micro Loans	7,583.00	9,999.00	-24.16%
Retail & Other Loans	13,097.00	8,292.00	+57.95%
Gross Advances	20,680.00	18,291.00	+13.06%

Operational Highlights and Strategic Developments

The bank's customer base expanded to 99.85 lakh customers with 5.71 lakh new additions during the year. The distribution network now comprises 788 branches, 720 ATMs, and 1,045 Customer Service Centres across 24 states and 2 union territories. During the quarter, the bank completed NPA sales including technical write-offs amounting to ₹1,693.65 crore to Asset Reconstruction Companies for ₹183.18 crore consideration.

Leadership Changes and Asset Quality Management

The bank appointed Shri. Karthikeyan Manickam as the new Part-Time Chairman following the retirement of Shri. Ravimohan Periyakavil Ramakrishnan. The bank undertook technical write-offs and NPA sales of ₹1,364.00 crore during the period, which impacted the reported growth rates. Without these adjustments, the YoY growth would have been 20.52% for advances.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.59%	+0.92%	+0.73%	-24.71%	-33.25%	-61.88%

ESAF Small Finance Bank announced significant governance developments with the appointment of Karthikeyan Manickam as Chairman and the reconstitution of board sub-committees. The bank disclosed through a regulatory filing that its Board of Directors approved the reconstitution of five board sub-committees effective January 3, 2026.

Leadership Appointment and Background

Manickam brings extensive banking experience to his new role, having previously served as executive director of Bank of India. His comprehensive expertise spans multiple critical areas that will be valuable in steering the bank's strategic direction.

Area of Expertise:	Details
Banking Operations:	Comprehensive operational experience
Risk Management:	Strategic risk assessment and mitigation
Regulatory Compliance:	Banking regulations and compliance frameworks
Human Resources:	Team management and organizational development
Credit Operations:	Monitoring and recovery processes

Board Committee Reconstitution

The bank's board approved the reconstitution of five key committees through a circular resolution passed on January 3, 2026. The newly appointed Chairman Karthikeyan Manickam has been included as a member in three critical committees, reflecting his strategic importance to the organization.

Committee:	Chairman	Key Members
Audit Committee:	Thomas Jacob Kalappila	Kolasseril Chandramohan Ranjani, Ajay Sharma
NRCC Committee:	Prof. Biju Varkkey	Karthikeyan Manickam, Kolasseril Chandramohan Ranjani
Risk Management Committee:	Kolasseril Chandramohan Ranjani	Karthikeyan Manickam, Dr. Kadambelil Paul Thomas
Stakeholders Relationship Committee:	George Ilttan Maramkandathil	Kolasseril Chandramohan Ranjani, Dr. Kadambelil Paul Thomas, Karthikeyan Manickam
CSR & Sustainability Committee:	Ajay Sharma	Dr. Kadambelil Paul Thomas, George Ittan Maramkandathil

Strategic Governance Enhancement

The committee reconstitution demonstrates the bank's commitment to strengthening its governance framework. Manickam's inclusion in the Nomination, Remuneration and Compensation Committee, Risk Management Committee, and Stakeholders Relationship Committee positions him to provide strategic oversight across key operational areas.

Previous Leadership Experience

Manickam's diverse leadership background extends beyond his Bank of India tenure, including board positions at Tamil Nadu Grama Bank, BOI STAR Investment Managers, and serving as Chairman of Star Union Dai-ichi Life Insurance Company. This appointment aligns with ESAF Small Finance Bank's focus on maintaining robust governance practices while pursuing growth opportunities in the competitive small finance banking sector.