ESAF Small Finance Bank Announces Key Board Changes

ESAF Small Finance Bank has approved significant changes to its Board of Directors, including new appointments and a retirement.

New Independent Director Appointed

The bank's Board has approved the appointment of Shri Ajay Sharma as a Non-Executive Independent Director for a three-year term from December 21, 2025 to December 20, 2028, subject to shareholder approval. Sharma brings over 35 years of banking experience from IDBI Bank, where he served as Chief Financial Officer and Executive Director of Human Resources & Training. His expertise spans corporate finance, retail banking, risk management, and microfinance lending.

Director Re-appointed

Smt. Kolasseril Chandramohanan Ranjani has been re-appointed as a Non-Executive Independent Director for another three-year term from December 13, 2025 to December 12, 2028, pending shareholder approval. Ranjani holds an MBM degree and has over 25 years of experience in the MSME sector, having served on boards of various microfinance institutions.

Director Retirement

Dr. Joseph Vadakkekara Antony will retire as Non-Executive Director effective November 17, 2025.

Board Committee Changes

Following these changes, ESAF Small Finance Bank has reconstituted several Board committees effective November 12, 2025:

The Nomination, Remuneration and Compensation Committee will now be chaired by Shri Biju Varkkey.
Smt. Kolasseril Chandramohanan Ranjani will chair the Stakeholders Relationship Committee.
The Corporate Social Responsibility and Sustainability Committee will be led by Shri Gabriel John Samuel.

These board changes aim to strengthen ESAF Small Finance Bank's governance and leadership as it continues to grow its operations. The new appointments bring additional banking and financial sector expertise to guide the bank's strategic direction.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.74%	-1.97%	-4.91%	-13.57%	-30.99%	-60.98%

ESAF Small Finance Bank , a prominent player in the Indian banking sector, has reported its financial results for the second quarter, showing a mixed performance with improvements in some areas and challenges in others.

Narrowed Losses

The bank reported a net loss of 11.58 billion rupees for Q2, a significant improvement from the 19.01 billion rupee loss in the same period last year. This reduction in losses indicates the bank's efforts to streamline operations and manage costs more effectively.

Revenue and Operational Performance

Despite the narrowed losses, ESAF Small Finance Bank faced a decline in revenue:

Metric	Q2 Current	Q2 Previous	YoY Change
Revenue	82.00	99.50	-17.60%
Interest Earned	82.00	99.50	-17.60%
Other Income	14.50	9.80	+48.00%

All figures in billion rupees

The decline in revenue was primarily due to a decrease in interest earned, which fell from 99.50 billion rupees to 82.00 billion rupees year-over-year. However, the bank saw a significant increase in other income, rising from 9.80 billion rupees to 14.50 billion rupees.

Asset Quality

The bank's asset quality showed some deterioration:

Metric	Q2	Q1
Gross NPA Ratio	8.54%	7.48%
Net NPA Ratio	3.83%	3.77%

The increase in both gross and net NPA ratios indicates growing stress in the bank's loan portfolio, which may require closer monitoring and potentially increased provisioning in the coming quarters.

Capital Adequacy and Liquidity

ESAF Small Finance Bank maintained a strong capital position:

Capital Adequacy Ratio (Basel II): 22.43%, well above regulatory requirements
Net Worth: 174.85 billion rupees

Operational Highlights

The bank raised Tier II capital of 1.15 billion rupees during the quarter, strengthening its capital base.
Employee stock options resulted in the allotment of 85,883 equity shares during the half-year ended September 30.

Management Changes

The bank announced several changes to its board of directors:

Re-appointment of Ms. Kolasseril Chandramohanan Ranjani as Non-Executive Independent Director for a three-year term.
Appointment of Shri. Ajay Sharma as Non-Executive Independent Director for a three-year term.
Retirement of Dr. Joseph Vadakkekara Antony as Non-Executive Director.

These changes aim to bring fresh perspectives and expertise to the bank's governance structure.

Outlook

While ESAF Small Finance Bank has shown improvement in reducing its losses, the decline in revenue and deteriorating asset quality present challenges. The bank's focus on strengthening its capital base and governance structure may help in navigating these challenges. Investors and stakeholders will likely keep a close eye on the bank's strategies to boost revenue and manage asset quality in the coming quarters.