ESAF Small Finance Bank has successfully concluded its postal ballot process with all four proposed resolutions receiving overwhelming shareholder approval. The bank announced the results on December 12, 2025, following the completion of remote e-voting.

Postal Ballot Results Overview

The voting process concluded with strong shareholder participation, as detailed in the scrutinizer's report:

Resolution-wise Voting Results

All four resolutions were passed with requisite majority:

Approved Resolutions

Capital Structure Enhancement: Shareholders approved the increase in authorized share capital from ₹600.00 crore to ₹1,000.00 crore by creating an additional 40 crore equity shares of ₹10.00 each. This move strengthens the bank's capital adequacy position and supports future growth objectives.

Board Appointments: Three key board-level appointments received approval:

1. Karthikeyan Manickam as Non-Executive Independent Director and Part-Time Chairman, effective December 21, 2025, for a three-year term with fixed remuneration of ₹20.00 lakh per annum
2. Ms. Kolasseril Chandramohanan Ranjani re-appointed as Non-Executive Independent Director for another three-year term from December 13, 2025
3. Ajay Sharma appointed as Non-Executive Independent Director for a three-year term starting December 21, 2025

Regulatory Compliance

The postal ballot process was conducted in compliance with Sections 108 and 110 of the Companies Act, 2013, and SEBI Listing Regulations. Pursuant to Section 12(2) of the Banking Regulation Act, 1949, and RBI guidelines, promoter voting rights were restricted to 26% of total voting rights.

The results have been displayed at the bank's registered office, website ( www.esaf.bank.in ), and filed with BSE and NSE. These approved changes position ESAF Small Finance Bank for enhanced governance structure and future growth initiatives.

ESAF Small Finance Bank has reported a significant strategic shift towards secured lending in its Q2 and H1 FY26 earnings call. The bank's total business stood at INR 42,031.00 crores, with secured assets now comprising 61% of gross advances, up from 39% a year ago.

Key Highlights

• Portfolio Transformation: The bank has successfully transitioned its loan portfolio, with secured loans now making up 61% of gross advances, compared to 39% in the previous year.

• Disbursements: Q2 disbursements more than doubled year-on-year to INR 8,913.00 crores, with 82% of new disbursements in secured loans.

• Gold Loans: Gold loans have been a primary driver of growth, with INR 6,500.00 crores disbursed in the current quarter. The gold loan portfolio now stands at approximately INR 8,000.00 crores.

• Microfinance: The bank has reduced its microfinance exposure, which now constitutes 39% of total gross advances, down from 61% last year.

• Asset Quality: Gross Non-Performing Assets (GNPA) marginally increased to 8.5%, while Net NPA remained stable at 3.8%. The provision coverage ratio improved to 74.4%.

• Deposits: Total deposits grew by 6% year-on-year to INR 22,894.00 crores, with retail deposits increasing by 11% to INR 22,082.00 crores.

• CASA Ratio: The Current Account Savings Account (CASA) ratio improved by 180 basis points to 26.4%.

Financial Performance

Strategic Outlook

• The bank aims to achieve a positive quarterly Return on Assets (ROA) in FY26.
• ESAF SFB targets 20-25% loan book growth on a year-on-year basis.
• The bank plans to further reduce its unsecured lending portfolio to 30% by FY27.
• Management expects credit costs to stabilize around 4% on a steady-state basis.

K. Paul Thomas, Managing Director and CEO, commented, "Our dual focus approach of building a sustainable, diversified balance sheet and deepening our social mission have helped us deliver consistent growth and value creation for our stakeholders."

The bank's strategic shift towards secured lending, particularly in gold loans, MSME, and affordable housing, is expected to strengthen asset quality and reduce portfolio concentration. ESAF Small Finance Bank remains focused on improving operational metrics and asset quality while targeting moderate business growth in the coming quarters.

As the bank continues to navigate the evolving financial landscape, it aims to leverage its strong rural and semi-urban presence to capitalize on the growing opportunities in India's underserved segments.