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.

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.

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.

ESAF Small Finance Bank has completed a significant portfolio cleanup by transferring its non-performing assets to asset reconstruction companies. The bank announced that it successfully sold NPAs and technically written-off loans worth ₹1,693.65 crore for an aggregate consideration of ₹183.18 crore.

NPA Portfolio Transfer Details

ESAF Small Finance Bank finalized the transfer of loans with substantial outstanding amounts through the Swiss Challenge Method. The transaction represents a strategic move to clean up the bank's balance sheet and improve asset quality.

Strong Deposit Growth in Q2 Performance

ESAF Small Finance Bank demonstrated robust deposit mobilization during the second quarter, with total deposits reaching ₹22,894.00 crore as of September 30. The bank's CASA deposits showed particularly strong performance, rising 13.67% year-on-year to ₹6,046.00 crore during the same period.

Advances Portfolio Transformation

The bank's lending portfolio showed notable changes in composition, with gross advances increasing 4.35% year-on-year to ₹19,137.00 crore as of September 30. The most significant development was the dramatic shift toward secured lending, with secured advances surging 62.31% to ₹11,711.00 crore.

The secured advances portfolio encompasses gold loans, mortgage, mobility, MSME, and agriculture portfolios. This strategic shift resulted in secured advances representing 61.20% of total advances, a substantial increase from 39.34% in the previous year.

Network Expansion and Customer Base

ESAF Small Finance Bank's distribution network and customer base continued to expand during the quarter. The bank added 1.96 lakh new customers during the quarter, bringing its total customer base to 97.76 lakh as of September 30.