ESAF Small Finance Bank reports Q2 FY26 results with strategic loan book shift

ESAF Small Finance Bank's gross advances grew 4.3% year-over-year and 5.0% quarter-over-quarter, reaching ₹19,137 crore by September 2025. The bank saw a strategic shift towards a secured loan book, which now accounts for 61% of total advances, up from 39% in September 2024. Gold loans have more than doubled compared to the previous year, surpassing micro loans in value.

Total deposits increased 5.9% year-over-year to ₹22,894 crore, driven by 13.7% growth in CASA and 3.4% in term deposits. The bank’s CASA ratio stood at 26.4% in Q2 FY26. Total disbursements for H1 FY26 reached ₹16,607 crore, nearly double the previous year, with secured loans constituting over 75% of disbursements for the last four quarters.

The bank's profit after tax for H1 FY26 was ₹(197) crore, with a pre-provision operating profit of ₹218 crore. The capital adequacy ratio (CRAR) was 22.4%, with Tier 1 at 16.9%. GNPA was 8.5% and NNPA was 3.8% in Q2 FY26.