ESAF Bank to sell NPAs, announces board changes

ESAF Small Finance Bank's Board of Directors has approved the sale of non-performing assets (NPA) and written-off loans to an Asset Reconstruction Company. The total pool size for this sale is up to ₹1700 crores, which includes technical write-off pools, with the bank holding a 94% overall provision on these assets. The Asset Sale Committee of Executives has been authorized to negotiate and finalize the valuation through a Swiss challenge method.

The bank also noted several board retirements effective December 12, 2025. Shri. Ajayan Mangalath Gopalakrishnan Nair retired as a non-executive nominee director, and Shri. Ravi Venkatraman retired as a non-executive independent director. Additionally, Shri. Gabriel John Samuel retired as a non-executive nominee director on the same date. Shri. Ravimohan Periyakavil Ramakrishnan is set to retire as part time chairman and non-executive independent director on December 20, 2025.

In light of these changes, the board approved the reconstitution of its committees, including the Audit Committee, Risk Management Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility and Sustainability Committee, effective December 13, 2025.