ESAF Small Finance Bank jumps after returning to profit in Q1, asset quality improves

ESAF Small Finance Bank jumps after returning to profit in Q1, asset quality improves


Shares of ESAF Small Finance Bank jumped as much as 10% on Friday, July 31, after the company returned to profitability in the June quarter, reporting a standalone net profit of ₹80.1 crore compared with a net loss of ₹81.2 crore in the year-ago period, supported by strong growth in net interest income and an improvement in asset quality.

Net Interest Income (NII) rose 54.7% year-on-year to ₹584.3 crore from ₹377.6 crore. Total income increased to ₹1,346 crore from ₹1,023.4 crore a year earlier, while operating profit before provisions and contingencies nearly tripled to ₹349 crore from ₹124.9 crore. Profit before tax stood at ₹107 crore, compared with a pre-tax loss of ₹109.2 crore in the corresponding quarter last year.

The bank’s asset quality improved sequentially, with the gross non-performing asset (GNPA) ratio easing to 5.40% from 5.41% in the March quarter. The net NPA ratio declined sharply to 0.83% from 1.77% in the preceding quarter. On a year-on-year basis, GNPA improved from 7.48%, while net NPA nearly halved from 3.77%.

Also read: Divi’s Labs’ share price target raised by 36% by Macquarie; First target above ₹10,000

Capital adequacy under Basel II improved to 23.86% from 22.22% in the previous quarter. During the quarter, the bank raised ₹85 crore through Tier II bonds and allotted 2.89 lakh equity shares under its employee stock option scheme.

Shares of the company jumped 10% following the results, but have pared some gains since and were trading at ₹38.43, up 5.35% as of 1.31 pm. The stock has gained 42% so far in 2026.

Also Read: GMDC Q1 Results: Profit flat despite 22% revenue growth; Explores collaboration with IREL



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *