Net interest income (NII) rose 19.2% year-on-year to ₹518 crore from ₹434 crore. Net interest margin stood at 6.4%. Pre-provisioning operating profit climbed 166.1% year-on-year to ₹241 crore, while other income increased 39.2% to ₹201 crore.
On an asset quality basis, gross non-performing assets (GNPA) stood at 5.41% compared with 5.64% quarter-on-quarter, while net NPA declined to 1.77% from 2.73% in the previous quarter.
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Total business stood at ₹48,276 crore as of March 31, 2026, up 14.8% year-on-year. Gross advances rose 19.4% to ₹22,426 crore, while deposits increased 11.1% to ₹25,850 crore. The bank made provisions of ₹214 crore towards stressed assets during the quarter.
Secured loan disbursements rose 73.8% year-on-year to ₹10,134 crore during the quarter. Secured assets accounted for 61% of gross advances as of March 31, 2026, compared with 53% a year earlier. Gold loans stood at ₹8,858 crore at the end of the quarter, up 54.5% year-on-year.
The microfinance portfolio stood at ₹8,746 crore in Q4 FY26, compared with ₹8,857 crore a year earlier. Its share in gross advances declined to 39% from 47%. The bank’s capital-to-risk-weighted assets ratio stood at 22.2%, while the cost of funds was 7.1%.
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Total deposits rose to ₹25,850 crore, up 11% year-on-year. Retail deposits increased 9.4% to ₹23,674 crore and accounted for 92% of total deposits. CASA balances stood at ₹6,181 crore, with a CASA ratio at 23.9%.
The bank added nearly 2.3 lakh customers during the quarter, taking its total customer base to 102.2 lakh.
Dr K Paul Thomas, Managing Director and CEO, ESAF Small Finance Bank, said, “Q4 FY26 reflects a continued strengthening of our business with improved profitability and steady progress in asset quality. The successful execution of our MARG strategy—focusing on MSME, Agri, Retail, and gold lending—has accelerated our shift towards a more secure, granular, and sustainable portfolio.
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With secured assets now accounting for over 60% of our advances, we are building a resilient balance sheet for long-term growth. We remain confident that this strategic shift, supported by investments in technology, operational efficiency, and risk management, will continue to drive consistent performance while staying true to our mission.”
Shares of ESAF Small Finance Bank Limited ended at ₹26.39, up by ₹0.52, or 2.01%, on the BSE.
