Kochi: ESAF Small Finance Bank Limited, one of the leading small finance banks in India in terms of yield on advances, AUM growth rate and share of retail deposits (Source: CRISIL Research Report), has posted a 41.09% jump in net profit to Rs 130.42 cr for the half-year ended 30 September 2020, as against Rs.92.44. crore posted in the same period last year.

Commenting on the results, K Paul Thomas, managing director and CEO of ESAF Small Finance Bank, said, “The bank has performed well during the period and I believe the results show that the micro-entrepreneurs are in a recovery mode after the COVID-19 pandemic induced slow down, indicating a positive sign for the economy altogether.”

The total business during the period increased by 35.06% to Rs.15,582 cr. The deposits increase by 35.38% to Rs 8,208 crore and advances increased by 34.70% to Rs 7374 cr. Gross NPAs as a percentage of gross advances decreased from 1.76% as at 30 September 2019  to 1.32% as at September 30, 2020 and  net NPAs as a percentage of net advances reduced from 0.62% as at 30 September 2019 to 0.19% as at 30 September 2020.

The provision coverage ratio improved to 93.45% as at September 30, 2020 from 81.53% as at 30 September 2019. The CRAR was 24.29% with Tier I CRAR of 21.10% as at 30 September 2020, as against a regulatory requirement of 15% and 7.50%, respectively.

On the impact of COVID-19, K Paul Thomas said, “The bank’s customers have shown immense resilience in the face of adversity. I believe the bank has taken suitable steps and sufficient safeguards to support the customers to tide over the crisis and bring them back to normalcy.”

He expressed his gratitude for the hard work and commitment of the employees in the face of the pandemic. The bank opened 29 branches during the half-year ended 30 September 2020, giving it a total of 483 branches across 19 states and two Union Territories.