ESAF Small Finance Bank reports 28.07% increase in operating profit
Chennai: Kerala based social bank, ESAF Small Finance Bank has recorded a 28.07 % increase in its operating pr ofit for the year ended March 31, 2021. The Operating profit increased from 324.70 crores to 415.84 crores de spite the challenges faced during the year. Deposits grown by 28.04% from Rs. 7028 Crore as at 31 March 2020 to Rs. 8999 Crore for year ended 31 March 2021. Total CASA Improved to Rs. 1748 Crores from Rs. 960 marking a growth of 81.99% over the same period last year. CASA proportion to Deposits also significantly improved fro m 13.55% for the Year ended 31 March 2020 to 19.42% for the year ended 31 March 2021.
The Bank as a prudent measure holds provision in excess of the RBI requirement in the standard category to the extent of Rs. 91 Crore as at 31 March 2021. Accordingly Net Profit of the Bank for the year ended 31 March 20 21 stood at Rs. 105.40 Crore as compared to Rs. 190.39 over 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 improved operating profit and total business in spite of the challenges posed by the pandemic. With t he support of our customers and their faith in us we could also enhance our presence across the country. The re duction in the PAT was mainly due to the higher provisions during the fiscal.”
Gross Advances increased by 27.37% from Rs. 6606 crore to Rs. 8415 Crore while total Business reached Rs 17,425 Crore registering a growth of 25.85% as on 31 March 2021. It was Rs. 13,846 Crore last year.
During the year the Bank has raised Tier I capital amounting to Rs.162.59 Crore by way of private placement. This along with current year profit improved the CRAR by 20 BPS from 24.03% as at 31 March 2020 to 24.23% as at 31 March 2021 despite increase in business.
Due to severe crisis at the Grass root level on impact of the Covid Pandemic, the collection efficiency was adve rsely impacted there by increasing the gross NPA level at 6.70% and Net NPA 3.88% Total CASA Improved by 8 1.99% from Rs. 960 Crore for the year ended 31 March 2020 to Rs. 1748 Crore for the year ended 31 March 20 21. CASA % to Deposits also significantly improved from 13.55% for the Year ended 31 March 2020 to 19.42% for the year ended 31 March 2021.
At present, ESAF Small Finance Bank has presence in 19 states and 2 union territory. As on March 31, 2021, the Bank is serving over 43 lakh customers through 550 branches.
About ESAF Small Finance Bank
We are one of the leading small finance banks in terms of yield on advances, AUM growth rate and share of re ta il deposits. (Source: CRISIL Research Report). Along with our Promoters, we have a history of more than 25 year s of primarily serving the unserved and underserved, with a focus on financial inclusion. Our business model fo cuses on the principles of responsible banking, providing customer-centric products and services through the extensive application of technology
We follow a social business strategy with a triple bottom line approach, emphasising people, the planet and pro sp erity. Our goal is to become one of India’s leading banks in the microfinance sector that offers equal opportu nities through universal financial access and inclusion and livelihood and economic development. Our goal is to become one of India’s leading banks in the microfinance sector that offers equal opportunities through universal financial access and inclusion and livelihood and economic development. We can trace our roots back to 1992, when Kadambelil Paul Thomas, our Managing Director and Chief Executive Officer, along with others, founded ESAF Society, a society focused on the development of microenterprises, community development, and commu nity health development. ESAF Society started its microfinance activities in 1995. In 2006, Kadambelil Paul Tho mas along with others acquired our Corporate Promoter. Thereafter, ESAF Society transferred its microfinance business undertaking to our Corporate Promoter in 2008 pursuant to a business transfer agreement dated Ma rch 31, 2008. Our Corporate Promoter was awarded NBFC-MFI status in 2014. Our Corporate Promoter tran sferred its business undertaking, comprising its lending and financing business, to our Bank on March 10, 2017 pursuant to a Business Transfer Agreement dated February 22, 2017. We commenced our business as a small finance bank on March 10, 2017.
