Kochi : The Board of Directors of ESAF Small Finance Limited at its meeting, approved the financial results for the quarter ended March 31, 2024

ESAF Small Finance Bank witnessed a rise in Net Interest Income (NII), surging by 18.4% year-on-year to

₹591 Crore, compared to ₹499 Crore in Q4FY23. Additionally, the Pre-provisioning operating profit (PPoP) for Q4FY24 grew by 30.1% year-on-year to ₹285 Crore, showcasing an improvement from ₹219 Crore in Q4FY23. However, the bank has allocated higher provisions, resulting in a Profit After Tax of

₹43 Crore for the quarter, compared to ₹101 Crore in Q4FY23.

In terms of business growth, the bank showcased impressive results, with total business surging by 27.5% year-on-year to ₹39,527 Crore in Q4FY24, compared to ₹30,997 Crore in Q4FY23. Gross advances saw a substantial increase of 33% year-on-year to ₹18,772 Crore in Q4FY24, compared to ₹14,118 Crore in Q4FY23. Advances Under Management for the quarter stood at ₹19,659 Crore, marking a year-on- year growth of 20.4%. Micro Loan segment contributed at 70% to Assets Under Management. Total Disbursements during Q4FY24 stood at ₹5,266 Crore.

Deposits witnessed robust growth, with total deposits growing by 35.5% year-on-year to reach ₹19,868 Crore in Q4FY24, compared to ₹14,666 Crore in Q4FY23. CASA deposits increased by 43.5% year-on- year to ₹4,502 Crore in Q4FY24, compared to ₹3,138 Crore in Q4FY23, resulting in a CASA ratio of 22.7%.

Gross Non-Performing Assets (GNPA) stood at 4.8% in Q4FY24 compared to 2.5% in Q4FY23. Net Non- Performing Assets (NNPA) stood at 2.3% of advances in Q4FY24. The Provision Coverage Ratio (PCR) stood at a healthy 65.2%.

The Return on Asset (ROA) and Return on Equity (ROE) stood at 1.9% and 20.3%, respectively. Furthermore, the Cost of funds for FY24 remained at 7.4%, reflecting a marginal increase of 10 basis points from December Q3FY23, in line with market trends. The Capital Adequacy Ratio (CRAR) stood robust at 23.3%, with Tier I at 19.7% as of March 2024.

Commenting on the performance, Mr. K. Paul Thomas, MD & CEO, said, “The bank’s business is growing at a commendable pace, with a satisfying year-on-year growth of 28%. Technology advancement remains a central focus, driving our efforts to enhance both customer experience and operational efficiency. Through fortified supervisory oversight and strategic initiatives, we are poised to navigate challenges effectively and achieve even better performance in the coming quarters. Meanwhile, we continue our pioneering efforts in the realm of ESG, underscoring our commitment to sustainability.”

Financial Performance( Q4 FY24):

Profit Metrics

•            Net Interest Income (NII) grew 18.4% YoY to ₹ 591 Crore compared to ₹ 499 Crore in Q4FY23

•            Pre-provisioning operating profit (PPoP) for Q4FY24 grew 30.3% YoY to ₹ 285 Crore compared to ₹ 219 Crore in Q4FY23

•            Profit After Tax is at ₹ 43 Crore in Q4FY24 compared to ₹ 101 Crore in Q4FY23

•            The Return on Asset (ROA) and Return on Equity (ROE) stood at 1.9% and 20.3% respectively.

•            Cost of funds for the FY24 was 7.4%, higher by 10 bps on account of increase in the deposit cost in line with the market trend.

•            CRAR was 23.3% and Tier I at 19.7% as at end of March 2024.

Business

•            Total business grew by 27.5% YoY to ₹ 39,527 Crore in Q4FY24 as against ₹ 30,997 Crore in Q4FY23.

Advances

•            Gross advances grew by 33.0% YoY to ₹ 18,772 Crore in Q4FY24 as against ₹ 14,118 Crore

in Q4FY23.

•            Advances Under Management (AUM) for the quarter stood at ₹ 19,659 Crore, up by 20.4% YoY. Of the AUM, Micro Loan and other contributes 81.2%, Retail Loans being 18.8%.

•            Disbursements during Q4FY24 stood at ₹ 5,266 Crore as against ₹ 6,043 Crore in Q4FY23

Deposits

•            The total deposits grew by 35.5% YoY to reach ₹ 19,868 Crore in Q4FY24 compared to

₹ 14,666 Crore in Q4FY23

•            CASA deposits increased by 43.5% YoY to ₹ 4,502 Crore in Q4FY24 compared to ₹ 3,138 Crore

in Q4FY23; CASA ratio stand at 22.7%

Asset Quality

•            Bank’s asset quality stand (GNPA) at 4.8% in Q4FY24 vs 2.5% in Q4FY23.

•            Net NPA stood at 2.3% of the Advances in Q4FY24

•            Provision Coverage Ratio (PCR) stood 65.2%

Financial Performance(FY24):

Profit Metrics

•            The Bank’s Net Interest Income (NII) grew 29.0% YoY to ₹ 2,370 Crore compared to ₹ 1,836

Crore during FY23.

•            Net Interest Margin (NIM) for FY24 stood at 10.7% compared to 10.0% in FY23

•            The Bank’s pre-provisioning operating profit (PPoP) for FY24 increased 30.1% YoY to ₹ 1,163 Crore as compared to ₹ 894 Crore in FY23.

•            The Profit After Tax for FY24 increased by 40.8% YoY to ₹ 426 Crore as compared to ₹ 302 Crore in FY23

Additional Updates

•            The bank’s distribution network stood at 753 branches and 614 ATMs across 23 States and 2 Union Territories. In addition, we have 35 Business Correspondents and 930 Customer Service Centres

Particulate (₹ Cr)	Q4FY24	Q4FY23	Y-o-Y	Q3FY24	Q-o-Q	FY24	FY23	Y-o-Y
Net Interest Income	590.8	498.9	18.4%	597.0	-1.0%	2,369.7	1,836.3	29.0%
Net Total Income	740.6	592.9	24.9%	716.9	3.3%	2,811.5	2,124.3	32.4%
Operating Expense	455.9	374.4	21.8%	429.2	17.9%	1,648.8	1,230.5	34.0%
Pre-Provision Operating Profit	284.7	218.5	30.3%	287.7	-18.4%	1,162.7	893.7	30.1%
Profit before tax	58.5	136.2	-57.0%	149.9	-94.3%	570.4	406.0	40.5%
Profit After Tax	43.4	101.4	-57.2%	112.1	-105.9%	425.6	302.3	40.8%