ESAF Small Finance shares rise 3% on sale of NPAs worth ₹733 crore to ARC

ESAF Small Finance Bank shares rose 3 per cent on Tuesday after it completed the sale of non-performing assets (NPAs) and technically written-off loans

Shares of ESAF Small Finance Bank rose over 3 per cent on Tuesday after it completed the sale of non-performing assets (NPAs) and technically written-off loans, worth ₹733.4 crore. 

 

ESAF Small Finance Bank's stock rose as much as 3.55 per cent during the day to ₹33.51 per share. The stock pared gains to trade 0.8 per cent higher at ₹32.7 apiece, compared to a 0.08 per cent advance in Nifty 50 as of 10:38 AM. 

 

Shares of the company saw their steepest intraday gain since June 23 last year. The counter has fallen 22.6 per cent this year, compared to an 8.2 per cent advance in the benchmark Nifty 50. ESAF Small Finance Bank has a total market capitalisation of ₹1,675.65 crore.  Track LIVE Stock Market Updates Here

ESAF Small Finance Bank completes sale of NPA

In an exchange filing on Monday, the small-cap lender said that it completed the sale of NPAs to an Asset Reconstruction Company (ARC).  

 

Upon conclusion of the Swiss Challenge Method, the bank has transferred the said portfolio, with an outstanding of ₹733.40 crore, to an ARC, for a consideration amounting to ₹73.34 crore, the statement said. 

 

Last month, the lender said that its board had approved the sale of ₹735 crore worth of non-performing and written-off loans to ARCs. 

 

Of the ₹735 crore, ₹362.43 crore are non-performing loans, while ₹372.75 crore are technically written-off loans. The bank said it is carrying an overall provision of 90.15 per cent against these assets, it said in the statement.  

ESAF Small Finance Bank Q4 results

ESAF Small Finance Bank reported a net loss of ₹183.19 crore for the quarter ended March 2025, compared with a net profit of ₹43.35 crore in the corresponding quarter of the previous year. Total operating income declined by 10.83 per cent to ₹893.44 crore in the March 2025 quarter, from ₹1,002.00 crore in the March 2024 quarter.

About ESAF SFB

The Bank received a license to carry on business as an SFB from the Reserve Bank of India (RBI) on November 18 2016, and commenced its banking operations from 10 March 2017. As per RBI approval, the bank became a Schedule Bank effective from November 12 2018, which was included in the Second Schedule to the Reserve Bank of India Act 1934.