ESAF Small Finance Bank to starts operation in Mumbai

Kerala based ESAF Small Finance Bank plans to open its 60th branch on Wednesday, starting operation in Mumbai. The bank expects to receive schedule bank status within two months and has already applied to the regulator. This would give the bank access to inter bank borrowing market and expected to bring down the cost of funds by one per cent.  

The micro lender plans to open 145 new banking outlets by March next year, half of which would be in Kerala. Managing Director and chief executive, K Paul Thomas said that they want to have the pan-India presence.

The bank crossed Rs 1,000 crore of deposits since starting operation in May 2016. The bank’s net worth currently stands at Rs 301 crore. It had a standalone profit of Rs 5.25 crore in the September quarter. The gross non-performing asset ratio currently stands at 4.98 per cent. Thomas said that demonetisation affected them and at that time the ratio was at 7 per cent in November 2016.  

The company’s capital adequacy was at 16.96 per cent as on September 2017.