The ESAF Small Finance Bank Limited recorded an increase of 22.64% on a year-on-year basis with a net profit of ₹129.96 crore for the quarter ended June 30, 2023, compared to a net profit of ₹105.97 crore during the corresponding quarter of the last fiscal year, according to a press release from the bank.
The Bank’s operating profit (which the Bank defines as net profit including provisions and contingencies) grew by 33.46% to ₹300.67 crore from ₹225.29 crore in the corresponding quarter of the previous fiscal year.
The Net Interest Income (NII, which the Bank defines as interest earned minus interest expended), a crucial measure of the Bank’s core operations, increased by 30.46% on a year-on-year basis to ₹585.45 crore for Q1 2023-24 from ₹448.76 crore for the corresponding quarter of the last fiscal year, underscoring ESAF Bank’s prudent lending practices and interest rate management strategies.
ESAF Bank’s business position exhibited its ability to drive robust growth. The total Advances under Management increased by 35.08%, reaching ₹17,203 crore as of June 30, 2023, from ₹12,735 crore as of June 30, 2022, indicating the Bank’s successful expansion of its lending portfolio. The Bank’s Non-Performing Asset position has significantly improved. As of June 30, 2023, the Bank’s GNPA stood at ₹237.61 crore and the NNPA amounted to ₹115.61 crore, reflecting a substantial decrease in comparison with the same period in the previous year when the GNPA stood at ₹734.36 crore and the NNPA amounted to ₹439.42 crore, the press release added.
“We are pleased to announce these positive financial results for Q1 of FY 2023-2024, which reflects our dedication to prudent banking practices and delivering value to our customers. We remain committed to sustainable growth and community development,” said Kadembelil Paul Thomas, the managing director & chief executive officer of ESAF Bank. “With a focus on innovation, growth, and customer-centric solutions, ESAF Bank continues to contribute to the financial ecosystem and drive economic development,” he added.
