ESAF Small Finance Bank (ESAFSFB) Earnings Call Transcripts

ESAF Small Finance Bank's Latest Earnings Call - Q4 FY2026

In Q4 FY '26, ESAF Small Finance Bank reported a significant improvement in financial performance, driven by a strategic shift towards secured lending. The bank's gross advances grew by 19% year-over-year to INR 24,426 crores, while total deposits increased by 11% to INR 28,850 crores. Net interest income rose to INR 518 crores, with a net interest margin of 7.3%. Profit after tax for the quarter was INR 24 crores, up from INR 7 crores in the previous quarter. Management maintained guidance for a continued focus on secured lending, targeting 70% secured assets by March 2025, and expects further improvements in asset quality and profitability.

Reported metrics

Guidance from management

The bank maintained its guidance for increasing the share of secured assets to 70% by March 2025. Management expects further improvements in asset quality, margins, and return ratios while maintaining a disciplined growth trajectory.

What management said

Small correction on the secure book, we are going to riding up to 30 percentage not 20%, 70% 30%. We are planning to. And credit costs going forward, if you see the credit cost for the current quarter alone, it is 1.08 and this includes this has some backlog of provisioning on the stock of NPA. So steady-state basis, 2 percentage credit costs is an expected kind of stuff going forward.

Is a futuristic statement, and I'm unable to give you at this moment. But 1 thing which I can tell is that the growth at and that the asset quality programs are almost over. And going forward, we will be on a city kind of growth. That is what is expected.

What analysts pressed on

Analysts expressed concerns about the timeline for achieving steady-state credit costs and ROA targets. Management indicated that a 2% credit cost and 2% ROA are expected by FY '28, with some backlog provisioning continuing into FY '27.

Main topics on the call

• Shift to Secured Lending — The bank increased its secured loan mix to 61% from 63% last year, with a target of 70% by March 2025. This shift is expected to improve asset quality and reduce earnings volatility. Management stated, 'We remain on trac...
• Improvement in Asset Quality — Gross NPA declined to 5.4% from 6.9% year-over-year, and net NPA reduced to 1.8% from 3%. Slippages decreased significantly, reflecting better collection efficiency and disciplined underwriting. Management highlighted, '...
• Profitability and Growth — Profit after tax increased to INR 24 crores from INR 7 crores in Q3, driven by business growth and higher fee income. The bank's advances grew by 19% year-over-year, supported by a strong performance in the secured loan ...
• Liquidity and Funding — The liquidity coverage ratio stood at 13.3%, indicating a comfortable liquidity position. Retail deposits increased to INR 23,670 crores, constituting 92% of total deposits. Management stated, 'Retail deposits increased ...

Read the full ESAF Small Finance Bank transcript (Q4 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 3 ESAF Small Finance Bank earnings call transcripts on record, spanning May 19, 2025 to August 3, 2026. Based on this history, ESAF Small Finance Bank reports semi-annually. The most recent call on file is dated August 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

ESAFSFB

Exchange

NSEI

Country

IN

Sector

Financials

Industry

Banks

Calls on record

3

First call

May 19, 2025

Most recent

August 3, 2026

Reporting cadence

semi-annually