ESAF Small Finance Bank Ltd
ABOUT [ edit ]
Incorporated in 1992, ESAF is a Small Finance Bank mainly focusing on providing loans to rural and semi-urban customers.[1]
KEY POINTS [ edit ]
History [1] Promoted by ESAF Financial Holdings Pvt Ltd (“EFHPL”), ESAF Small Finance Bank (“ESAF SFB”) was granted RBI’s Approval to carry on business as an SFB, on November 18, 2016. The “ESAF” brand has been built over more than 27 years, beginning in 1995 when the ESAF Foundation started its microloan activities.
Focus on Rural Areas [1] As of June 30, 2023, their gross advances to their customers in rural and semi-urban centers accounted for 62.97% of advances and 71.71% of the banking outlets.
Product Portfolio
A)Asset Product Portfolio [1]
• Micro Loans, which comprise Microfinance Loans and Other Micro Loans;
• Retail Loans, which includes Gold Loans, Mortgages, Personal Loans, and Vehicle Loans;
• MSME Loans;
• Loans to Financial Institutions; and
• Agricultural Loans.
B) Liability Portfolio [1] Current accounts, savings accounts, term deposits, and recurring deposits.
Key Data Points [2][3]
No. of Outlets – 700
No. of Employees – 5160
Lending Accounts – 0.37 Crs
Deposits Accounts – 0.68 Crs
AUM – 17,203.97 Crs
AUM per Banking Outlet – 24.58 Crs
Deposits – 15,655.85 Crs
Deposits per Banking Outlet – 22.37 Crs
Gross NPA – 1.65%
Net NPA – 0.81%
PCR – 74.35%
AUM Bifurcation [4]
Micro Loans – 75% in FY23 vs 81% in FY22
Retails Loans – 16% in FY23 vs 12% in FY22
MSME Loans – 1% in FY23 vs 1% in FY22
Loans to Financial institutions – 3.5% in FY23 vs 3.5% in FY22
Agricultural Loans – 4% in FY23 vs 2% in FY22
Distribution Network [5] ESAF SFB has a network of 700 banking outlets (including 59 business correspondent-operated banking outlets), 767 customer service centers (which are operated by their business correspondents), 22 business correspondents, 2,116 banking agents, 525 business facilitators and 559 ATMs spread across 21 states and 2 union territories, serving 0.72 crore customers as of June 30, 2023.
Operations managed by Business Correspondents [3] The bank uses business correspondent (BC’s) entities to source and service customers for micro loans, they also source customers for mortgage loans, vehicle loans, MSME loans, agricultural loans and select deposit products. In addition, business correspondents are responsible for sourcing and servicing banking agents and the BC’s sourced or serviced 74.75% of gross advances end June 2023.
Revenue Concentration [6] The business is concentrated in southern region with 62.43% of banking outlets located in South India (including 43.43% in Kerala and 13.86% in Tamil Nadu), 73.09% of gross advances are from customers in South India (including 43.45% from Kerala and 22.14% from Tamil Nadu)
IPO Details [7] Co. intends to raise 463 Crs through the IPO of which 370.9 Crs of fresh issue will be utilised for:
1) Augmentation of the Bank’s Tier-I capital base to meet the Bank’s future capital requirements.
** 2)** Compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time
Last edited 4 months, 3 weeks ago
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