ESAF Small Finance Bank Deposits Rise 7%, Advances Grow 13% in Q3 FY26; Retail Loans Drive Momentum

Thrissur, January 5, 2026 – ESAF Small Finance Bank Ltd (BSE: 544020 | NSE: ESAFSFB) reported steady business growth for the quarter ended December 31, 2025, with deposits rising over 7% year-on-year and advances expanding at a double-digit pace, led by strong traction in retail and secured lending.

Deposit Growth Remains Stable​

The bank’s total deposits stood at ₹24,006 crore as of December 31, 2025, marking a 7.10% year-on-year increase and a 4.86% sequential rise over September 2025.
The CASA ratio improved to 25.12%, compared with 24.95% a year ago, reflecting sustained focus on low-cost deposit mobilisation.

Advances Expand on Retail Shift​

Gross advances increased to ₹20,680 crore, registering a 13.06% year-on-year growth and an 8.06% quarter-on-quarter rise.
The sharp rise in retail and other loans, which include gold loans, mortgage, MSME, agriculture and mobility finance, underpinned the overall growth. Secured advances accounted for 63.33% of total advances, significantly higher than 45.33% in the corresponding period last year, indicating a shift toward a more secured loan mix.

Disbursements, Asset Quality Actions​

During the quarter, disbursements rose 46.1% sequentially, highlighting improved credit demand. The bank also undertook technical write-offs and sale of non-performing assets during the year, including transactions in the quarter involving NPAs with a book value of ₹1,693.65 crore, sold for an aggregate consideration of ₹183.18 crore.

Customer Base and Network Expansion​

As of December 31, 2025, ESAF Small Finance Bank’s customer base stood at 99.85 lakh, with 5.71 lakh new customers added during the year. The distribution network comprised 788 branches, 720 ATMs and 1,045 customer service centres, spread across 24 states and 2 union territories.

Leadership Update​

During the quarter, the bank appointed Karthikeyan Manickam as Part-Time Chairman, following the completion of tenure of the outgoing chairman.

About the Company​

ESAF Small Finance Bank is a scheduled commercial bank focused on financial inclusion, offering a range of retail banking, MSME, and microfinance products. The bank is listed on both BSE and NSE and continues to strengthen its balance sheet through a calibrated shift toward secured and retail-led growth.

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