ESAF Small Finance Bank Releases Business Responsibility and Sustainability Report for FY 2025-26

ESAF Small Finance Bank Releases Business Responsibility and Sustainability Report for FY 2025-26​

ESAF Small Finance Bank Ltd. has released its comprehensive Business Responsibility and Sustainability Report (BRSR) covering the Financial Year 2025-26, providing detailed insights into the bank's environmental, social, and governance (ESG) performance. The report highlights the institution's commitment to financial inclusion, operational sustainability, and corporate responsibility across various domains.

Operational Reach and Social Focus

As of March 31, 2026, ESAF Small Finance Bank maintained a significant nationwide presence with 804 retail branches and 35 offices. The bank emphasizes providing access to finance in rural geographies.

The bank's customer base shows a strong focus on financial inclusion. Women constitute a dominant share of the customer base, accounting for 78% of total customers. Furthermore, nearly 12% of its clientele are youth in the age group of 18 to 25 years. The bank serves diverse groups, including small and marginal farmers, micro and nano entrepreneurs, self-help/joint-liability groups, and vulnerable communities like migrant laborers and senior citizens.

Human Capital and Employee Welfare

The bank reported a total workforce of 10,994 employees as at the end of the financial year. Of these, 7,367 are male and 3,627 are female in the permanent employee category. The institution maintains robust systems to ensure human rights compliance and employee well-being.

Key aspects of internal management include:

• Grievance Mechanisms: Both permanent and other than permanent employees have access to grievance redressal via the Employee Grievance Redressal Cell (GRACE), which is designed to be an informal yet structured platform for resolving concerns.
• Compliance: The bank achieved 100% coverage of its premises and offices regarding health and safety practices, as well as working conditions.
• Training: A total of 723 training and awareness programs were conducted for employees other than the Board and Key Management Personnel, with a coverage rate of 95.5%.

Environmental Stewardship and ESG Performance

ESAF Small Finance Bank integrated environmental considerations into its business operations through various measures. The bank’s activities are monitored by M/s SustainEDGE Business Solutions Pvt. Ltd., which conducted a Type 2 Moderate Assurance engagement on the sustainability disclosures.

Key performance indicators (KPIs) related to resources and emissions for FY 2025-26 include:


The bank also reported a commitment to GHG emission reduction, with Total Scope 1 emissions recorded at 97.75 Metric tonnes of CO2 equivalent in FY 2025-26 (down from 46.81 MTCO2e in FY 2024-25).

Governance and Risk Management

The bank structures its governance through the Corporate Social Responsibility and Sustainability Committee of the Board (CSRSCB) and the ESG Management Committee. The BRSR identified several material issues, including the need to integrate ESG criteria into loan approval processes and supporting financial inclusion initiatives.

The commitment to ethical conduct is underscored by strict policies regarding related party transactions (RPTs), which require prior approval from the Audit Committee of the Board, with only Independent Directors reviewing RPTs at the committee level.

Financial and CSR Overview

The bank's financial parameters for the reporting period include a paid-up capital of 51,56,62,613. The company reported that Corporate Social Responsibility (CSR) is applicable, with total turnover amounting to '43,48,23,07,824.57 and net worth at '19,45,01,19,966.00.

Stakeholder Engagement Summary

The bank actively engages with multiple stakeholder groups, including employees, shareholders/investors, customers, vendors, and regulators. For the current financial year, grievance data related to customer complaints showed 10,892 filings, of which 414 remained pending resolution. Complaints from employees numbered 105\\.

ESAFSFB Stock Price Movement​

Today, ESAF Small Finance Bank Limited shares edged higher to close at ₹35.41 after trading today, securing a 1.28% gain. The stock saw robust activity in the session, with 520,577 shares accounted for in total traded volume.