ESAF Bank net profit soars 452% in FY23

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Microfinance bank ESAF recorded a 452 per cent increase in net profit to Rs. 302.33 crore for the year ended March 31st. It was Rs. 54.73 crore over the previous year.

Net profit for the quarter was Rs.101.38 crore as against Rs.37.41 crore during the next quarter. Total business (including advances under collection management) increased by 23.22% to Rs. 30,996.89 crore, compared to Rs. 25,155.76 crore in the previous financial year.

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Operating profit for the financial year increased by 81.70% to Rs.893.71 crore from Rs.491.85 crore. Net interest income improved by 60.08% from Rs.1,147.14 crore to Rs.1,836.34 crore.

Deposits increased by 14.44% from Rs.12,815.07 crore to Rs.14,665.63 crore for the year ended 31st March. Total CASA (Current Account, Savings Account) improved by 7.18% from Rs 2,927.40 crore to Rs 3,137.45 crore.

Total advances increased by 16.38 per cent from Rs.12,130.64 crore to Rs.14,118.13 crore as of March 31st. Collection efficiency has improved steadily after the COVID-19 pandemic and field activity has reached near normal.

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K said Paul Thomas, Managing Director and CEO of ESAF Microfinance Bank: “High profits stand testament to the opportunities available as we remain steadfast in our commitment to sustainability. For us, this result is a celebration of the resilience shown by our loan clients. Also, we are pleased to be able to make a meaningful impact It affects the lives of many, especially the underprivileged. As we expand our footprint across India, we will continue to ensure inclusive growth and prosperity for all.”

Total Non-Performing Assets (GNPA) and Net NPA decreased to 2.49 percent and 1.13 percent from 7.83 percent and 3.92 percent, respectively, during fiscal year 2023. The capital to risky assets ratio was 19.83 percent as of March 31, against the limit The minimum requirement of 15 per cent, earnings per share improved from Rs 1.22 to Rs 6.73.