ESAF Small Finance Bank to raise ₹135 crore via issuance of tier-II bonds

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The Board of Directors of ESAF Small Finance Bank approved a proposal to raise funds by way of issuance of Basel-II compliant lower tier-II subordinated bonds in the form of non-convertible debentures (tier-II bonds) aggregating up to ₹135 crores on a private placement basis.

The NCDs will be listed, rated, taxable, unsecured, transferable, redeemable, and fully paid-up, per the Thrissur (Kerala) headquartered bank’s regulatory filing.

In the third quarter ended December 31, 2023, the bank’s deposits were up 40.6 per cent year-on-year (y-o-y) to ₹18,860 crore. Advances under management (comprising 72.2 per cent micro loans and balance ‘retail & other loans’) rose 35.9 per cent to ₹18,149 crore.

Net profit almost tripled to ₹112.1 crore against ₹37.4 crore in the year ago quarter. As at December-end 2023, the bank had 731 banking outlets and 600 ATMs spread across 21 States and 2 Union Territories.