ESAF Small Finance Bank, headquartered in Thrissur, Kerala, has reported a 5.2% year-on-year growth in total business, reaching ₹42,031 crore for the quarter ending September 30, 2025. This growth has been primarily driven by an expansion in secured lending and a notable increase in retail deposits. The bank's gross advances increased to ₹19,137 crore, marking a 4.3% rise from the previous year, while total deposits grew to ₹22,894 crore, reflecting a 5.9% increase year-on-year. This performance indicates the bank's strategic focus on building a robust and diversified portfolio, especially in secured loans.

In terms of specific segments, ESAF reported a dramatic 161% surge in secured loan disbursements, which accounted for 82% of total disbursements during the quarter. The gold loan book experienced significant growth, more than doubling to ₹7,500 crore from ₹3,741 crore a year ago. Meanwhile, the bank's Micro Loan portfolio has shifted, now making up 39% of total advances, down from 61% in the previous year, signaling a strategic move towards a more secured lending mix. Despite these advancements, the bank narrowed its net loss to ₹116 crore, compared to a loss of ₹190 crore in the same quarter last year, showcasing improved operational performance.

ESAF Small Finance Bank also reported a CASA ratio improvement to 26.4%, driven by a 13.7% increase in CASA balances to ₹6,046 crore. The retail share of deposits rose to 96%, demonstrating strong customer trust and stability within the franchise. The bank's Capital Adequacy Ratio stood at a solid 22.4%, with Tier-I capital at 16.9%. With plans to leverage technology for better customer engagement and a commitment to enhancing asset quality, ESAF is poised for sustained growth in the upcoming quarters. Dr. K. Paul Thomas, Managing Director & CEO, emphasized the bank's focus on customer trust and the strategic importance of a diversified, quality-focused lending approach.