ESAF Small Finance Bank has reported a loss of ₹11.58 crores for the second quarter of the fiscal year 2025, ending September 30, 2025. This loss reflects a significant decline compared to the previous year, where the bank recorded a profit of ₹1.63 crores for the same period. The bank's total income for the quarter was ₹96.5 crores, but it faced total expenditures of ₹87.17 crores, resulting in the negative financial outcome. The statement was released on November 11, 2025, following a board meeting that approved the unaudited standalone financial results.

The financial results also indicate that the bank's interest earned was ₹81.98 crores, while interest expenses amounted to ₹45.58 crores. The operating expenses, which included employee costs and other operational expenditures, totaled ₹41.6 crores. This led to an operating profit before provisions of ₹9.32 crores, but after accounting for provisions and contingencies, the bank experienced the reported loss. The bank's capital adequacy ratio stands at 22.43%, indicating its capacity to absorb losses and meet regulatory requirements.

In addition to the financial disclosures, the board meeting also saw the re-appointment of Ms. Kolasseril Chandramohanan Ranjani as a Non-Executive Independent Director for three years effective from December 13, 2025. Moreover, Shri Ajay Sharma was appointed to the same role starting December 21, 2025. The board acknowledged the retirement of Dr. Joseph Vadakkekara Antony, effective November 17, 2025, and approved the reconstitution of committee structures within the bank. This strategic shift aims to strengthen governance and oversight as the bank navigates its current financial challenges.