ESAF Small Finance Bank announced Q1FY26 results Profit Metrics: Net Interest Income (NII) reduced to Rs 378 crore compared to Rs 588 crore in Q1FY25 on account of a change in loan mix and an increase in slippage, particularly in the microfinance portfolio. Net Interest Margin (NIM) for Q1FY26 stood at 6.0%. Pre-provision operating profit (PPoP) in Q1FY26 reduced to Rs 125 crore from Rs 254 crore for Q1FY25. Even though the stress level of the unsecured book has moderated, we continue to set aside higher provisions amounting to Rs 234 crore during Q1FY26. On account of the same, we declared a loss of Rs 81 crore against a profit of Rs 63 crore YoY. Business: Total business grew by 4.8% YoY to Rs 42,507 crore in Q1FY26 as against Rs 40,551 crore in Q1FY25. Advances: Gross advances remained stable YoY at Rs 18,224 crore in Q1FY26 as against Rs 18,783 crore in Q1FY25. Total loan book for the quarter stood at Rs 19,809 crore, stable YoY. Of the total loan book, micro assets contribute 46%, gold loans 34%, and others 20%. Disbursements during Q1FY26 stood at Rs 7,694 crore as against Rs 4,503 crore in Q1FY25. Deposits: Total deposits for the quarter stood at Rs 22,698 crore in Q1FY26 compared to Rs 20,887 crore in Q1FY25. Retail deposits stood at Rs 21,763 crore in Q1FY26 as against Rs 19,230 crore in Q1FY25. CASA deposits increased by 14% YoY to Rs 5,628 crore in Q1FY26 compared to Rs 4,927 crore in Q1FY25. CASA ratio improved to 24.8% in Q1FY26 as against 23.6% in Q1FY25. Asset Quality: Provision coverage stood at 73.2% as on 30 June 2025, as against 80.5% in the trailing quarter. Net NPA stood at 3.8%. K. Paul Thomas, MD & CEO of ESAF Small Finance Bank, said: “Our Q1 performance highlights our focus on the secured asset portfolio and the trust our customers place in us, as reflected in the consistent growth of our CASA base. With encouraging signs of revival in the microfinance segment, we remain optimistic about the opportunities ahead. Continued investments in technology will enhance operational efficiency and enrich customer experience, paving the way for sustainable growth. We remain committed to delivering value to all stakeholders while staying true to our mission of financial inclusion.” Result PDF