ESAF Small Finance Bank reports 28.07% increase in operating profit
Kerala-based social bank, ESAF Small Finance Bank has recorded a 28.07 % increase in its operating profit for the year ended March 31, 2021. The Operating profit increased from 324.70 crores to 415.84 crores despite the challenges faced during the year. Deposits have grown by 28.04% from ` 7028 Crore as at 31 March 2020 to` 8999 Crore for the year ended 31 March 2021. Total CASA improved to ` 1748 Crores from ` 960 Crores marking a growth of 81.99% over the same period last year. CASA proportion to Deposits also significantly improved from 13.55% for the Year ended 31 March 2020 to 19.42% for the year ended 31 March 2021. The Net Profit of the Bank for the year ended 31 March 2021 stood at ` 105.40 Crore as compared to ` 190.39 over the same period last year. Further, the Bank as a prudent measure holds provision in excess of the RBI requirement in the standard category to the extent of ` 91 Crore as at 31 March 2021.
Commenting on the results, K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said “The bank has improved operating profit and total business despite the challenges posed by the pandemic. With the support of our customers and their unwavering faith in us, we could also enhance our presence across the country. The reduction in the PAT was mainly due to the higher provisions during the fiscal.”
Gross Advances increased by 27.37% from ` 6606 crore to ` 8415 Crore while total Business reached ` 17,425 Crore registering a growth of 25.85% as on 31 March 2021. It was ` 13,846 Crore last year.
During the year the Bank has raised Tier I capital amounting to ` 162.59 Crore by way of a private placement. This along with the current year’s profit improved the CRAR by 20 BPS from 24.03% as at 31 March 2020 to 24.23% as at 31 March 2021, despite the increase in business.
Due to a severe crisis at the Grass root level due to the pandemic, the collection efficiency was adversely impacted thereby increasing the gross NPA level at 6.70% and Net NPA by 3.88%.
At present, ESAF Small Finance Bank has a presence in 19 states and 2 union territories. The bank launched 96 branches in the last financial year. As on March 31, 2021, the Bank is serving over 43 lakh customers through 550 branches and 308 Customer Service Centres.