ESAF Small Finance Bank has recorded a 28 per cent increase in its operating profit for the year ended March 31. The figure increased from ₹324.70 crore to ₹415.84 crore despite the challenges faced during the year.

Deposits have grown by 28 per cent from ₹7,028 crore to ₹8,999 crore for the year ended March 31, 2021.

The net profit for the year ended March 31 stood at ₹105.40 crore compared to ₹190.39 crore over the same period last year. Further, the bank as a prudent measure holds provision above the RBI requirement in the standard category to the extent of ₹91 crore as of March 31, 2021.

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 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.”

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 per cent and Net NPA by 3.88 per cent, he said.

Gross advances increased by 27 per cent from ₹6,606 crore to ₹8,415 crore, while total business reached ₹17,425 crore, a growth of 26 per cent.

During the year, the bank has raised Tier I capital amounting to ₹162.59 crore by way of a private placement. As on March 31, the bank serves over 43 lakh customers through 550 branches and 308 customer service centres.

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