ESAF Small Finance Bank Delivers Strong Turnaround in Q3 FY26: MARG Strategy Drives Performance

ESAF Small Finance Bank announced its financial results for the third quarter of FY26, marking a return to profitability, strong growth in its MARG portfolio, and a significant improvement in asset quality. The Bank reported a net profit of ¥7 crore for Q3 FY26, as against a loss of ¥211 crore in the same quarter last year. Total business stood at ¥44,686 crore, registering a year-on-year growth of 10%. Gross advances grew by 13.1% to ¥20,679 crore, while deposits increased by 7.1% to ¥24,006 crore. Secured loan disbursements surged by 149% year-on-year to ¥10,530 crore during the quarter. Asset quality saw a meaningful turnaround during the quarter, with Gross NPA reducing to 5.6% from 8.5% in the previous quarter and Net NPA declining to 2.7% from 3.8%.