ESAF Small Finance Bank Reports Strong Growth in Secured Assets and Gold Loan Portfolio

ESAF Small Finance Bank announced its financial results for the fourth quarter and full year of FY 2025, highlighting a robust growth trajectory in secured lending, a near doubling of the gold loan portfolio, and strong CASA deposit mobilization. The bank's strategic pivot towards a more secured and diversified loan mix resulted in secured loan disbursements surging to 75,832 crore in Q4 FY25 from 2,187 crore in Q4 FY24. The Gold Loan segment emerged as a key growth driver, registering a YOY growth of 98%. CASA deposits recorded strong momentum, increasing 28% YoY to 5,783 crore in Q4 FY25 from €4,502 crore a year earlier. Despite the overall progress, the bank faced macro-level stress primarily in its legacy microloan portfolio. ESAF Bank proactively strengthened its balance sheet by setting aside 332 crore in provisions during Q4 FY25, including 131 crore over and above the policy norm. This elevated the Provision Coverage Ratio (PCR) to 80.5%, a key indicator of resilience.