| Metric | Value (₹ Cr) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 894.05 | 9.1% | 5.9% |
| Total Income | 1.2K | 20.6% | 9.6% |
| Expenditure | 910.92 | 4.5% | 2.5% |
| PBT | 9.13 | 105.9% | 103.2% |
| Net Profit | 7.12 | 106.2% | 103.4% |
| OPM | 28.24% | 16.87pp | |
| NPM | 0.61% | 12.61pp | 20.47pp |
| EPS | 0.14 | 93.8% | 103.4% |
ESAF Small Finance Bank Delivers Strong Turnaround in Q3 FY26: MARG Strategy Drives Performance
30 Jan 2026 · 30 Jan, 8:25 pm
Summary
ESAF Small Finance Bank has reported a net profit of ¥7 crore for Q3 FY26, marking a return to profitability and strong growth in its MARG portfolio. The Bank's MARG strategy, representing MSME, Agri, Retail and Gold loans, has driven this performance. 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. Asset quality saw a meaningful turnaround with Gross NPA reducing to 5.6% from 8.5% in the previous quarter and Net NPA declining to 2.7% from 3.8%.
Key Highlights
- 1
Q3 FY26 marks a strong turnaround for ESAF, driven by the successful execution of the MARG strategy
- 2
Sharp improvement in asset quality and return to profitability validates the shift towards a more secure, granular and sustainable portfolio
- 3
Secured assets now accounting for 63% of advances and witnessing strong traction
- 4
Total deposits grew to ¥24,006 crore, up 7% year-on-year
- 5
Retail deposits increased by 8% to $22,426 crore, accounting for 93% of total deposits
- 6
CASA balances rose to =6,030 crore, with the CASA ratio improving to 25.1%
- 7
Bank added nearly 2 lakh new customers during the quarter, taking the total customer base to 99.9 lakh
Management Comments
Dr. K. Paul Thomas
Managing Director & CEO, ESAF Small Finance Bank
Q3 FY26 marks a strong turnaround for ESAF, driven by the successful execution of our MARG strategy—focusing on MSME, Agri, Retail and Gold lending. The sharp improvement in asset quality and return to profitability clearly validates our shift towards a more secure, granular and sustainable portfolio. With secured assets now accounting for 63% of our advances and witnessing strong traction, we are building a resilient balance sheet for long-term growth. Our continued investments in technology, operational efficiency and risk management position us well to deliver consistent performance while staying true to our inclusive banking mission.
Informational and educational content only. Not investment advice.