ESAF Small Finance Bank Q3 Profit Soars to Rs 7 Crore, Reversing Previous Loss

• ESAF Small Finance Bank reported a net profit of Rs 7 crore for Q3 FY26, a significant turnaround from a Rs 211 crore loss in the year-ago period.
• Total income for the quarter increased to Rs 1,163 crore from Rs 1,062 crore, despite a decline in interest income.
• Net Interest Income (NII) rose to Rs 432 crore, and Net Interest Margin (NIM) improved to 6.5 per cent due to a better asset mix and lower cost of funds.
• Asset quality improved, with gross NPA moderating to 5.64 per cent and net NPA easing to 2.73 per cent.
• Managing Director and CEO K Paul Thomas attributed the turnaround to the MARG strategy, focusing on MSME, Agri, Retail, and Gold lending, and a shift towards a more secure portfolio.

Why It Matters: ESAF Small Finance Bank achieved a significant profit turnaround in Q3 FY26, driven by improved asset quality and strategic lending.