ESAF Bank Sells ₹1,694 Cr Bad Loans to ARCs for ₹183 Cr; Q2 Deposits Up

• ESAF Small Finance Bank sold its non-performing assets (NPA) and technically written-off loans worth ₹1,693.65 crore to Asset Reconstruction Companies (ARCs).
• The sale was completed on December 29 for an aggregate consideration of ₹183.18 crore, following board approval on December 12, 2025.
• The bank reported a 5.93% YoY growth in total deposits to ₹22,894 crore and a 4.35% YoY increase in gross advances to ₹19,137 crore as of September 30, 2025.
• Secured advances surged by 62.31% to ₹11,711 crore, now comprising 61.20% of total advances, up from 39.34% a year earlier.
• ESAF Bank's customer base reached 97.76 lakh, supported by a network of 788 branches, 718 ATMs, and 1,113 customer service centers across 24 states and two Union Territories.

Why It Matters: ESAF Bank offloaded a large NPA portfolio, improving asset quality while reporting strong deposit and advance growth.