ESAF Small Finance Bank Ltd (ESAFSFB) — Announcement | 2 September 2026

CARE Ratings reaffirmed ESAF Small Finance Bank's Non-Convertible Debenture ratings at CARE A- with Stable outlook, revising the outlook from Negative to Stable. The reaffirmation covers multiple instruments including Lower Tier-II bonds (Basel-II and III) totaling [amount not verified], Tier-II bonds of ₹20 crores, and Certificate of Deposits worth ₹500 crores. The rating action reflects improved asset quality, profitability, and capital adequacy following portfolio restructuring and reduced slippages, with GNPA moderating to 5.40% and NNPA to 0.83% as of June 30, 2026. The bank returned to profitability with ₹80 crore PAT in Q1FY27 after consecutive quarterly losses, supported by a 27% YoY growth in gross advances to ₹23,216 crores and a significant decline in fresh slippages to ₹75 crores in Q1FY27.