ESAF Small Finance Bank Share Price Surges Over 7% on ₹735 Crore Loan Sale to ARC

ESAF Small Finance Bank has approved the sale of a non-performing and technically written-off loan pool worth ₹735.18 crore to an Asset Reconstruction Company (ARC). The decision was taken during a board meeting held on June 18, 2025.

Details of the Loan Pool

The approved pool consists of 2 components:

• ₹362.43 crore classified as non-performing assets (NPA)
• ₹372.75 crore marked as technically written-off loans

Together, these loans make up the ₹735.18 crore pool being put up for sale. The bank has already made provisions covering 90.15% of the total pool. This means a large portion of the potential loss has been accounted for in earlier financial statements.

Committee Tasked with Execution

An Asset Sale Committee comprising bank executives has been authorised to carry out the procedural steps required to complete the sale. This includes finalising terms with the ARC and managing regulatory or operational processes.

Timeline and Disclosures

The board meeting in which the decision was taken began at 2:00 PM and concluded at 4:00 PM. The outcome was communicated to stock exchanges, BSE and NSE, Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

While the proposal has been approved, the sale process has not yet been completed. The bank has stated that it will provide a further update once the transaction is finalised.

ESAF Small Finance Bank Share Price Performance 

As of 10:41 AM on June 19, 2025, ESAF Small Finance Bank share price was trading at ₹32.97, up 8.03%; the stock is down 15.56% over the past six months and 41.38% over the past year.

Read more: Maruti Suzuki Joins Hands with ESAF Small Finance Bank for Vehicle Loans

Conclusion

This allows ESAF Small Finance Bank to proceed with transferring a significant volume of stressed assets to an ARC. The disclosure has also been made available on the bank’s investor relations website for public access.

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