- ESAF Small Finance Bank reported a net profit of Rs 80.1 crore in June quarter 2026
- Net interest income rose 54.6% year-on-year to Rs 584 crore in the June quarter
- Operating profit nearly tripled to Rs 349 crore compared to last year’s quarter
ESAF Small Finance Bank swung back to profit in the June quarter as net interest income and operating profit rose sharply. The bank also reported an improvement in asset quality, with net NPA easing on a sequential basis despite higher provisions.
NII, Operating Profit Drive Earnings Recovery
The lender reported a net profit of Rs 80.1 crore for the June-quarter, compared with a net loss of Rs 81.2 crore in the corresponding period last year.
Net interest income (NII) climbed 54.6% year-on-year to Rs 584 crore from Rs 378 crore in the year-ago quarter.
Operating profit nearly tripled to Rs 349 crore from Rs 125 crore a year earlier, supporting the bank's return to profitability despite higher provisioning.
Also Read: Intellect Design Q1 Result: Share Price Falls Over 2% As Net Profit Slumps, Revenue Drops Marginally
Asset Quality Shows Improvement
On the asset quality front, gross non-performing assets (Gross NPA) stood at 5.4%, largely stable compared with 5.41% in the previous quarter.
Net NPA improved to 0.83% from 1.77% in the March quarter, indicating a sequential improvement in stressed assets.
The bank set aside provisions of Rs 242 crore during the quarter, compared with Rs 234 crore in the year-ago period and Rs 214 crore in the March quarter, reflecting continued caution toward potential credit risks.
The combination of stronger core income, improved operating performance and better net asset quality helped ESAF Small Finance Bank return to the black in the June quarter, while investors are likely to watch whether the lender can sustain the improvement in asset quality and earnings momentum in the coming quarters.
The lender has scheduled its earnings conference call on Aug. 3, 2026.
“We would like to inform that a conference call for analysts and investors to discuss the results of the Unaudited Standalone Financial Results for the Quarter ended June 30, 2026 is scheduled to be held on Monday, August 3, 2026 at 04:00 P.M (IST),” the company stated in its exchange filing.
Share Price Movement
The stock is up by more than 5% after the company announced the results, currently trading at Rs 38.48 apiece on NSE.
The stock has been rallying since the beginning of 2026, gaining more than 42% in this calendar year.
Also Read: Nifty's Yin And Yang: BofA Sees 8% Downside, 9% Upside In Same Breath
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
