The loan pool includes Rs 362.43 crore in non-performing assets (NPAs) and Rs 372.75 crore in technically written-off loans. The bank has already made a 90.15% provision against this pool, indicating limited impact on profitability.
The board has authorized its Asset Sale Committee of Executives to oversee and complete all procedural formalities related to the transaction.
The move is aimed at strengthening the bank’s asset quality and improving overall operational efficiency.
Kerala-based ESAF Small Finance Bank commenced its banking operations in March 2017. It has a network of 787 banking outlets, 1106 customer service centres, 34 institutional business correspondents, 4,405 banking agents, 735 business facilitators and 693 ATMs spread across 26 states and 2 union territories.
The bank reported a standalone net loss of Rs 183.19 crore in Q4 FY25 compared with a net profit of Rs 43.35 crore in Q4 FY24. Total income fell 9.99% YoY to Rs 1,036.78 crore in Q4 FY25.