Archive · 9 Jan 2026
ESAF Bank Focuses on Secured Loans for Growth
ESAF Small Finance Bank is focusing more on secured loans like gold loans, agriculture loans, and mortgage loans.
They have reduced their unsecured loans to about 35%.
The bank is also offering other financial products like savings accounts, pension plans, and insurance to help people with low and moderate incomes.
They are seeing better collections in the microfinance segment but are concerned about borrowers moving to the informal sector.
The bank is not facing any funding challenges and has seen growth in deposits and retail loans.
ESAF Small Finance Bank is focusing on secured loans for growth, reducing unsecured loans to 30-37%.
The bank's retail and other loans grew 58% to ₹13,097 crore in Q3, with secured loans increasing to 65%.
Microloans book shrunk 24% y-o-y to ₹7,583 crore in Q3, but the bank is expanding other products for the LMI segment.
Deposits grew 7% y-o-y to ₹24,006 crore, with CASA deposits increasing 8% to ₹6,030 crore.
The bank is also promoting savings, pension, and insurance products for the LMI segment.
- Who
- ESAF Small Finance Bank, K Paul Thomas (MD & CEO)
- What
- Shift towards secured loans and financial products for LMI segment
- When
- Current phase of growth, Q3 financials discussed
- Where
- Primarily in rural and semi-urban areas
- Why
- To drive next phase of growth and serve LMI segment better
- Unsecured Loan Share
- 30-37%
- Retail and Other Loans (Q3)
- ₹13,097 crore
- Microloans Book (Q3)
- ₹7,583 crore
- Deposits (Q3)
- ₹24,006 crore
- CASA Deposits (Q3)
- ₹6,030 crore
- Micro Enterprise Loans Range
- ₹1 lakh to ₹10 lakh