Archive · 19 Jun 2025
ESAF SFB Shares Surge After Stressed Asset Sale Announcement
ESAF Small Finance Bank's stock price went up significantly.
This happened because the bank is selling a group of bad loans to another company that specializes in dealing with them.
These bad loans were worth a lot of money.
The bank also reported a loss in the last financial quarter because it had to set aside more money to cover potential losses on loans.
ESAF Small Finance Bank is a scheduled commercial bank that started its operations on March 10, 2017 and went public on November 10, 2023.
ESAF Small Finance Bank's share price jumped over 11% in its biggest intraday gain since February 2024.
The increase followed the bank's announcement of selling a stressed asset pool worth ₹735.18 crore to an ARC.
This asset pool includes ₹362.43 crore in non-performing assets and ₹372.75 crore in technically written-off loans.
The bank reported a net loss of ₹183 crore in Q4 FY25 due to increased provisions.
ESAF SFB went public on November 10, 2023, at a 15.1% premium.
- Who
- ESAF Small Finance Bank.
- What
- ESAF Small Finance Bank share price increased over 11% after announcing the sale of a stressed asset pool.
- When
- The share price increase occurred in Thursday's trading session.
- Where
- The share price increase occurred in the market.
- Why
- The increase was due to the bank's decision to sell a stressed asset pool to an ARC.
- Share Price Increase
- 11.5%
- Current Share Price
- ₹34
- Stressed Asset Pool Value
- ₹735.18 crore
- Net Loss (Q4 FY25)
- ₹183 crore
- NIM
- 8.08%
- Net NPA
- 2.9%
