ESAF Small Finance Bank Ltd

About the Company:

ESAF Small Finance Bank is one of the leading small finance banks in terms of yield on advances, AUM growth rate and share of retail deposits.

Company’s asset products comprise microfinance loans, retail loans and other loans and advances.

Company’s liability products comprise current accounts, savings accounts, fixed deposits and recurring deposits and also serve NRI customers and offer NRE and NRO
saving accounts fixed deposits and recurring deposits.

Further, company also distribute third-party life and general insurance policies, government pension products and point of sales (“POS”) terminals.

Company’s business model focuses on the principles of responsible banking, providing customer-centric products and services through the extensive application of technology.

As at November 30, 2019, company had operations in 16 states and one union territory, 403 Branches, 38 Ultra-Small Branches and has served over 3.73 million customers.


Details of Small Finance banks at the end of Fiscal 2019:


Cost of borrowing for Various Small Finance Banks: 


Management Team:

  1. Mr. Ravimohan Periyakavil Ramakrishnan (Designation: Part-Time Chairman and Independent Director)
  2. Mr. Kadambelil Paul Thomas (Designation: Managing Director and Chief Executive Officer)


Objectives of the Issue:

Offer for Sale.

Each of the Selling Shareholders will be entitled to their respective portion of the proceeds from the Offer for Sale in proportion of the Equity Shares offered by the  respective Selling Shareholders as part of the Offer for Sale. Bank will not receive any proceeds from the Offer for Sale.


Company’s Strengths:

Deep understanding of the microfinance segment, which has enabled company to grow the business outside of Kerala, company’s home state.

  • Company’s deep understanding of the microfinance segment has enabled them to successfully expand the business outside of Kerala.
  • Company’s microfinance loans to customers outside of Kerala have grown from Rs.549.05 crores, representing 37.81% of their total microfinance loans, as at March 31,
    2017, to Rs.25,40.2 crores, representing 48.46% of their total microfinance loans, as at September 30, 2019.


Strong Rural and Semi-urban Banking Franchise.

  • Company has developed an understanding of the rural and semi-urban households in the regions in which theyoperate.
  • In 2019, company had received the SKOCH award for “Providing access and affordable banking services for financially underserved areas” and the “best performance award
    for SHG-Bank linkage” from NABARD.
  • Company’s focus is on providing microfinance loans and Haritha loans (agricultural loans) to customer in rural and semi-urban areas.


Fast growing retail deposit portfolio with low concentration risk.

  • Company has been able to leverage the strength of the “ESAF” brand, which has been built over a period of more than 25 years, to rapidly grow our deposit portfolio since we commenced operations.
  • Company has the highest share of retail deposits as a percentage of our total deposits as compared to other small finance banks.


Percentage wise AUM (Asset Under Management) for Fiscal 2019. 


Future Growth Strategies for the Company:

Expand the Geographic presence and penetrate deeper into existing geographies.

  • Company has operations in 16 states and one union territory. As at November 30, 2019, company had 403 Branches, 38 Ultra-Small Branches, 201 ATMs and 12 business  correspondent entities.
  • Company intends to increase the distribution within the states and operate in and expand the reach to new states by selectively opening additional Branches, ATMs and entering into relationships with new business correspondent entities.
  • Company plans to open Branches in new states and union territories, predominately in North India and North East India. Further, we intend to continue expanding our presence in South India (primarily outside of Kerala).


Increase fee-based income by expanding the third-party Product and service offerings.

  • Company intend to focus on increasing our fee-based income by expanding our third-party product and service offerings.
  • The comission earned on selling of insurance policies and pension plans was Rs.3.79 crores for the six months ended September 30, 2019, which represented 0.52% of the total income.
  • Company began distributing the National Pension System in Fiscal 2019, Atal Pension Yojna in Fiscal 2019, third-party life insurance products116 in Fiscal 2020, third-party general insurance products in Fiscal 2019 and POS terminals in Fiscal 2020.
  • Company plans to distribute mutual funds, provide financial advisory services and other fee-based offerings.


Financials of the Company:

(in Crores) FY 17 FY 18 FY 19 30th Sept 19
Revenue 48.2 698.6 1140.07 728.87
Net Profit 0.76 26.9 90.2 92.4


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
ESAF Small Finance Bank Ltd 10 10 2.37 10.10% 20.89
Ujjivan Small Finance Bank Ltd 10 1.20 43.38 11.23% 10.53
Credit Access Grameen Ltd 10 23.37 34.65 13.60% 164.75
Spandana Sphoorty Financial Ltd 10 53.46 22.29 18.87% 316.84
Bandhan Bank Ltd 10 16.36 31.45 35.79% 27.12


IPO Details:

Details Info
Issue Opens on Will be Updated
Issue Closes on:. Will be Updated
Issue Price Will be Updated
Face Value Rs.10
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior to the Issue 42,77,95,490
Equity Shares after the issue Will be Updated

Also Read : List of Upcoming IPO’s in India.


Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
2.37 Will be Updated 10.10% 20.89



Check IPO Allotment Status:

Link InTime Website (Click on the below Link)



Company Contact Info:
ESAF Small Finance Bank Limited
Building No.VII/83/8
ESAF Bhavan, Thrissur-Palakkad National Highway
Mannuthy, Thrissur 680 651
Kerala, India
Tel: +91 487 7123 907


IPO Registrar Info:
Link Intime India Private Limited
C-101, 1st Floor 247 Park
Lal Bhadur Shastri Marg
Vikhroli (West)
Mumbai – 400 083
Maharashtra, India
Tel: +91 022 4918 6200