ESAF Small Finance Bank Limited (NSE: ESAFSFB, BSE: 544020) has announced that its Board of Directors will meet on Monday, November 3, 2025, to consider and approve a proposal to raise funds through the issuance of Non-Convertible Debentures (NCDs), specifically Tier II Bonds, on a preferential basis through private placement.
According to the company’s filing, the proposed issuance will be undertaken in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, and other applicable provisions under the Companies Act, 2013.
Key details of the announcement
| Particulars | Details |
|---|---|
| Board Meeting Date | November 3, 2025 |
| Purpose | Fundraising via issuance of Non-Convertible Debentures (Tier II Bonds) |
| Mode of Issue | Preferential basis through Private Placement |
| Regulatory Framework | SEBI (NCS) Regulations, 2021; Companies Act, 2013 |
| Within Borrowing Limits | Yes, under Section 180(1)(c) of the Companies Act |
| Earlier Shareholder Approvals | August 14, 2024, and September 24, 2025 |
Strategic context
This move aligns with ESAF Small Finance Bank’s capital adequacy and expansion strategy, as Tier II bonds typically serve as a means to strengthen the bank’s capital base and support credit growth.
The fundraise, once approved, will remain within the existing borrowing limits, as permitted by shareholders in previous general meetings.
About ESAF Small Finance Bank
Headquartered in Kerala, ESAF Small Finance Bank is among India’s leading small finance banks, focusing on financial inclusion and micro, small, and medium enterprise (MSME) lending. The bank serves over 6 million customers across India, emphasizing social impact through responsible banking practices.
The official disclosure is available on the bank’s website: esaf.bank.in .
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