ESAF Small Finance Bank has announced that its Board of Directors has approved the sale of non-performing assets (NPAs) and technically written-off loans amounting to ₹735.18 crore to an Asset Reconstruction Company (ARC). This includes ₹362.43 crore classified as NPAs and ₹372.75 crore in technically written-off accounts.
According to the filing made on June 18, 2025, the bank has already made a provision covering 90.15% of the total pool. The decision was taken during a Board meeting held from 2:00 PM to 4:00 PM, and the Asset Sale Committee has been authorized to proceed with completing the procedural formalities.
The bank stated it will issue a separate disclosure once the transaction is finalized. The update aligns with the bank’s broader strategy of balance sheet cleanup and strengthening asset quality.
