Shares of ESAF Small Finance Bank jumped 9.14% to ₹33.31 in early trade on Wednesday after the bank announced a significant move to offload bad loans. In a filing dated June 18, 2025, the bank said its Board of Directors has approved the sale of non-performing assets (NPAs) and technically written-off accounts amounting to ₹735.18 crore to an Asset Reconstruction Company (ARC).
The asset pool comprises ₹362.43 crore in classified NPAs and ₹372.75 crore in technically written-off loans. ESAF further disclosed that it has already made provisions covering 90.15% of this total exposure, reducing the potential impact on its financials.
The proposal was cleared at a board meeting held between 2:00 PM and 4:00 PM, during which the Asset Sale Committee was authorized to oversee the procedural execution of the transaction.
The bank noted that a separate disclosure will be issued once the sale is completed. The move is part of ESAF’s strategic initiative to clean up its balance sheet and reinforce asset quality.
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