ESAF Small Finance Bank Stock Price Gains Today After Sale of Bad Loans Worth Rs 735 Crore
By Ankur Chandra | Published at: Jun 19, 2025 11:40 AM IST
Mumbai, June 19, 2025: Shares of ESAF Small Finance Bank Ltd (NSE: ESAFSFB) rallied 8.19% in early trade on Thursday, climbing to ₹2.50, or 8.19%, and were trading at ₹33.02 at around 10:50 AM. The shares rallied after the lender approved the sale of stressed assets worth over ₹735 crore to an Asset Reconstruction Company (ARC), aiming to clean up its loan book.
Stock Performance Snapshot (as of 10:50 AM IST)
| Metric | Value |
|---|---|
| Last Traded Price | ₹33.02 |
| Previous Close | ₹30.52 |
| Day’s Range | ₹32.34 – ₹30.52 |
| 52-Week High / Low | ₹57.00 / ₹24.31 |
| Traded Volume | 51.25 lakh shares |
| Traded Value | ₹16.94 crore |
| VWAP | ₹33.05 |
| Market Cap | ₹1,704 crore |
| Free Float Market Cap | ₹560.40 crore |
ARC Loan Sale Transaction Summary
In a filing dated June 18, 2025, under Regulation 30 of SEBI (LODR) Regulations, 2015, ESAF Small Finance Bank’s board approved the sale of a pool of non-performing and technically written-off assets aggregating to ₹735.18 crore to an ARC.
| Breakdown | Amount (₹ Cr.) |
|---|---|
| Non-Performing Assets (NPA) | 362.43 |
| Technically Written-Off Loans | 372.75 |
| Total Pool Size | 735.18 |
The bank has already provisioned 90.15% against this asset pool, significantly reducing any incremental financial impact. An internal Asset Sale Committee has been authorised to complete procedural formalities.
Order Book Overview
Investor sentiment was clearly positive as reflected in the buy-sell demand dynamics.
| Bid Price (₹) | Quantity | Ask Price (₹) | Quantity |
|---|---|---|---|
| 33.00 | 12,010 | 33.07 | 3,609 |
| 32.99 | 6 | 33.08 | 646 |
| 32.98 | 339 | 33.09 | 7 |
| 32.97 | 1,496 | 33.10 | 191 |
- Total Buy Quantity: 9,37,429 shares
- Total Sell Quantity: 7,92,084 shares
What’s Ahead For Investors?
ESAF’s move to sell ₹735 crore in stressed assets signals a focused effort to clean up its balance sheet, which is expected to improve asset quality metrics going forward. With over 90% of provisions already made, the downside financial risk appears to be limited. The positive market response suggests investor confidence in the bank’s recovery path; however, the sustainability of these gains will depend on future asset quality and credit growth performance.
About ESAF Small Finance Bank
ESAF Small Finance Bank Ltd., listed on November 10, 2023, is a Kerala-based bank that focuses on inclusive banking and microfinance. It operates under the “Other Bank” category and remains active on both BSE and NSE platforms.
The ARC sale decision is viewed by analysts as a proactive balance sheet strengthening measure, which could aid credit quality and capital adequacy in upcoming quarters.
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