ESAF Small Finance Bank has raised Rs 162 crore as equity through preferential allotment of shares. A total of Rs 2.18 cr shares were allotted preferentially, to certain investors in the HNI category including some existing investors, leading to a dilution of approx. 5%, at Rs 75 per share. The shares were priced at 2.64 times pre-issue, and 2.45 times post issue, of its book value as of September 30, 2020.
“The additional capital raised will strengthen the Capital Adequacy by about 250 basis points and will support our ambitious growth plan set for FY 22. The overwhelming response shown by our investors during these tough times gives us the confidence to aim big. Considering the comfortable capital position and subdued market outlook on BFSI stocks we have decided to postpone the IPO scheduled for the last Financial Year” said K. Paul Thomas, MD & CEO, ESAF Small Finance Bank.
Also, the bank has registered stupendous growth during these challenging times. As per the unaudited results, the bank has achieved a YoY growth of 25.86% in gross business during FY 2020-21. The Bank has reported a 28.04% year-on-year rise in total deposits to Rs 9,000 crore and Advances crossed Rs.8413 crore at a growth of 23.61%, as on 31st March 2021. Total business crossed Rs. 17,412 crore against Rs. 13,835 crore in the year-ago period.
“The results show our commitment to our stakeholders. We are also thankful for the resilience shown by our customers” concluded K. Paul Thomas.
The CASA growth was impressive at 82 percent, thanks to the focused strategies adopted by the bank. The CASA component stood at 19.42% vis-a-vis 13.66% recorded in the previous year. The bank has also opened 96 new outlets during the year ended March 31, 2021, to take the total number of branches to 550.
At present, ESAF Small Finance Bank has a presence in 19 states and two union territories in India with a client base of 4.3 million-plus.