ESAF Small Finance Bank Jumps 11% After Board Clears Rs 735-Crore NPA Sale To ARC
Last Updated:
ESAF Small Finance Bank shares surged over 11% on Thursday to hit an intraday high of Rs 33.83 on the BSE
ESAF Small Finance Bank shares surged over 11% on Thursday to hit an intraday high of Rs 33.83 on the BSE, after the Thrissur-based lender announced board approval for a major asset sale. The bank will offload a pool of non-performing and technically written-off loans worth Rs 735.18 crore to an asset reconstruction company (ARC).
The sale includes Rs 362.43 crore in non-performing assets (NPAs) and Rs 372.75 crore in technically written-off accounts. ESAF SFB noted it has provisioning coverage of 90.15% against the total pool. The board has authorised the Asset Sale Committee of Executives to execute the necessary formalities. However, the name of the ARC and detailed terms of the transaction were not disclosed.
In a separate development, ESAF Small Finance Bank also announced a strategic tie-up with Maruti Suzuki India to offer retail financing solutions. The two companies signed a memorandum of understanding (MoU) to finance new and used cars, as well as commercial vehicles. The partnership aims to enhance vehicle ownership opportunities, particularly for first-time buyers in tier-II and tier-III cities, by combining Maruti Suzuki's dealer network with ESAF SFB's lending capabilities.
From a technical perspective, the stock's Relative Strength Index (RSI) stands at 43.8, suggesting it is neither overbought nor oversold. The MACD is positive at 0.7 but remains below the signal line. ESAF shares are trading below their 10-day, 20-day, and 200-day simple moving averages, but above the 50-day and 100-day SMAs.
Over the past three months, the stock has gained around 13.5%, although it remains down 43% over the past year. ESAF Small Finance Bank currently commands a market capitalisation of approximately Rs 1,566.9 crore.
ESAF Small Finance Bank, headquartered in Thrissur, Kerala, is a leading small finance bank in India focused on promoting financial inclusion, especially in rural and underserved areas. Originating as a microfinance NGO in 1992, ESAF transitioned into a full-fledged small finance bank in 2017. With over 770 branches across 24 states and a customer base exceeding 8 million, the bank offers a range of products including retail, MSME, agri, gold, and vehicle loans. Known for its strong rural presence—well above RBI's mandated 25% rural lending threshold—ESAF combines physical outreach with digital services. As of FY25, the bank reported strong deposit growth and maintained a healthy CASA ratio, despite recent asset quality challenges. ESAF is also eyeing future transformation into a universal bank, contingent on improving its asset quality and operational metrics.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
First Published:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
Revanth Reddy urges Centre to clear Rs 24,269cr Hyderabad Metro Phase-2 project, cites urgent need for mass transit; says state ready for joint venture
Telangana Chief Minister A Revanth Reddy urged Union Minister Manohar Lal Khattar to expedite approvals for Hyderabad Metro Phase-2, a 76.4 km expansion. Reddy highlighted the project's importance in easing congestion and promoting sustainable development. HYDERABAD: Telangana chief minister A Revanth Reddy has requested that the Union minister for Urban Affairs, Manohar Lal Khattar , grant the necessary permissions for the proposed Hyderabad Metro Phase-2 project as soon as possible. Revnath met Manohar Lal Khattar at his residence in New Delhi on Thursday and briefed him on the importance of the Hyderabad Metro Rail Phase-2 project. This project involves a 76.4 km extension to the metro network in order to meet the growing demand for public transport in the fast-developing Hyderabad. The CM emphasised that Phase-2 of the metro project would facilitate hassle-free commuting by reducing congestion on the roads, and would also contribute significantly to sustainable development once completed. He also informed the Union minister that the state govt is ready to undertake the Rs 24,269 crore project as a joint venture with the central govt. The CM said that the detailed project report had already been submitted with the necessary amendments in line with suggestions from the union urban development minister, and requested that the necessary permissions be granted by the relevant departments.
Economic Times
25 minutes ago
- Economic Times
HCL Tech shares in focus after partnership with US energy firm Just Energy
Shares of HCL Technologies will be in focus on Friday after the IT major announced a partnership with US-based energy supply company Just Energy to enhance the latter's operations and customer experience. ADVERTISEMENT Under the agreement, HCLTech will deliver digital process outsourcing solutions powered by its generative AI platform to streamline functions across IT, finance, analytics, customer care, sales, and renewals, the company said in a statement. This marks HCLTech's second major deal in the energy sector this week. On Monday, the Noida-based software exporter announced a collaboration with European energy giant to provide cloud and network management services. 'By combining our expertise in GenAI and digital process outsourcing, HCLTech will contribute significantly to Just Energy's innovation strategy and customer satisfaction,' said Ajay Bahl, Chief Growth Officer – Americas, Manufacturing and Allied Industries at company will also deploy its business process optimisation tools and a role-specific, single-user interface platform to improve workforce collaboration and operational workflows at Just Energy.'We are confident that HCLTech's proven expertise and commitment to service excellence will help us achieve our key business objectives related to operational efficiency and service improvements,' said Scott Fordham, Chief Operating Officer at Just Energy. ADVERTISEMENT Also Read: 8 debt-free penny stocks that surged 110-300% in the last 1 year. Do you own any? According to Trendlyne data, the average target price for HCLTech is Rs 1,668, indicating a potential downside of around 3% from current levels. Among the 44 analysts tracking the stock, the consensus rating is 'Hold'. ADVERTISEMENT HCLTech shares closed marginally lower by 0.1% at Rs 1,713.90 on the BSE in Thursday's trade. While the stock has gained 11% over the past three months, it remains down over 10% year-to-date. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
25 minutes ago
- Time of India
ITD Cementation shares in focus after bagging Rs 960 crore orders in Kerala and West Bengal
Shares of ITD Cementation India will be in focus on Friday after the engineering and construction firm announced it has secured two new orders worth approximately Rs 960 crore (excluding GST). The first contract involves executing multiple construction works at Trivandrum International Airport in Kerala, while the second project entails building a multi-storied commercial complex in Kolkata, West Bengal. The company did not disclose the names of the clients or the execution timelines for these projects. Also Read: These 9 Nifty Microcap Index stocks trading below industry PE may rally up to 42% This is the company's second major order in June, following a Rs 893 crore contract awarded last week for the construction of a berth and breakwater for a greenfield captive jetty project in Odisha. ITD Cementation is one of India's oldest engineering and construction firms, with over 90 years of experience across sectors such as maritime structures, mass transit systems, airports, hydroelectric power, tunnels, highways, and water infrastructure. Also Read: 8 debt-free penny stocks that surged 110-300% in the last 1 year. Do you own any? ITD Cementation Q4 earnings For the March 2025 quarter, the company reported a 26.9% year-on-year rise in net profit to Rs 113.55 crore, up from Rs 89.51 crore in the same period last year. Revenue from operations grew 9.8% to Rs 2,479.72 crore, compared with Rs 2,257.72 crore in Q4FY24. ITD Cementation share price target According to Trendlyne, the average target price for ITD Cementation stands at Rs 679, indicating a potential downside of nearly 16% from current levels. Of the three analysts tracking the stock, the consensus rating is 'Buy'. The stock closed 1.3% higher at Rs 810.70 on the BSE on Thursday. It has gained 47% over the past three months and over 70% in the past year. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
