ESAF Small Finance Bank shares rise over 9% as board approves Rs 735 crore NPA sale to ARC
By Aditya Bhagchandani Published on June 19, 2025, 09:23 IST
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.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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