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ESAF Bank Sells Bad Loans for ₹1,700 Crore
12 Dec
Summary
- ESAF Small Finance Bank approved selling up to ₹1,700 crore in bad loans.
- The asset pool carries a high overall provision coverage of 94%.
- Four directors will retire by December 20, 2025, with committees reconstituted.
ESAF Small Finance Bank announced on Friday that its Board has greenlit the sale of non-performing assets and written-off loans valued at up to ₹1,700 crore. These assets will be transferred to an Asset Reconstruction Company, with the pool currently having an overall provision coverage of 94%. The bank's Asset Sale Committee is authorized to finalize the valuation through the Swiss challenge method.
In parallel developments, the Board also noted the upcoming retirement of four directors. Shri Ajayan Mangalath Gopalakrishnan Nair, Shri Ravi Venkatraman, and Shri Gabriel John Samuel are set to retire effective December 12, 2025. Shri Ravimohan Periyakavil Ramakrishnan will retire as Part-Time Chairman and Independent Director on December 20, 2025.
Further changes include the reconstitution of several critical Board committees, such as the Audit Committee and Risk Management Committee, with these adjustments taking effect from December 13, 2025. The bank confirmed that all necessary disclosures have been uploaded to its website, concluding a board meeting held between 2:00 pm and 4:15 pm.
