ESAF Small Finance Bankfighting Partiality Of Prosperity

Even when it became a banking institution, the operations are focused on rural India and women:

ESAF Small Finance Bank has made a spectacular performance during FY 2019 when it has recorded a 234% increase in its net profits in its second year of operation. The bank recorded a higher interest income and efficient NPA management. Its profit stood at Rs902.8 million during the year against Rs269.9 million in the previous year. It claims higher asset quality and higher interest returns contributed to the growth of bottom lines. And it hopes to reach the 500 mark in its branch network by 2020. At present, it has 275 branches and operates in 12 states.

In fact , the erstwhile ESAF Microfinance, which became a small finance bank, is the first MFI in Kerala to start lending operations. Also it is the first bank in Kerala to get a banking license after the independence. The microfinance company was founded by K. Paul Thomas with the intention of tackling poverty and unemployment of the educated unemployed youths. It started its operations on the lines of Grameen Bank of Bangladesh, which was set up by Nobel laureate Mohammed Yunus. Its commitment is to holistically help communities struggling with basic issues and empower them through skills training, health services and marketing of their craft, to drive their own future.

The bank is looking to raise capital and different plans like share swap and buy back are being discussed to move ahead. Now a scheduled commercial bank, it can broadbase resource mobilization through the issue of certificate of deposits and inter bank borrowings at competitive rates of interest.

Paul Thomas, who is MD and CEO of the bank now, discusses the bank’s achievements and the strategic plans to reach its target.

Paul Thomas explains the measurement system in the bank to quantify the social impact it has made on the lives of its customers