A 'Triple Bottom Line' Approach For Operations

ESAF Small Finance Bank intends to bring people, planet and profit as part of all its business dealings and the focus will be on inclusive development and not just profit:

ESAF Small Finance Bank, the Thrissur, Kerala-based MFI turned small finance bank has evolved what it describes as the ‘Triple Bottom Line’ approach in its business transactions. On par with the financial bottom line, the bank gives emphasis to social and environment bottom lines. K. Paul Thomas, MD and CEO of the bank explains: “In this ‘Triple Bottom Line’ approach, we focus on 3 Ps - people, planet and profit. With our emphasis on financial inclusion, our branches are connecting well with the captive area - especially with schools, religious institutions and small and micro entrepreneurs. The focus is mainly on inclusive development and not merely on lending money and reaping the rewards. We have in place an environmental policy that mandates promotion of green products. It also emphasizes on clean energy loans that mitigate environmental concerns. We are in the process of introducing ‘Haritha Loans’ which is intended to revive the farming sector.”

He adds that this assertive approach is pervasive in all stages of the bank’s transformation - from a society to an NBFC-MFI and from an MFI to a small finance bank.

BRANCH IN MUMBAI

The bank opened its branch recently in Mumbai as part of its pan-India expansion plan. By March 2018, it intends to open 145 new banking outlets. The Mumbai branch is the 60th branch to be opened. ESAF in fact has a presence in Maharashtra since 2004, with 33 micro banking outlets, especially in the Vidarbha region. Apart from the branches, it has 370 banking outlets in 10 states. It has plans to add more outlets and would soon have a presence in the North East.