ESAF SFB shift focus to secured lending after crossing ₹50,000-crore biz

George K. John, Executive Director, ESAF Small Finance Bank

Having surpassed the ₹50,000‑crore total business milestone, the Thrissur‑based ESAF Small Finance Bank is pursuing a balanced, sustainable growth strategy, expanding its focus across the MARG (MSME, Agri, Retail & Gold) secured‑loan portfolio.

George K. John, Executive Director of ESAF Small Finance Bank, noted that reaching ₹50,000 crore in business in just nine years is a major milestone, reflecting the confidence of more than 10 million customers nationwide. He added that this achievement signals the bank’s shift from a mainly micro‑finance lender to a diversified retail bank.

He said, “Our priority is not just size but sustainable, profitable expansion. In the coming years we plan to boost growth in the MARG secured‑asset segment, deepen our deposit base, raise CASA ratios, and deepen digital customer interaction.”

When questioned about expansion, the Executive Director explained that the strategy blends physical footprint with digital strength. ESAF will open selected branches in promising markets while driving tech‑enabled growth, drawing on its wide rural and semi‑urban network.

He stated, “We are executing a major technology overhaul under ESAF 2.0 StratoNeXt – our digital and IT transformation initiative. This involves upgrading the core banking system, revamping CRM tools, enabling digital onboarding, enhancing lending platforms, refining data architecture, and building an API ecosystem.”

According to him, ESAF intends to finish the ESAF 2.0 transformation by Q3 FY27, boosting productivity via streamlined processes, data‑driven decisions, and tech adoption. Simultaneously, the bank is enhancing its balance‑sheet quality by raising the proportion of secured loans and cultivating a deep, diversified deposit base.

Regarding NPA reduction, George John noted that the asset‑quality improvement stems from a disciplined, multi‑faceted approach. Over the past two years, the bank has deliberately increased its exposure to MARG secured‑loan products, thereby sharpening the portfolio’s risk profile.

The bank has also tightened its underwriting standards, upgraded portfolio‑monitoring tools, and deployed data‑driven early‑warning systems to spot stress ahead of time. He added that focused collection and recovery and collection efforts, backed by strict oversight, have significantly improved recoveries and curbed new slip‑ages.

He observed that despite a tough external climate, especially in micro‑finance, the bank’s emphasis on disciplined growth, portfolio diversification, proactive risk control, and solid execution has allowed it to steadily lift asset quality and lay the groundwork for sustainable long‑term growth.

Published on June 25, 2026