ESAF Small Finance Bank: A Pioneer in Inclusive Banking in India, innovatively serves the underserved and underbanked. Established in 2017, it bridges financial gaps by providing essential banking services and small loans to low-income segments.

History and Growth

Founded in 1992 in Mannuthy, Thrissur, Kerala, by K. Paul Thomas, ESAF began as the Evangelical Social Action Forum NGO. Originally focused on microfinancing through ESAF Microfinance, it evolved into ESAF Small Finance Bank after obtaining a Reserve Bank of India license. Inaugurated by Kerala's Chief Minister, Pinarayi Vijayan on March 17, 2017, it marked Kerala’s first banking license post-independence. From modest beginnings, ESAF expanded across various states, greatly increasing its branches and workforce.

Operations and Financials

Aiming at financial inclusion, ESAF offers a variety of products like savings accounts, loans, insurance, and microfinance. By 2020, ESAF operated over 500 branches in 11 Indian states. Financially robust, it reported a revenue of ₹3,141 crore and net income of ₹302 crore in FY 2023. ESAF’s innovative microfinancing strategy serves customers lacking traditional banking access, such as small business owners, women entrepreneurs, and rural/semi-urban residents.

Achievements and Future Prospects

In December 2018, securing scheduled bank status from RBI further legitimized ESAF, reducing fund costs and facilitating service expansion. With SEBI's IPO approval in March 2020 aiming to raise ₹976 crore, ESAF strengthens its financial foundation, positioning for larger-scale operations.

Conclusion

ESAF Small Finance Bank showcases significant growth by leveraging inclusive banking. Transitioning from a microfinance institute to a full-fledged bank, ESAF addresses unmet banking needs, promising a vital role in India’s bank ecosystem by promoting innovation and inclusivity.