ESAF Small Finance Bank Faces Financial Challenges Amid Declining Performance Metrics

Mar 05 2025 12:36 PM IST
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ESAF Small Finance Bank has reached a new 52-week low, despite recent gains. The bank's financial health is concerning, with a 0% Capital Adequacy Ratio and a high Cost to Income ratio of 69.81%. Additionally, earnings per share have plummeted significantly over the past year, indicating ongoing challenges.
ESAF Small Finance Bank has experienced significant activity today, reaching a new 52-week low of Rs. 26.1. The stock has outperformed its sector by 0.89% and has shown a consecutive gain over the past two days, rising by 2.63%. However, it remains below key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend.

The bank's financial health raises concerns, particularly with a Capital Adequacy Ratio of 0%, suggesting inadequate buffers against risk-based assets. The Cost to Income ratio stands at a high 69.81%, reflecting inefficiencies in cost management. Over the past year, ESAF Small Finance Bank has reported a staggering decline in earnings per share of -3087.29%, with a net profit after tax of Rs. -210.90 crore, marking a drop of -3092.6%.

Institutional investor participation has also waned, with a decrease of -0.52% in stakes over the last quarter. This trend, combined with the bank's performance metrics, paints a challenging picture for ESAF Small Finance Bank in the current market landscape.
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