ESAF Small Finance Bank will explore the opportunity to become a universal bank once the listing process is over, said managing director and chief executive officer K Paul Thomas. “Once we do the listing, we will also explore the opportunity to become a universal bank. Even if we become a universal bank, our geographic focus and customer segment will be the same,” he said.
The small finance bank intends to complete its initial public offering in 2023-24 (April-March). It is planning to re-file its draft red herring prospectus (DRHP) in next few months. It had initially filed the draft paper with Sebi in July 2021. While the market regulator had approved the IPO in the same year, the lender could not complete the process within the stipulated timeline.
“We are just starting the process. Our balance sheet will get finalised in the first week of May and we will file (DRHP) after that. We cannot predict anything now, but we want to complete it in FY24,” he said. Given its roots in the microfinance segment, more than 70% of its loan book is exposed towards microfinance borrowers. The lender offers gold loans, agricultural loans, mortgage loans, and loans to micro, small and medium-sized enterprises. Currently, the Thrissur-based bank’s gross loan portfolio stands at 16,330 crore and its deposit base stands at14,665 crore.
The bank expects its loan book and deposit book to grow at a compound annual growth rate of 25-30%. It is focussing on garnering more current account savings account (CASA) deposits going ahead. The lender aims to increase CASA deposits to 30% of overall deposits from 21%.The gross non-performing asset ratio stood at 7.2% as on December 31, and this is expected to fall sharply going ahead.
