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June 19, 2025

ESAF Small Finance Bank shares soar 11% after board approves Rs 735-crore bad loan sale to ARC

Shares of ESAF Small Finance Bank soared 11.3% to an intraday high of Rs 33.83 on BSE on Thursday, after the Thrissur-based lender announced that its board has approved the sale of a pool of non-performing and technically written-off loans worth Rs 735.18 crore to an asset reconstruction company (ARC).The pool comprises Rs 362.43 crore in non-performing assets (NPAs) and Rs 372.75 crore in technically written-off accounts. The bank noted that it has provisioning coverage of 90.15% against the total pool.The board has authorised the Asset Sale Committee of Executives to carry out the necessary formalities to complete the transaction. The name of the ARC and specific terms of the sale were not disclosed.Separately, ESAF Small Finance Bank has entered into a partnership with Maruti Suzuki Ind

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