Tag: esaf small finance bank

ESAF Bank launches electric vehicle loan scheme ‘Go green’

Banking & Finance

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The Thrissur-based ESAF Small Finance Bank Limited has announced the latest “ESAF Go Green” range of electric vehicle loan schemes. The launch coincides with COP26.

“ESAF Go green” loans validate ESAF Small Finance Bank’s social business strategy seeking a triple bottom line impact; people; planet; and prosperity. We believe that these products will help the customers discover the eco-friendly electric vehicles at low-interest rate, zero foreclosure charges, minimal processing fee and zero documentation charges.” ESAF Small Finance bank said in a statement.

Also read: ESAF Bank join hands with Nabard for local economic development

The government and local bodies have introduced concessions and incentives to increase the use of electric vehicles which are beneficial to consumers and the environment. The government had also given special consideration in the budget to promote the use of electric vehicles. ESAF Small Finance Bank caters to more than 46 lakhs customers through its 550 banking outlets across 21 States and two UTs.

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ESAF Small Finance Bank, Anand Rathi Wealth among 7 cos to get Sebi’s nod for IPO, BFSI News, ET BFSI

Personal Finance

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New Delhi, As many as seven companies, including ESAF Small Finance Bank, Sapphire Foods India and Anand Rathi Wealth, have received capital markets regulator Sebi‘s nod to raise funds through initial public offerings (IPOs). In addition, PB Fintech, which operates an online insurance platform Policybazaar and credit comparison portal Paisabazaar, Paytm‘s parent firm One97 Communications, life sciences company Tarsons Products and HP Adhesives too received Sebi’s clearance to float their IPOs.

These companies, which filed their draft papers with Sebi between July and August, obtained the regulator’s observations during October 18-22, an update with Sebi showed on Monday.

In Sebi’s parlance, the issuance of observation is equivalent to the regulator’s approval.

ESAF Small Finance Bank’s Rs 997.78-crore public issue comprises a fresh issue of equity shares worth Rs 800 crore and an offer for sale of Rs 197.78 crore by existing shareholders, according to draft red herring prospectus (DRHP).

Under the offer for sale, the promoter will be selling shares worth Rs 150 crore, PNB MetLife would offload shares to the tune of Rs 21.33 crore, Bajaj Allianz Life will offer shares of Rs 17.46 crore, PI Ventures will sell Rs 8.73 crore worth shares and John Chakola will offer shares worth Rs 26 lakh.

The IPO of Sapphire Foods India Ltd, which operates KFC and Pizza Hut outlets, will be entirely an offer of sale (OFS) of 17,569,941 equity shares by promoters and existing shareholders.

As a part of the OFS, QSR Management Trust will sell 8.50 lakh shares, Sapphire Foods Mauritius Ltd will offload 55.69 lakh shares, WWD Ruby Ltd will divest 48.46 lakh shares and Amethyst will offer 39.62 lakh shares.

In addition, AAJV Investment Trust will sell 80,169 shares, Edelweiss Crossover Opportunities Fund will offload 16.15 lakh shares and Edelweiss Crossover Opportunities Fund-Series II will divest 6.46 lakh shares.

The initial share-sale of Anand Rathi Wealth Ltd, part of Mumbai-based financial services group Anand Rathi, is completely an offer for sale of 1.2 crore equity shares by promoters and existing shareholders.

Those offering shares in the offer for sale are — Anand Rathi Financial Services Limited, Anand Rathi, Pradeep Gupta, Amit Rathi, Priti Gupta, Supriya Rathi, Rawal Family Trust, Jugal Mantri and Feroze Azee.

According to the draft papers, Paytm plans to raise Rs 8,300 crore through fresh issue of equity shares and another Rs 8,300 crore through the offer-for-sale route.

Paytm founder, managing director and chief executive Vijay Shekhar Sharma and Alibaba group firms will dilute some of their stake in the proposed offer-for-sale.

In addition, investors selling stake include Antfin (Netherlands) Holding BV, Alibaba.Com Singapore E-Commerce Private Ltd, Elevation Capital V FII Holdings Ltd, Elevation Capital V Ltd, SAIF III Mauritius Company Ltd, SAIF Partners India IV Ltd, SVF Panther (Cayman) Ltd and BH International Holdings.

The Rs 6,017.50 crore IPO of PB Fintech comprises a fresh issue of Rs 3,750 crore worth of equity shares and an offer for sale of Rs 2,267.50 crore by existing shareholders.

As part of the OFS, SVF Python II (Cayman) will sell shares worth Rs 1,875 crore, Yashish Dahiya will offer shares worth Rs 250 crore and some other selling shareholders will also divest shares.

Tarsons Products’ IPO comprises fresh issuance of equity shares worth Rs 150 crore and an offer for sale of 1.32 crore equity shares by promoters and an investor.

As a part of the OFS, promoters — Sanjive Sehgal will offload up to 3.9 lakh equity shares and Rohan Sehgal will sell up to 3.1 lakh equity shares — and investor Clear Vision Investment Holdings Pte Ltd will divest up to 1.25 crore equity shares.

HP Adhesives’ initial share-sale consists of fresh issuance of 41.40 lakh equity shares and an offer of sale of 4,57,200 equity shares by promoter Anjana Haresh Motwani.

The company manufactures a wide range of consumer adhesives and sealants products such as PVC, solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant.

The shares of these companies will be listed on the BSE and NSE. PTI SP BAL BAL



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ESAF Small Finance Bank files DRHP with SEBI for IPO

Banking & Finance

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ESAF Small Finance Bank has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The initial public offering comprises fresh issue of ₹8 billion worth of ESAF Small Finance Bank shares, and an offer for sale of ₹2 billion worth of shares by its promoters. The offer includes a reservation for subscription by eligible employees, of up to 5 per cent of the company’s post-offer paid-up equity share capital.

Also read: ESAF Small Finance Bank’s operating profit up by 28% in FY21

The company may also consider issuing equity shares on a private placement basis for cash consideration, aggregating up to ₹3 billion as the pre-IPO placement, according to the draft prospectus.

In April, ESAF Small Finance Bank raised ₹1.62 billion through preferential allotment of 21.8 million equity shares at ₹75, leading to a dilution of around 5 per cent stake.

As on March 31, the bank’s total deposits grew 28.04 per cent year-on-year to ₹90 billion, and advances rose 23.61 per cent to ₹84.13 billion. The current savings account ratio stood at 19.42 per cent compared with 13.66 per cent a year ago.

Also read: ESAF Small Finance Bank raises ₹162 crore through preferential allotment

Axis Capital Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd, and IIFL Securities Ltd are book-running lead managers to the issue.

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ESAF Small Finance Bank’s operating profit up by 28% in FY21

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ESAF Small Finance Bank has recorded a 28 per cent increase in its operating profit for the year ended March 31. The figure increased from ₹324.70 crore to ₹415.84 crore despite the challenges faced during the year.

Deposits have grown by 28 per cent from ₹7,028 crore to ₹8,999 crore for the year ended March 31, 2021.

The net profit for the year ended March 31 stood at ₹105.40 crore compared to ₹190.39 crore over the same period last year. Further, the bank as a prudent measure holds provision above the RBI requirement in the standard category to the extent of ₹91 crore as of March 31, 2021.

K Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, said, “The bank has improved operating profit and total business despite the challenges posed by the pandemic. With the support of customers and their unwavering faith in us, we could also enhance our presence across the country. The reduction in the PAT was mainly due to the higher provisions during the fiscal.”

Due to a severe crisis at the grass-root level due to the pandemic, the collection efficiency was adversely impacted thereby increasing the gross NPA level at 6.70 per cent and Net NPA by 3.88 per cent, he said.

Gross advances increased by 27 per cent from ₹6,606 crore to ₹8,415 crore, while total business reached ₹17,425 crore, a growth of 26 per cent.

During the year, the bank has raised Tier I capital amounting to ₹162.59 crore by way of a private placement. As on March 31, the bank serves over 43 lakh customers through 550 branches and 308 customer service centres.

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Bankers, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: Bankers on Wednesday welcomed the measures announced by RBI as a nuanced attempt to address not just economic concerns but public health issues as well.

SBI Chairman Dinesh Kumar Khara said the unscheduled statement from Governor Shaktikanta Das has targeted moves to alleviate the troubles faced by multiple sectors.

“…the series of measures announced today reflect a novel approach. The decision to create a dedicated Rs 50,000 crore fund for ramping up Covid related healthcare infrastructure reflects RBI’s commitment to transcend boundaries by addressing not only economic health but also public health,” he said in a statement.

He also appreciated the decision to augment the lending firepower of small finance banks (SFBs) through priority sector tag, restructuring framework for individuals and small businesses, cash reserve ratio flexibility for lending to SMEs and the measures to help the state governments through ways and means advances relaxations.

MFIN, a self-regulatory organisation of micro-lenders, was very appreciative of the attempt to infuse liquidity for small MFIs by classifying and recognising SFBs’ lending to smaller NBFC-MFIs as priority sector lending.

The body’s chief executive Alok Misra said Das had met sector representatives looking at the “severity of the situation” and followed it up with the steps on Wednesday.

From the non-bank lenders, Mahindra Finance‘s Managing Director and Vice Chairman Ramesh Iyer said the measures aimed at individuals, small businesses and micro borrowers are a timely move, and welcomed the restructuring proposals.

“It’s (restructuring) an important announcement looking at the present economic landscape, this will provide as an impetus for businesses to recover from COVID-19 pandemic blues,” he said, adding that the moves to rationalise certain components of the extant KYC (know your customer) norms will support financial institutions to operate in a more efficient way.

Paul K Thomas, who heads the ESAF Small Finance Bank, said the RBI’s core focus on small lending and the last-mile delivery of credit to individuals and small businesses and the schemes to boost the provision of immediate liquidity to SFBs will go a long way in expediting economic recovery.

SFBs will now be permitted to give fresh lending to smaller micro-finance institutions (MFIs) with asset size of up to Rs 500 crore for on-lending to individual borrowers as priority sector lending.

This will add impetus to the SFBs who have been consistently playing a prominent role by acting as a conduit for the last-mile delivery of credit to individuals and small businesses, he said.

Private sector lender Kotak Mahindra Bank’s Group President for Consumer Banking, Shanti Ekambaram said the RBI has announced some timely liquidity measures that will provide relief to the most vulnerable by ensuring credit flow to individuals and small businesses and also give them greater repayment flexibility.

Viral Sheth, finance controller at Moneyboxx Finance, said several states with a huge rural population like Uttar Pradesh, Bihar and West Bengal are witnessing sharp rise in new cases and it was imperative to provide a helping hand to vulnerable sections of individuals and small businesses.



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ESAF SFB mops up Rs 162 crore via pref allotment of shares

Personal Finance

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According to the unaudited results, the bank has achieved a year-on-year (y-o-y) growth of 25.86% in gross business during FY21.

ESAF Small Finance Bank on Friday said it has raised Rs 162 crore through preferential allotment of shares. A total of 2.18 crore shares were allotted to certain investors in the HNI category, including some existing investors, leading to a dilution of approximately 5%, at Rs 75 per share.

The shares were priced at 2.64 times pre-issue and 2.45 times post-issue of its book value as of September 30, 2020, sources at ESAF said.

“The additional capital raised will strengthen the capital adequacy by about 250 basis points and will support our ambitious growth plan set for FY22. The overwhelming response shown by our investors during these tough times gives us the confidence to aim big. Considering the comfortable capital position and subdued market outlook on BFSI stocks, we had decided to postpone the IPO scheduled for the last financial year,” said K Paul Thomas, MD & CEO. The bank has reported a stupendous growth during these challenging times, he added.

According to the unaudited results, the bank has achieved a year-on-year (y-o-y) growth of 25.86% in gross business during FY21. It has reported a 28.04% y-o-y rise in total deposits to Rs 9,000 crore and advances crossed Rs 8,413 crore at a growth of 23.61% as on March 31, 2021. Total business crossed Rs 17,412 crore, against Rs 13,835 crore in the year-ago period. “The results show our commitment to our stakeholders. We are also thankful for the resilience shown by our customers” Thomas said. He added that the CASA growth was impressive at 82%, thanks to the focused strategies adopted by the bank.

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