George K. John, Executive Director, ESAF Small Finance Bank

Having crossed the ₹50,000 crore total business milestone, the Thrissur based ESAF Small Finance Bank is now charting a path of balanced and sustainable growth with greater diversification across MARG (MSME, Agri, Retail & Gold) secured lending segments.

George K John, Executive Director, ESAF Small Finance Bank said the realisation of ₹50,000 crore business within 9 years is a significant achievement and reflects the trust of over 10 million customers across the country. It marks the bank’s evolution from a predominantly microfinance-focused institution to a diversified retail bank, he said.

“Our focus now is not merely on scale, but on sustainable and profitable growth. Over the next few years, we aim to accelerate growth in MARG (secured assets), strengthen our deposit franchise, improve CASA, and enhance customer engagement through digital channels”, he said.

Asked on the expansion strategy, the Executive Director said it is a balanced combination of physical reach and digital capability. ESAF plans to combine selective branch expansion in high-potential markets with technology-led growth, leveraging its extensive rural and semi-urban banking network.

“We are currently undertaking significant technology transformation programmes through ESAF 2.0 StratoNeXt - Digital & IT transformation, which includes modernisation of our core banking platform, customer relationship management systems, digital on-boarding, lending platforms, data architecture, API ecosystem etc”, he said.

The bank, according to him, aims to complete the ESAF 2.0 transformation programme by Q3 FY27 while improving productivity through process simplification, data-driven decision-making, and technology adoption. It continues to improve the quality and composition of its balance sheet by increasing the share of secured assets and building a strong, granular deposit franchise.

On the measures taken to reduce NPA, George John pointed out that the improvement in asset quality has been the result of a focused and disciplined approach across multiple dimensions. Over the last two years, the bank has consciously diversified its portfolio by increasing the share of MARG secured lending products. This has helped improve the overall risk profile of the portfolio.

The bank also strengthened its underwriting frameworks, enhanced portfolio monitoring capabilities, and adopted data-driven early warning systems to identify stress well in advance. Dedicated collection and recovery initiatives, along with rigorous monitoring mechanisms, have played a critical role in improving recoveries and controlling fresh slippages, he added.

While the external environment, particularly in the microfinance sector, has remained challenging, he said the focus on disciplined growth, portfolio diversification, proactive risk management, and strong execution has enabled teh bank to steadily improve asset quality and position itself for sustainable long-term growth.

Published on June 25, 2026