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ESAF Small Finance Bank to Raise ₹500 Crore Tier II Capital via NCDs
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CNBC TV18•23-09-2026, 18:08
ESAF Small Finance Bank to Raise ₹500 Crore Tier II Capital via NCDs
- •ESAF Small Finance Bank's board approved raising up to ₹500 crore through private placement of Non-Convertible Debentures (NCDs) to augment its Tier II Capital.
- •The NCD issue will consist of Listed, Rated, Taxable, Unsecured, Transferable, Redeemable, and Fully Paid Up Basel II-compliant Lower Tier II subordinated bonds.
- •The fundraise, in one or more tranches, is in line with the bank's business plan for the financial year 2026-27 and is within the overall borrowing limit approved by shareholders.
- •The NCDs will be listed on either the Negotiated Trade Reporting Platform of the National Stock Exchange of India Ltd or the Wholesale Debt Market of BSE Ltd.
- •The Management Committee is authorized to determine the terms and conditions of the issue, including tenure, interest rates, and repayment schedules.
Key Questions Answered
ESAF Small Finance Bank's board approved raising up to ₹500 crore through the private placement of non-convertible debentures to augment its Tier II capital.
The proposed securities are planned to be listed either on the Negotiated Trade Reporting Platform under the New Debt Market of the National Stock Exchange of India Ltd or the Wholesale Debt Market of BSE Ltd.
For the fourth quarter ended March 2026, ESAF Small Finance Bank reported a net profit of ₹24 crore compared to a loss of ₹183 crore in the year-ago period, with total income rising to ₹1,196 crore.
