This Bank Revises Savings Account Interest Rates After 18 Days of Listing

ESAF Small Finance Bank, which enjoyed an outstanding debut on the stock exchanges earlier this month, has revised the interest rates on savings accounts. The shares of ESAF Small Finance Bank debuted spectacularly on November 10. According to the bank's official website, on November 20, 2023, the bank revised the interest rates on its savings bank accounts, offering a return of up to 7.50%.

ESAF Small Finance Bank Savings Account Interest Rates

On savings account balances of up to and including Rs.1 lakh, the bank is offering an interest rate of 3.50% and on savings bank deposits of above Rs.1 lakh up to and including Rs.5 lakhs (i.e. for incremental amounts above Rs.1 lakh), ESAF SFB is offering an interest rate of 6.0%. Customers of the bank will now get an interest rate of 7.50% on savings account balances of above Rs.5 lakhs (i.e. for incremental amounts above Rs.5 lakhs).

Monthly interest rate credits will be applied to savings bank accounts based on the balance at the end of each day.
On Friday, November 10, the Kerala-based ESAF Small Finance Bank staged its Dalal Street debut as the shares went public with a 20% premium over its IPO (initial public offering) issue price of Rs 60. The National Stock Exchange (NSE) listed ESAF shares at a premium of 18.33%, at Rs 71, while the BSE listed the stock at a premium of 19.8%, at Rs 71.90.

ESAF Small Finance Bank IPO was a book-built issue of Rs 463.00 crores. A total of 1.2 crore shares, valued at Rs 72.30 crores, was a part of the offer for sale (OFS) in addition to a fresh issuance of 6.51 crore shares, valued at Rs 390.70 crores. From November 3, 2023, to November 7, 2023, bids were accepted for the ESAF Small Finance Bank's initial public offering. On November 8, 2023, a Wednesday, the share allocation for the ESAF Small Finance Bank IPO was finalised.

On November 18, ESAF Small Finance Bank revealed a net profit for the July-September FY24 quarter of Rs 140 crore compared to Rs 57 crore in the year-ago period, representing a growth of 145%. Gross non-performing assets (GNPA) for the bank were 2.64 per cent in Q2FY24 compared to 8.11 per cent in Q2FY23. The net NPA stood at 1.19 per cent and the net interest margin (NIM) of the bank stood at 11.98 per cent in Q2FY24. The bank's distribution network possessed 700 branches and 579 ATMs spread across 236 districts in 21 states and 2 union territories as of September 30, 2023.