ESAF SFB share price jumps over 11%

ESAF Small Finance Bank ESFB) witnessed a sharp jump in its share price by 11.5%, hitting ₹34 apiece in Thursday's trading session, marking its most significant intraday gain since February 2024. The rally came after the bank informed the exchanges that its Board of Directors had approved the sale of a stressed asset pool worth ₹735.18 crore to an Asset Reconstruction Company (ARC). This pool includes ₹362.43 crore in non-performing assets (NPAs) and ₹372.75 crore in technically written-off loans, with a high provisioning coverage of 90.15%. The move is seen as a step toward balance sheet cleanup and improved asset quality. The board has also authorized the Asset Sale Committee to complete the procedural requirements related to the sale.