ESAF Small Finance Bank has announced key strategic initiatives to bolster its capital base and support future growth. These decisions were approved by the Board of Directors in a meeting held on September 20, 2025.
Capital Raising Initiatives
The Board has approved the raising of Tier I capital through the issuance of equity shares. The bank may utilize one or a combination of the following methods, executed in one or more tranches:
- Rights Issue
- Preferential Issue
- Private Placement
- Qualified Institutional Placement (QIP)
These steps are subject to shareholder approval, reflecting ESAF Bank’s commitment to transparent governance.
Increase in Authorised Capital
To support its expansion plans, ESAF Small Finance Bank has also approved an increase in authorised capital, amending Clause V (Capital Clause) of its Memorandum of Association. The authorised capital will rise from Rs. 600 crore to Rs. 1,000 crore, representing a 66.67% increase. The approval of both the Reserve Bank of India (RBI) and the bank’s shareholders is awaited for implementation.
Management Update
The bank has announced a senior management change: George Thomas, Executive Vice President of Human Resources, will be relieved of his responsibilities effective September 30, 2025, before the completion of his contractual tenure, due to personal reasons. ESAF has assured stakeholders that appropriate internal arrangements have been made to manage the transition smoothly.
Regulatory Compliance
In accordance with Regulations 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the bank has made these disclosures publicly available.
The Board meeting, where these decisions were taken, commenced at 9:30 AM and concluded at 12:15 PM on September 20, 2025.
Summary
- Capital Raising: Through rights issue, preferential issue, private placement, or QIP
- Authorised Capital: Increase from Rs. 600 crore to Rs. 1,000 crore
- Management Change: George Thomas stepping down as EVP (HR) effective September 30, 2025
- Strategic Objective: Strengthen capital base and prepare for future growth opportunities
These initiatives demonstrate ESAF Small Finance Bank’s proactive approach to capital management and its focus on sustainable expansion in the evolving Indian banking landscape.
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