ESAF Bank Shares Jump: Bad Loan Sale Boosts Stock
ESAF Small Finance Bank’s stock jumped as high as 11.3% today after the sale of non-performing assets, a move that invigorates the lender. The bank’s board approved selling a pool of stressed assets,including both npas and technically written-off accounts,a decision that boosted market confidence. Concurrently, ESAF announced a strategic partnership wiht Maruti Suzuki India. The alliance will create retail financing options for new, used, and commercial vehicles. Technical indicators show an RSI of 43.8, suggesting a neutral market position for the primary_keyword. The collaboration between the bank and Maruti Suzuki specifically targets tier-II and tier-III cities, widening opportunities for potential car buyers. News Directory 3 will continue to monitor ESAF’s performance. See the report for all the details. Discover what’s next …
ESAF Bank Stock Jumps on Loan Sale, Maruti Suzuki Partnership
Updated June 19, 2025
Shares of ESAF Small Finance Bank experienced a surge, climbing 11.3% to reach an intraday high of Rs 33.83 on the BSE Thursday. This increase followed the Thrissur-based lender’s announcement of its board’s approval to sell a pool of non-performing assets to an asset reconstruction company (ARC).
The pool of assets includes Rs 362.43 crore in non-performing assets (NPAs) and Rs 372.75 crore in technically written-off accounts. The bank reported a provisioning coverage of 90.15% for this pool. The Asset sale Committee of executives is authorized to finalize the transaction. The ARC’s identity and specific sale terms remain undisclosed.
In a separate development,ESAF Small Finance Bank is partnering with Maruti Suzuki India to provide retail financing solutions for new cars,used cars,and commercial vehicles. A memorandum of understanding (mou) was signed to offer accessible financing, especially for first-time buyers. This collaboration aims to utilize the networks of both ESAF SFB and Maruti Suzuki in tier-II and tier-III cities, expanding vehicle ownership opportunities.
Technical Indicators
The Relative Strength Index (RSI) is at 43.8, suggesting the stock is neither overbought nor oversold. The MACD reads 0.7, above the center line but below the signal line. The stock price is below its 10-day,20-day,and 200-day simple moving averages (SMAs) but remains above the 50-day and 100-day SMAs.
ESAF Small Finance Bank shares have increased by approximately 13.5% over the last three months but have decreased by 43% over the past year. The company’s market capitalization is approximately Rs 1,566.9 crore.
what’s next
The bank will proceed with the asset sale and continue to develop its partnership with Maruti Suzuki, focusing on expanding its reach in smaller cities and offering diverse retail financing solutions to boost vehicle ownership.