Transcript of the Earnings Call held on August 3, 2026.

Ref No: 04/SE/CS/AUG/2026-27 Date: August 07, 2026 Listing Department L i s t i n g & Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Mumbai – 400001 Plot No. C/1, “G” Block Bandra- Kurla Complex Bandra(E), Mumbai- 400051 BSE Scrip Code: 544020 NSE Symbol: ESAFSFB Dear Sir/ Madam, Sub: Transcript of the Earnings Conference Call on Financial Results of the Bank for the Quarter ended on June 30, 2026 We would like to inform that the Transcript of the Earnings Conference Call in connection with the Unaudited Standalone Financial Results of ESAF Small Finance Bank Limited ("Bank") for the quarter ended June 30, 2026, held on August 03, 2026 at 4:00 P.M (IST) is attached herewith. The above-mentioned transcript is also available on the website of the Bank at https://www.esaf.bank.in/investor-relation/?id=disclosure-to-stock-exchanges. This is for your information and appropriate dissemination. Thanking you Yours Faithfully, For ESAF Small Finance Bank Limited Ranjith Raj. P Company Secretary and Compliance Officer ESAF Small Finance Bank Limited Q1 FY27 Earnings Conference Call August 03, 2026 MANAGEMENT: DR. K. PAUL THOMAS – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – ESAF SMALL FINANCE BANK LIMITED MR. GEORGE K. JOHN – EXECUTIVE DIRECTOR – ESAF SMALL FINANCE BANK LIMITED MR. GIREESH C.P. – EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER – ESAF SMALL FINANCE BANK LIMITED Page 1 of 11 ESAF Small Finance Bank Limited August 03, 2026 Moderator: Ladies and gentlemen, good day, and welcome to ESAF Small Finance Bank Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Dr. K. Paul Thomas, Managing Director and Chief Executive Officer. Thank you, and over to you, sir. K. Paul Thomas: Thank you and good afternoon. We welcome you to the Q1 FY27 earnings call of ESAF Small Finance Bank. Joining me today are my colleagues Mr. George K. John, Executive Director, and Gireesh CP, EVP and CFO. Crossing INR 50,000 crores business is more than a numerical milestone. It reflects the successful execution of our transformation strategy over the last two years. We have consciously diversified our portfolio, strengthened underwriting, improved collections, enhanced our liability franchise, and invested significantly in technology. The improvements we are seeing today are therefore structural rather than cyclical. I would like to thank all our stakeholders including our employees and most importantly our customers for the trust they have placed on Our MARG strategy has clearly been the key highlight of our transformation journey, and all the constituent segments of MARG, especially gold, agri, vehicle, and mortgage, have all shown strong growth both on year-on-year and quarter-to-quarter basis. This portfolio also has lower delinquencies which has helped us in improving our asset quality. Our objective is no longer to pursue growth through a single product or customer segment; instead, we are building a well- diversified retail franchise where secured lending, emerging households, microfinance, deposits, and digital capabilities complement each other. This creates a more resilient balance sheet across economic cycles. Another important area for us now where we are looking at a renewed focus is the emerging household loans category, and we believe it to be the next catalyst for growth. Emerging households represents customers graduating from financial inclusion towards mainstream retail banking. These customers already have established repayment behavior and growing income profiles. By serving them through a broader suite of banking products, we deepen relationships while improving portfolio quality and lifetime customer value. The idea is to use a calibrated approach and build on our strong presence across rural and semi- urban geographies to provide a wider range of banking products and financial solutions to customers who have progressed beyond traditional microfinance. These customers should mostly be individuals, self-help groups, small entrepreneurs, and other emerging business customers with a maximum ticket size of INR 10 lakhs. Over time, we expect emerging households to become one of the largest customer franchises within the bank. All our strategies have been built with a clear focus on creating a stable, diversified, and resilient asset base that is supported by disciplined execution, investments in technology, prudent risk Page 2 of 11 ESAF Small Finance Bank Limited August 03, 2026 management, strong governance, and operational efficiency. This will help us serve a wider customer base and further improve our financial and business parameters in the coming quarters as well. On the macro front, the Indian economy and the banking sector continue to show resilience despite the ongoing West Asia crisis, with healthy credit growth across segments and steady deposit mobilization. While these events have not had any material impact on our business or operating performance, we remain cautious and watchful for future developments. So, overall, Q1 FY27 has been a good quarter for us and gives us confidence that we are moving in the right direction for the next phase of growth. The MFI sector appears to be gaining momentum. We have enhanced our secured portfolio and financial parameters have started improving again. Last two years, because of the asset quality and industry challenges, we could not fully leverage on the network that we have built. But going forward, we are seeing a great opportunity to efficiently build on the strength of this network, present mostly in the rural and semi-urban areas to expand our deposit franchise and strengthen our lending business, ultimately ensuring sustainable profitability. I now invite our Executive Director, Mr. George K. John, to take you through the next segment. George K. John: Thank you, Paul sir, and good afternoon, everyone. We continued our focus on sustainable growth and financial discipline during the quarter. As a result, there was a marked improvement across key parameters sequentially, including improved profitability, asset quality metrics, moderation in slippages, better operating efficiencies, and increasing return ratios. As of 30th June 2026, the total business stood at INR 50,140 crores, registering a healthy year- on-year growth of 23% compared to INR 40,923 crores last year. During the same period, gross advances grew by 27% while deposits increased by 19%, reflecting balanced growth across both sides of the balance sheet. If we add IBPC transaction done during the quarter, our total business stands at INR 51,140 crores. On the liability side, retail deposits remained strong at 91% of total deposits and CASA stood at 23.4%. Our liquidity coverage ratio stood at 133.31% as of 30th June 2026, indicating a comfortable liquidity position. Our liability strategy remains centered on granular retail deposits. We continue to deepen customer relationships while improving the quality and stability of our funding base. This remains a strategic priority for us. On the advances side, secured loan book grew by 35% Y-o-Y and now stands at 62% of total gross advances, whereas the unsecured loan book grew by 16% Y-o-Y. The improvement in asset quality is driven by better portfolio mix, stronger underwriting standards, disciplined collections, and normalization within the microfinance sector. We therefore believe the current trend is supported by structural improvements rather than temporary recoveries. Secured book is driven largely by MARG portfolio, and we saw stro [Showing first 8,000 characters — download PDF for full document]