Elevated credit costs in FY27
CFO acknowledged that backlog provisioning on NPA stock will continue through FY27, keeping credit costs above steady-state 2%.
ESAFSMALLFINANCEBANK / bear-case history
Track the concerns that keep returning.
ESAF Small Finance · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
NIM compression from secured shift
As the bank shifts to secured lending (lower yields), NIM may trail loan growth; management guided NIM around 7% plus/minus 0.5%.
Execution risk in digital transformation
Core banking upgrade (Bank 2.0) is expected to complete by Q3 FY27; delays could impact operational efficiency.