ESAF Small Finance Bank creates micro banking vertical with 5,200 staff

ESAF Small Finance Bank absorbed approximately 5,200 employees from ESAF Swasraya Multi-State Agro Co-operative Society Ltd (ESMACO) as part of a strategic restructuring to directly manage its microloan portfolio. This move aims to reduce concentration risks and improve control over operations. ESMACO, though continuing to manage business at Customer Service Centers, will now oversee 14.9% of gross advances, while the bank will manage 66.14% directly. The new micro banking vertical will cater to rural needs with micro-loans, agriculture loans, vehicle loans, and home loans. This restructuring aligns with the bank’s risk management and operational efficiency objectives, said Managing Director K Paul Thomas.