ESAF Small Finance Bank Limited (NSE: ESAFSFB) Q4 2025 Earnings Call dated May. 19, 2025
Corporate Participants:
Unidentified Speaker
Gireesh C.P — Chief Financial Officer
K. Paul Thomas — Managing Director and Chief Executive Officer
Hari Velloor — Executive Director
George Kalaparambil John — Executive Director
Analysts:
Unidentified Participant
Viral Sanklecha — Analyst
Ashlesh Sonje — Analyst
Deepak Poddar — Analyst
Presentation:
Unidentified Speaker
Ladies and gentlemen, the call will begin shortly. Please stay connected. Thank you.
Unidentified Speaker
Foreign.
operator
Ladies and gentlemen, good day and welcome to the ESAF Small Finance Bank Limited Q4 and FY25 earnings conference call hosted by MUFG in time India Pvt Ltd. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Viral Sanklecha from MUFG in time India Private Limited.
Thank you. And over to you sir.
Viral Sanklecha — Analyst
Thank you. Navya. Good morning ladies and gentlemen. I welcome you for the Q4 and Q4 FY25 earnings conference call of ECEF Small Finance Bank Limited to discuss this quarter’s business performance. We have from the management, Mr. K. Paul Thomas, Managing Director and CEO Mr. Girish CP CFO Mr. George K. John, Executive Director and Mr. Hari Vellore, Executive Vice President for Credit. Before we proceed with this call, I would like to mention that some of the statements made in today’s call may be forward looking in nature and may involve risk and uncertainty. For more details, kindly refer to the investor presentation and other findings that can be found on the company’s website.
Without further ado, I would like to hand over the call to the management for the opening remarks and then we will open the floor for Q and A. Thank you. And over to you sir.
K. Paul Thomas — Managing Director and Chief Executive Officer
Thank you. Thank you, Viraz. Good morning everyone. On behalf of Ehsa Small Finance bank, we welcome you to the Q4 and FY25 earnings call where we will discuss our business and financial performance. We are grateful for your continued support and interest in our journey. Joining me today are Mr. George K. John, Executive Director, Mr. Girish CP EVP and CFO Mr. Harry Balloor, EVP. I hope you all had a chance to review our quarterly results and investor presentation which are already available on the Stock Exchange and our bank’s website. At Esau Small Finance bank, our foundational commitment to financial inclusion continues to shape our strategy as we evolve from serving the underserved to engaging a broader customer base across all segments of society.
Our vision is rooted in social impact, yet firmly aligned with sustainable business growth. With a thoughtfully curated and diverse retail portfolio, we are deepening our presence in secured lending, housing finance and gold loans while expanding CASA and digital banking initiatives to drive long term customer engagement and value. Our retail strategy is designed to balance financial empowerment with profitability enabling scale without compromising our mission, India’s macroeconomic environment continues to show resilience with structural reforms, formalization of the economy and digital acceleration opening new avenues for inclusive growth. The BFSI sector stands at the cusp of transformation driven by regulatory progress, fintech collaboration and a renewed focus on banking service expansion in underserved geographies.
In this dynamic landscape, isa small finance bank is uniquely positioned to lead as India’s foremost social bank, offering equitable access to financial services while delivering stakeholder value through innovation, operational excellence and responsible banking. Aligned with these shifts, ESAV bank has embarked in its transformation journey under the banner of ESOP 2.0 Project statonext, a strategic initiative aimed at scaling operations, enhancing customer experience and building a future ready digital technology and operational framework. With this context, I now invite Our Executive Director, Mr. Josh Kajohn to take you through the next segment.
George Kalaparambil John — Executive Director
Thank you Porsa and good morning everyone. Let me begin by providing a brief perspective on the broader macroeconomic environment that set the corners for our business performance. The Reserve bank of India has projected a real GDP growth rate of 6.5% for FY26 consistent with its estimates for FY25. This stability in growth expectations underscores the resilience of the Indian economy supported by robust domestic consumption, sustained public capital expenditure and a gradual pickup in private sector investment. While global headwinds and geopolitical uncertainties persist, India continued to demonstrate strong macroeconomic fundamentals. Further, on April 9, 2025, President bank of India announced a 25 basis point cut in repo rate bringing it down to 6%.
This decision by the Monetary Policy Committee signals a continued focus on nurturing economic growth and enabling improved credit flow. This marks the second consecutive rate cut and is expected to lower borrowing cost thereby providing relief to household and businesses and fueling broad based economic recovery. FY25 was a challenging year for Indian microfinance sector marked by significant stress in asset quality and mutant growth. Non organization saw a steep 42% decline in volume while delinquency starts crossing 28,000 crores. As per the credit bureau report, the sector overall loan Portfolio contracted from 4.34 lakh crore in FY24 to 3.75 lakh crores in FY25 and the asset quality reported sharply with 90 plus DPD rising to 3.5% in Q3FY25 which is priced from 1.8% in Q1.
External factors further intensify the strain such as Kannada and Tamil Nadu government legislation stabilizing coercive recovery practices and the regulator’s informal guidelines to cut over lending to highly leverage borrowers led to constrained credit flow and cost lending behavior across the sector. Looking ahead to FY26, gradual stabilization is activated, particularly in the later half of the year. According to India Rating, credit costs are expected to ease from 9.6% in FY25 to approximately 4%, offering some relief to the lenders. Additionally, RBRE’s recent relaxation of capital adequacy requirement could support liquidity and improve lending capacity. Nevertheless, most transbanks in NBFC MFI expected to remain prudent, tempering the growth ambitions and reinforcing credit discipline to strict underwriting frameworks.
The pace and extent of recovery will depend on greater regulatory clarity, improved borrower repayment behavior and sustained macroeconomic stability. At ESA’s small France branch, FY25 was a year of static growth, correction and balanced growth. While he faced challenges in microfence portfolio, our response was deliberate and disciplined, backed by a renewed focus on portfolio quality, record lending and sustainable retail growth. I am pleased to report that during the fourth quarter we made meaningful progress in advancing our strategic priorities with our continued focus on quality growth, risk calibration and operational efficiency. Our performance reflects steady momentum across key business segments even as we maintained a measured and cautioned approach in the microfinance portfolio in line with evolved marketing conditions and our current risk management approach.
Our total loan book stood at 19,640 crores in Q4FY25 as against 690 crores in Q4FY24. The loan book stood at same level as on Q4FY24 on account of at office level write off of rupees12.25 crores which is 6.53% of the operating book as well as the growth in the micro asset. However, the growth in micro asset is partially offset by strong traction in secured retail assets including gold loan, MSME and affordable housing. Underscoring with our strategy to diversify the portfolio and build affiliates, Kerala continue to be our leading market contribute approximately 36% of our total advances.
However, in line with our strategic goal of durable de risking and portfolio diversification, we have consciously moderated our dependency on the stage. Kerala share in the overall portfolio has declined from 56% in FY22 FY21 to 36 percentage in FY25, reflecting a focused expansion into high protection market across other states during the quarter, we achieved strong traction in secured lending. Secured loan disbursement stood at 5,832 crores in Q4FY25 marking a 167% increase over 2,107 crores in Q4FY24. This growth was primarily led by products such as Goldon Mortgage, MSME and Vehicle Loan. In line with our strategy to enhance asset quality, improve yield and build a more resilient credit portfolio.
In line with our long term strategic format to increase the share of secured assets to 70% by March 2027. We are pleased to report substantial progress on this front as on FY25 secured loan constituted 50% of our total loan book, a marked improvement from 29% as of March 2024. This shift reflects our focus execution on portfolio rebalancing and risk containment. The major driver for this growth has been our Golden Portfolio which registered a quarter on quarter growth of 25 percentage and a year on year increase of 90%. The strong quality performance in this segment we affirm our strategic embassies on secured lending as a key pillar of sustainable growth.
Moving on to Mortgage Vehicle Loan and MSME lending, these segments record a robust growth of 23% over the previous quarter and 100% on year on year basis. This earth plays a key role in strengthening our secured portfolio. As of Q4FY25 our secured loan business stood at 15,078 crores compared to 6671 crores in Q4FY24. Reflecting the growing traction of our calibrated lending strategy, the secured portion of our total loan book increased from 40% in Q3FY25 to 51 percentage in 15% in Q4FY25 which a clear upward trajectory as we enter the new fiscal years. The proposition of record disbursements increased significantly from 43% of Q4FY24 to 85% in Q4FY25.
Importantly, we are already surpassed our internal target of achieving a 45% secured initiative by March 2025, reaffirming the effectiveness of a strategic focus on portfolio resilience. The growing share of secured ordination is clear demonstration of our commitment to strengthening asset quality, improving yield consistency and driving sustainable long term growth as well as utilizing all the channels for the Fed strategy. The disciplined approach is central to our effort in building a more balanced and fruitor ready loan book. At the same time the moderation is in uncircle lending should not be seen as a departure from our core mission of national inclusion.
We remain deeply committed to serve underserved and continue to innovate, derisk and diversify our inclusive financial offerings to ensure long term viability and impact. Isabank has set up a Sensation network of 787 banking outlets, added 34 new banking outlets in the FY25 under 1106 customer service centers. Also on FY25 we added 150 new CSCs. During the French year we have 693 A teams and the other 79 new. In the FY25 we have 34 institutional business correspondents spread across 26 states and 2 union territories. On the human capital front, we are embracing AI driven HR solution to streamline recruitment, enhance performance management and improve employee engagement.
Our digitally first approach is particularly effective in attracting an onboarding tech savvy next generation talent while seamlessly nurturing a culture of continuous learning and upskilling across the organization. At the heart of our people strategy lies our commitment to serving leadership complemented by our core value of customer centricity, accountability, transparency and commitment. Rooted in people first philosophy, this approach is deeply embedded in our culture and leadership ethos. As a part of broader transformation agenda, we are also making significant strides in our Technology Transformation project, a cornerstone of ESAP 2.0 start next. This initiative encompasses code banking modernization, business channel enhancement, process automation and data driven decisioning.
Most importantly, it adheres to regulatory compliance and adopts security by design. With structured milestone already achieved, the program is progressing on track and we are confident it will strengthen our operational efficiency, customer experience and scalability. Positioning Isaiah bank for long term leadership in the financial space as we look forward, we remain committed to scaling our growth responsibly, ensuring that secular lending continues to be a key driver of value while maintaining the quality and stability of our asset base. We are actively recompositing our portfolio with a sharper focus on non microfinance segments aimed to build a sustainable and diversified loan book and in resilience.
Retail and other secured loans now constitute the majority of our portfolio, reflecting a caliber approach that serves as our guiding framework amid the evolving dynamics of microfinance sector. While it may take a couple of quarters to definitely mark the bottoming out of current scenario sectoral esters, the ongoing situation is gradually improving. We expect the COVID momentum to build in the second half of the year supported by favorable macroeconomic conditions alongside continued operational discipline and ancestral prudence, the bank management is fully cognizant of the delicate balance between growth, sustainability and risk and is determined to lead Reserve bank into its net phase of a stronger, more agile and future ready institution.
We continue to serve the underbanked segment with deep interest in semi urban and rural market built on legacy of trust and social commitment. At Esau we carry this trust with a deep sense of responsibility upholding our core values in every business endeavor. With this contest, I now invite our EIP and CFO Mr. Girish AP to take you through the financial performance.
Gireesh C.P — Chief Financial Officer
Thank you sir. Good morning everyone. I thank you all for taking time for joining us on the call. The financial year 2025 was a year of transition towards secured loan book building and managing asset quality. Let me give you all about financial performance highlights for Q4FY25. Our deposit in Q4FY25 stood at 23,276 crores up from 19,868 crores in Q4FY24 marking a 17% increase YoY basis whereas the gross advances stood at 18,779 crores as compared to 18,772 crores in Q4FY24. As a strategy, the bank has done technical write off of advances amounting to 345 crores in Q4 and cumulatively by crores in FY25 to clean up the NPA book.
Regarding disbursements, the disbursements for Q4FY25 was 6878 crores compared to 5266 crores in Q4FY24 reflecting yoy change of 30%. There has been shift towards more of secured loans which were 85% of the total disbursements during the quarter. The CASA balances continue to reflect the strength of our deposit franchise. As of Q4 FY25 CASA balances reached 5,783 crores compared to 4,502 crores demonstrating a yoy growth of 28%. The FY25 was a year of accelerated transition of advanced book from unsecured to Sequoia. Net interest income for Q4FY25 declined to 436 crores compared to 591 crores in Q4FY24.
So also the net interest margin for Q4FY25 came down to 6.9% down from 10% in Q4FY24 due to the following factors. The shift in the composition of our loan portfolio mix, strategic decision to have excess liquidity and controlled growth in loan book and delinquencies in the high yielding micro group. This is evident from the fact that secured loan component increased from 29% to 52% YoY and the CD ratio stood at 77% as of 3-21-2035 as against 92% on 3-31-2024. The non interest income increased by 5.7% on YoY basis despite moderated asset growth whereas Q4 it decreased marginally by 4.3% due to moderated micro loan disbursements.
Our operating cost except the exceptional item increased from increased by 7.1 percentage in Q4 and 15.45 percentage on yoy basis which is considered normal due to increase in the business and outlet expansions. The pre provisioning operating profit declined to 90.66 crores as compared to 284 crores in Q4FY24 driven by unusual interest reversals and excess liquidity. During Q4FY25 we made provisions amounting to 331 crores which included 130 crores over and above the regulatory requirements and as per the normal policy of the bank. As a prudent measure to strengthen our balance sheet, this proactive approach contributed to a reduction in net NPA levels and an improvement in the provision coverage ratio which crossed 80 percentage levels.
As a result of these higher provisions, our net loss was 183 crores for the quarter which is lower than the net loss of 210 crores in the preceding quarter. In terms of asset quality, gross NPA stood at the same level of 6.9% in Q4 FY25 as compared to the trailing quarter. Similarly, the net NPA stood at 2.9% for Q4 FY25 similar to the previous quarter, the provision coverage ratio also strengthened standing stable at 80.5 percentage reinforcing our commitment to demonstrate better asset quality. Looking ahead, we remain focused on maintaining gross and net NPA at reduced and sustainable levels through continued vigilance and disciplined risk management framework.
Over the lending book, we undertook prudential write off totaling to 345 crores in bad debts during the quarter. Net slippages percentage we have 9 percentage in Q3 and Q4 which is moderator to 7.88% in Q4 FY24. We expect that this will further moderate in coming quarters. We are actively implementing a range of productivity enhancement and cost control measures across the organization as part of broader strategy to drive operational excellence. On the liability front, FP rates were already reduced by 50 basis point and SB trades. Effective rates have been moderated by around 70 basis points by the decision of ALCO on the asset side also pricing moderation has been done to take care of the rate cut impact.
Besides rationalizing the service charges on both sides in parallel, we continue to closely monitor expense management and taken various cost reduction and rationalization measures to improve overall profitability. In addition to the above initiatives, initiatives are also taken to improve efficiency, optimize resource utilization and reduce overall operating cost without compromising on the quality of our services. With the moderation of risk around micro banking book and the positive steps taken by us as explained above, we expect that the positive ROA will be achieved by second half of FY26 and this year will be a consolidation year with medium growth in business and improved operational numbers.
Our disciplined approach allows us to remain agile and financially resilient even in a challenging environment. We are also setting aside additional provisions beyond regulatory requirements to safeguard against potential threats in vulnerable segments. This proactive stance strengthens our balance sheet and reinforces our capability to navigate future uncertainties and confidence. Our focus continues to be on accelerating NPA recoveries and expanding high margin lending products. We remain committed to maintaining a healthy portfolio, minimizing risk exposure and supporting our customers responsibly. These focused efforts will not only help us navigate current challenges, but also position us for sustainable long term success.
Thank you very much and the floor is open for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touch tone phone. If you wish to remove yourself from the question queue, you may press STAR and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Unidentified Speaker
Sam.
operator
We take the first question from the line of Vishak Zaveri from ABC Capital. Please go ahead.
Unidentified Participant
Hi. Am I audible?
K. Paul Thomas
Yes, yes.
Unidentified Participant
Hi. Thank you for taking my question. Actually I just have a couple of questions. So first one would be on the lines of your KATA ratio. So if I can see the class size ratio has improved to 24.8%. So just wanted to know what initiatives helped drive this growth and how do you see it trending in FY26?
K. Paul Thomas
Okay.
Unidentified Speaker
Shall I take that question? Hello.
K. Paul Thomas
You’re done or.
Unidentified Participant
Yeah, I am.
K. Paul Thomas
Okay.
Gireesh C.P
On the CASA last year the variable pay of the employees have been more focused towards CASA growth rather than the overall overall deposit book growth. And also there were specific targets given to each branches for achieving the CASA numbers.
Unidentified Participant
Yeah, another would be with over 10.4 lakh new customers added in FY25. So how do we plan to deepen wallet Share and reduce customer churn.
K. Paul Thomas
Shall I take that question, Girish?
Gireesh C.P
Yes sir.
Unidentified Speaker
Hello.
Unidentified Speaker
Yeah, can you hear me?
K. Paul Thomas
Yes. Yeah.
K. Paul Thomas
So you were asking about the 10 lakh new customers acquired and how to prevent churn. Excuse me. So our churn essentially is very much in tune with what the general industry will have. Out of every hundred customers whom we acquire, we are quite happy about 30 to 40% of them use our accounts. So what we have been doing is a three or four step approach in the first three months since some onboarding, we have a series of measures to make sure that the customers engage completely. That the customer starts using our services in one way or the other.
He or she carries out X amount of transaction. So that over a three month period we try to ensure that the customers who we wish to retain will be an engaged customer. And from then on we try to take the relationship forward. So to that extent that is how we control the journey.
Unidentified Participant
Thank you.
K. Paul Thomas
Does that answer?
Unidentified Participant
Yeah. Sorry. I’m sorry.
K. Paul Thomas
Please go ahead.
Unidentified Participant
Yeah. So I just had one more question on the. On the branches and your further expansion. So like I can see we have 787 branches with 693 ATMs. I just wanted to know are we planning any further expansion or optimization in FY26 particularly in the under penetrated region?
K. Paul Thomas
Yes, I’ll take the question. Yeah. Yes. As per the board approval we are adding 38 branches in this ranch here and majority are in the unbanked rural locations and overall locations.
Unidentified Participant
Okay, thank you.
operator
Thank you. Next question is from the line of Vivek Gupta from Star Investment. Please go ahead.
Unidentified Participant
Hello. Am I audible?
K. Paul Thomas
Yes. Yes.
Unidentified Participant
Yeah. So my first question is relating to the net interest income which dropped to 436 crore from 491 crore in Q4. So like how do you plan to protect margins in FY26 given the shift to secured lending and high provisioning?
Gireesh C.P
Yes. You know there were various aspects for the net interest income margin contraction. First of all there were, you know, higher number of slippages during the year. And most of the slippages were from the micro banking book which are high yielding in nature. And also during the last year the cost of deposit has increased and also the cost of funds in line with the market. But of late, currently we have already reduced the time deposit rates and also on the CASA rates, I mean savings bank deposit rates has already been rationalized in line with the market.
But the impact of the reduction in cost of deposit on the term, on the term deposit it will be flowing maybe over a 1:1.5 year period fully. And also there is a shift from the high yielding micro banking book to secured book which is having around 10 percentage interest rate differential. So these are the issues which has affected the net interest income in a big way. However, this acquired loan increase with somewhere around 14 percentage interest rate, the collection cost which is otherwise incurred for the micro banking book we are saving by around 8 to 9 percentage.
So that way it is not a significant reduction. So we will be comfortable operating with a higher secured loan book at a net interest margin of somewhere around 8 percentage.
Unidentified Participant
Okay, thank you. My next question is relating to the like. If the full year loss was 521crore, so what is your roadmap to profitability? Like is if is FY26 expected to be a turnaround year.
Gireesh C.P
We hope by second half of the current fiscal we we will be able to turn around on a quarterly basis. We will be turning around from bread in Q3 and Q4.
Unidentified Participant
Okay, thank you.
operator
Thank you. Participants who wish to ask questions may please press N1 at this time we take the next question from the line of Rudhisha from SAF Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible? Yes.
K. Paul Thomas
Yes.
Unidentified Participant
Yeah. So my question is that given the continued macro level stress in the legacy of micro loan portfolio, how much of the 332 crore provision in quarter four as attributable to this segment and when do you expect normalization?
Gireesh C.P
Except around 21 crores all belongs to the micro banking book.
Unidentified Participant
And when do we expect the normalization normalize?
Gireesh C.P
The reverse trend has already started as we see from the market as well as on our book. So we are hopeful of reversing the trend by second half of the current fiscal.
Unidentified Participant
Okay, my next question is the bank wrote off around 345 crore during this quarter. So do you see any further write offs in FY26?
Gireesh C.P
The write off is only a technical write off which is a balance sheet management exercise through which we are managing the gross gross NPA percentages.
Unidentified Participant
Okay.
Gireesh C.P
And they and the continued efforts on the recovery on this book will continue as if the technical write off has not been there. So that way it is not a totally fully written off. It is only a strategic writers to manage the gross NPLs.
Unidentified Participant
And we further see any write of such in FY26
Gireesh C.P
that depends upon the delinquency level which is flowing maybe as I was mentioning earlier by Q by half by h2 only the moderation will completely in and therefore some more write off can be expected.
Unidentified Participant
Okay. And how sustainable is the current 80.5% PCR. Sorry, can you come back? I am asking that how sustainable is the current 80.5% PCR?
Gireesh C.P
Yeah, all the delinquencies are flowing out of unsecured book. So over a one year period we have to provide it fully as per regulatory guidelines as per as well as our own policy. So that way you know the rate of the rate is on a sustainable basis only.
Unidentified Participant
Okay, thank you.
operator
Thank you. Participants who wish to ask questions may please press star and one at this time. I repeat to ask a question please press star and one. Now we take the next question from the line of Nihal Sharma from NS Investment. Please go ahead.
Unidentified Participant
Thank you for taking my question. I have couple of questions. First one, being secured loans now form over 52% of your total loan book up from approximately 30% last year. Can you elaborate on how you plan to scale this further and what segments within secured lendings are seeing the most traction?
Unidentified Speaker
Yeah.
K. Paul Thomas
Thank you. So our strategy, what we adopted is that we started an area as well as regional credit hub, dedicated team for credit processing. Then a degree for the asset operations and sales team. So along with the ROC and necessary guardrails reporting. So that was the focus and we utilizing all our channels for sourcing the leads. And we have dedicated sales team also for the asset products whether it is MSME Agri or a gold loan.
George Kalaparambil John
I would like to add here that if you see, you know, we have shared the presentation in terms of the mortgage and the mobility books, we have doubled our book size in the last one year. Though the figures by themselves may not be very large, but they have doubled. And this we have done in a very, very conservative way with hardly any increase in the NPA level. So in the current year also this will continue. You are asking about how we’ll build a secured loan. So apart from gold loans, in terms of the MSME mortgages and mobility, the growth, the traction will be pretty high and we will do it in a very safe way.
Like Bobby was saying, we have assets and hubs. We will not go into areas where we are not fully. What do you say, ready in terms of resources and infrastructure. But we will surely do a lot of business in that sector.
Unidentified Participant
Okay. My further question being with the gold loan portfolio almost doubling year on year, what is the yield profile and risk appetite associated with this segment and are you seeing any early signs of stress or saturation?
Unidentified Speaker
Okay, yes. Yeah, as of now we don’t see any stress. You know we have the. The NPA levels in. In gold is almost minimal. And that too is kind of because of certain micro loan borrowers having turned delinquent. And so the gold loan becomes delinquent. That is why in terms of the growth and in terms of the size of the business itself, as you know, currently our book is something like 6,000 odd. And that is hardly a drop in the ocean. But in terms of the of the speed at which we’ve been able to build in a safe way, I think there is a huge market there who do not want to borrow at extremely high rate but want the convenience of having a bank branch close by.
It is in that niche that we are operating. And our current book size is so small that in the general terms it is hardly anything. This is one aspect. The second aspect is if you see many large NBFCs have been looking at gold loans in a major way. In fact quite a few of them have bought small gold loan NBFCs also. So the way the market is and the way the availability of the product is, there is a huge amount of growth still to happen. And we don’t see too much of a problem in terms of strength.
However, we will certainly be keeping an eye in terms of share of gold loans. How much we want to cap it at that certainly is a strategic decision. We keep and we continue to monitor so that no product becomes too big for the bank. Let me put it that way. That is the way in which we will be looking at this business.
Unidentified Participant
Thank you for answering the question, sir.
operator
Thank you. We take the next question from the line of Ashlesh Sonjay from Kotak Securities. Please go ahead.
Ashlesh Sonje
Hi team. Good morning. Few data keeping questions from my side. Firstly on the microfinance book. Sorry. On the total slippages you have reported for this quarter is at 427crores. Can you share what is the MFI portion out of this?
K. Paul Thomas
Girish has already handled that. It is largely microfinance excess. An amount of 20 odd crores. Yeah.
Ashlesh Sonje
Okay. I thought you said the provision number outside of microfinance was 30 crores. I was asking about slippages.
Gireesh C.P
No, no provision number. It was 20 crores. And the slippage number it is 30 crores.
Ashlesh Sonje
Okay, understood. And secondly for the entire FY25 you have made total provisions of about 12,50 crore. How much of the of this would be for MFI for the full year?
K. Paul Thomas
One second. We will just tell you.
Gireesh C.P
If you have any other question you can.
Ashlesh Sonje
Yeah, sure. Sorry. Just going back to the MFI slippages. I believe last quarter we had given a MFI slippage number of. Sorry, just 1/2. Of 485crores. Roughly, if I’m not wrong. Can you share the. The quarterly slippages in MFI for the. For 1Q as well as 2Q.
K. Paul Thomas
Would you repeat that question? You want the slippages in npa, right?
Ashlesh Sonje
In my Slippages in Microfinance book, the gross slippages for each of the four quarters.
K. Paul Thomas
If you see the presentation.
Ashlesh Sonje
Yeah, I see that you have disclosed the GNP numbers for MFI. And.
Unidentified Speaker
Would you take a look at slide 13 also?
Ashlesh Sonje
Yeah, I can see the SMA book here.
George Kalaparambil John
13 and then 40.
Ashlesh Sonje
Correct. So the third slide, number 13 gives me the 1 to 90 DPD book. Slide 14 gives me the 90 plus book. I’m saying what was the slippages, the additions into NPA for the entire book. It was 427 crores this quarter. You said out of that 427, roughly 400 would be for MFI. What is the same number for the last three quarters? That’s what I’m looking for.
Gireesh C.P
You can share it separately. Is it okay?
Ashlesh Sonje
Yeah, perfect. And.
Gireesh C.P
If you can call us directly after this call, we will share it.
Ashlesh Sonje
Sure. Okay. And just lastly, can you also share the blended cost of SAR deposits and term deposits?
Gireesh C.P
Total cost of deposit is 7.5 for the current year.
Ashlesh Sonje
Yeah. And what would be the cost of power deposits within that.
Gireesh C.P
Cost of size? 6.6percentage.
Ashlesh Sonje
Understood. Okay, thank you. If you can come back on the quarterly slippages, if you have. It would be great. Thank you.
Gireesh C.P
Yeah, we can come back.
operator
Thank you. We take the last question from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
I’m audible. Sir.
Gireesh C.P
Yes,
Deepak Poddar
sir. Just wanted to understand, have we kind of given any kind of growth outlook? I mean, how do you see the growth this year and anything on the credit cost.
Gireesh C.P
On the growth side? We are planning somewhere around 15 to 20 percentage growth overall. And on the credit cost, definitely it will be less than what you have seen during the last two years.
Deepak Poddar
Last two years. I mean, you are talking about FY24.
Gireesh C.P
And FY24 and 25. That is what we are looking.
Deepak Poddar
But FY23, our. Our credit cost was, I mean, much lower. Right? At 3%. So we are looking at below 3% kind of a credit cost in FY26.
Gireesh C.P
FY26, we don’t envisage that kind of numbers.
K. Paul Thomas
23, 24, it was 4.25.
Deepak Poddar
Okay.
K. Paul Thomas
And so around that level, we are. Expecting
Deepak Poddar
4, 4 and a half percent. Okay. Okay. That’s very helpful, sir. I mean, that would be it from my side. Thank you very much.
Gireesh C.P
Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraints. That was the last question. I would now like to hand the conference over to Mr. Viral Sankleja for closing comments.
Viral Sanklecha
Thank you, everyone. I would like to thank the management for taking this time out for the conference call today. And also thanks to all the participants. If you have any queries, please feel free to contact us. We are MUFG In Time India Private Limited Investor Relations Advisors to EF Small Finance Bank Limited. Thank you so much.
K. Paul Thomas
Yeah. Thank you very much.
Gireesh C.P
Thank you.
George Kalaparambil John
Thank you all.
Unidentified Speaker
Thank you. Thank you. Good night.
operator
On behalf of ESAF Small Finance Bank Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.