Investor Presentaiton
Prudent Risk Management
++ ESAF
ESAF SMALL FINANCE BANK
Joy of Banking
ESAF SFB has a well-defined risk management architecture with:
O O O
Active board and senior management oversight
Appropriate policies, procedures and limits
Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks
Appropriate management information systems
Comprehensive internal controls
Risk Management Architecture
o Independent business functions, risk management and compliance and internal audit roles
○ Annual risk strategy defined based on risk appetite aligning risk, capital and performance
targets
o Focused management of all major risk classes through dedicated committees:
·
Credit risk management committee
•
Market risk division (interest rate risk, liquidity risk)
Operational risk and business continuity management committee
Information security governance committee
○ Appropriate representation of risk function on management committees to ensure risk view is
factored into business decisions
Business continuity plan
o Implemented in March 2020; Business continuity plan involves creation and implementation of
strategies that recognize threats and risks that ESAF SFB may be subject to, with a focus on the
protection of personnel and assets, while maintaining continued operations in the event of a
disaster
o Created an executive-level crisis management and quick response team that is responsible for
initiating immediate actions in the event of occurrence of a crisis and to guide the business
units on steps to be taken to protect its assets and to ensure continuity of business
o These plans and processes are periodically reviewed to ensure that they are effective and
functional.
6.7%
3.9%
7.8%
3.9%
2.5%
2.6%
1.1%
1.2%
Mar-21
Mar-22
GNPA
Mar-23
NNPA
Sep-23
Asset quality
70.5%
4.8%
59.4%
56.7%
52.8%
Mar-21
Mar-22
Mar-23
Sep-23
Mar-22
PCR
0.7%
Mar-23
As % of Gross Advances
Restructured Standard Advance
0.2%
Sep-23
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