ESAF Restructures, Absorbs 5,200 ESMACO Employees into Microloan Management

ESAF Small Finance Bank absorbed 5,200 employees from ESAF Swasraya Multi-State Agro Co-operative Society Ltd as part of a strategic restructuring to directly manage its microloan portfolio. The initiative aims to mitigate concentration risks and promote operational efficiency while continuing ESMACO's role in business operations at Customer Service Centers.

In a significant corporate shakeup, ESAF Small Finance Bank has absorbed around 5,200 employees from ESAF Swasraya Multi-State Agro Co-operative Society Ltd (ESMACO), marking a major step in its strategic business restructuring.

Previously managed by ESMACO through various banking outlets, the microloan portfolio will now be under the direct management of ESAF Small Finance Bank. This move is designed to mitigate concentration risks while still enabling ESMACO, a promoter group entity of the bank, to oversee operations at Customer Service Centers.

The restructuring aims to enhance ESAF's operational efficiency and risk management, explained Managing Director K Paul Thomas. Effective July 1, 2024, nearly 5,200 ESMACO staff transitioned into the bank, following board approval on June 14, 2024.

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