About ESAF Financial Holdings
ESAF Financial Holdings Private Limited is the Corporate Promoter of ESAF Small Finance Bank Limited and is a Non- Deposit taking Systemically Important Core Investment Company registered with the Reserve Bank of India.
ESAF
started it’s journey as an NGO during the year 1992, with a larger vision of sustainable
and holistic transformation of the poor and the marginalized. The success of Grameen
Bank in Bangladesh reinforced the vision of Shri. K. Paul Thomas the Founder of ESAF. In
1995, he launched Micro Enterprises Development (MED) services and it resulted in the
formation of ESAF Microfinance and Investments Pvt. Ltd., in 2008, giving importance of
financial component in holistic economic development of the poor and marginalized. ESAF
Microfinance and Investments Pvt. Ltd. was one of the pioneers in establishing a formal
and structured form of lending through forming mutually trusted groups at the village
level that could not only bring financial sustainability but also reinforced the fact
that ‘the poor of our country are trustworthy’. In the remote and unbanked/under banked
regions of the country, ESAF could cultivate a culture of financial discipline and also
improved the workers participation rate as women too joined the workforce or started
some income generation activity that could financially support their household.
Financial literacy mission started by ESAF could not only bring know-how on how to spend
wisely but also secure the future. ESAF has adopted a unique social business strategy,
with a triple bottom line approach, emphasizing on People, Planet and Prosperity.
The following are some of the highlights:
- For every rupee invested in ESAF, studies by international agencies revealed that the Social Return on Investment stood at Rs. 3.19.
- Some of the other changes brought about by ESAF are women’s access to employment, contribution to household income, access to and control over household resources, participation in household financial decision-making etc.
- ESAF could also gather a carbon offset of 20 million tones in the international market.
After evaluating the contributions and significance of ESAF in the development of rural and unreached segments of the nation, the Reserve Bank of India has been kind enough to issue an in-principle license to ESAF Microfinance and Investments Pvt. Ltd. to set up a new Small Finance Bank during October, 2015. After complying with the licensing conditions prescribed by the Reserve Bank of India and in terms of the RBI’s final license in November 2016, ESAF Small Finance Bank started the commencement of business on 10th March 2017. As per the RBI In-Principle Approval and RBI Final Approval, ESAF Microfinance and Investments Pvt. Ltd has, pursuant to the Business Transfer Agreement, sold its business undertaking comprising the lending and financing business undertaken as an NBFC-MFI and other business activities incidental thereto, to ESAF Small Finance Bank Limited. As per the licensing condition of ESAF Small Finance Bank Limited, the Company had to surrender the NBFC-MFI registration and register itself as an NBFC- Non-Deposit taking Systemically Important Core Investment Company with the Reserve Bank of India.
As part of the Core Investment Company registration with the Reserve Bank of India, the name of the company was thereafter changed to ‘ESAF Financial Holdings Private Limited’ and a fresh certificate of incorporation consequent upon change of name was issued on March 1, 2019.