ESAF Small Finance Bank has moved into one of the top ESG tiers in the Indian banking sector, with CareEdge ESG Ratings upgrading the Bank’s score to 75.4. According to a BusinessLine report, this places ESAF in the CareEdge-ESG 1 category, considered a leadership position under the rating agency’s framework.
The new score marks a clear improvement from last year’s 68.1. According to CareEdge, the upgrade reflects stronger performance across environmental, social and governance parameters, along with better disclosures and risk-management practices. The agency described the Bank’s ESG standing as a “leadership position with best-in-class disclosures”.
CareEdge highlighted the Social pillar as ESAF’s strongest area, where the Bank secured a score of 82.6 — noticeably higher than the industry median. The agency pointed to ESAF’s community-focused programmes, its priority-sector approach and its women-centric financial-inclusion model as the factors that strengthened the Social score.
These assessments suggest that ESAF’s long-running focus on underserved segments continues to play a meaningful role in its ESG profile.
Responding to the upgrade, ESAF Small Finance Bank’s managing director and chief executive officer K. Paul Thomas said the rating reflects the Bank’s commitment to responsible banking and inclusive development. He added that sustainability remains a core part of the Bank’s mission, and the recognition reinforces its long-term approach to community impact.
With a score of 75.4, ESAF now ranks among the higher-performing institutions under the SEBI-regulated ESG rating framework. Analysts believe this positions the Bank as a purpose-driven financial institution with a stronger focus on transparency, sustainability and social progress, although the long-term impact of the improved score will depend on how the Bank continues to build on its ESG strategy.
