The ESAF ESG score has been upgraded from 75.4 to 77.6 by CareEdge ESG Ratings Limited following its annual review and surveillance, ESAF Small Finance Bank said in a BSE filing dated October 2, 2026. The agency retained the bank's CareEdge-ESG 1 rating.

The bank reported October 1, 2026, at 4:53 pm as the time of occurrence of the development. It submitted the disclosure under Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The assessment cited the bank's disclosures, policies and performance in managing environmental, social and governance risks. CareEdge also highlighted workforce diversity, financial inclusion and sustainability as factors supporting the rating.

Social inclusion and governance support assessment

According to the rating rationale reproduced in the filing, ESAF allocated CSR funds above the regulatory requirement. The agency said this supported social upliftment and local economic growth.

CareEdge also considered long-term strategies and initiatives across the bank's ESG functions, which it expects to contribute to a transition in sustainability performance. Its assessment highlighted the following governance and operational practices:

  • Compliance with SEBI and Companies Act requirements, supported by board-approved policies on sustainable banking, cybersecurity, whistleblower protection and a code of conduct.
  • Extension of several policies to suppliers and vendors, alongside a customer service framework.
  • An ISO/IEC 27000-certified cybersecurity framework, ISO 9000 certification, a zero data breach record and regular internal audits, as cited in the rationale.

Climate risk framework remains under development

The agency noted that ESAF has developed elements of its climate governance and risk assessment framework. These include a draft climate risk policy, a governance report, a strategy document and a physical risk assessment.

Further enhancements to targets, metrics and disclosures are expected in line with evolving regulatory developments, according to the rationale. While select policies have undergone external evaluation and external experts have supported climate-related frameworks, broader independent review coverage remains evolving.

The bank said the complete rating rationale is available on its website and the rating agency's website. ESAF trades under BSE scrip code 544020 and NSE symbol ESAFSFB.