Dr. K. Paul Thomas Named Chairman of Sa-Dhan, Signalling Stronger Focus on Responsible Microfinance

Dr. K. Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank, has been named as the Chairman of Sa-Dhan, the Reserve Bank of India-recognised Self-Regulatory Organisation for the microfinance sector.

Sa-Dhan is one of India’s key industry bodies representing microfinance and impact finance institutions. It works closely with member organisations to promote responsible lending, financial inclusion and ethical practices in the sector.

The election was held during Sa-Dhan’s Annual General Meeting in Kolkata. At the meeting, members also approved the financial statements for FY 2025–26 and the budget for FY 2026–27.

After being elected, Dr. Thomas said he was honoured to lead Sa-Dhan at an important time for the microfinance sector.

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“I am honoured to lead Sa-Dhan at this important juncture for the microfinance sector. Together with the Board and member institutions, we will continue to strengthen responsible microfinance, foster innovation in financial inclusion, and build a stronger ecosystem that promotes inclusive and sustainable growth,” he said.

Along with Dr. Thomas’ appointment, the AGM also saw the election of new board members. H. P. Singh, Chairman and Managing Director of Satin Creditcare Network Ltd., and Mukul Jaiswal, Managing Director of Cashpor Micro Credit, were elected as new members of the Board. G. Kiran Kumar, Executive Director and CEO of Svamaan Financial Services Pvt. Ltd., was elected as Treasurer.

Dr. Thomas’ appointment is significant because of his long association with the microfinance and financial inclusion sector. He is widely known for his role in building ESAF from a grassroots social development initiative into a small finance bank.

ESAF began in 1992 as a non-governmental organisation focused on supporting poor and marginalised communities. In 1995, Dr. Thomas launched micro enterprise development services, which later became the foundation for ESAF’s microfinance journey. Over the years, ESAF expanded its work in rural and semi-urban India, eventually becoming ESAF Small Finance Bank.

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Before entering the microfinance space, Dr. Thomas worked with Indian Farmers Fertiliser Cooperative Ltd. for nearly 18 years. This experience gave him a strong understanding of rural communities, farmer livelihoods and the need for accessible financial services in underserved areas.

His election comes at a time when the microfinance sector is facing both opportunities and challenges. On one hand, microfinance institutions continue to play a major role in providing credit to low-income families, women entrepreneurs and small businesses. On the other hand, the sector is also under pressure to ensure fair lending practices, prevent borrower over-indebtedness and strengthen customer protection.

His appointment also highlights the growing importance of small finance banks and impact finance institutions in India’s financial inclusion journey. With his background in grassroots development, microfinance and banking, Dr. Thomas is expected to bring a balanced approach to Sa-Dhan’s leadership.

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For India’s microfinance sector, the new leadership comes at a crucial stage. The sector needs to grow, but it must also protect the interests of borrowers. Dr. K. Paul Thomas’ election as Chairman of Sa-Dhan is therefore being seen as an important development for the future of responsible and inclusive finance in India.