Jana Small Finance Bank Ltd Management Discussions

INDUSTRY STRUCTURE, OPPORTUNITIES, OUTLOOK AND THREATS

In 2025, the global economy displayed resilience with 3.4% growth against 3.3% last year amidst high tariffs, elevated policy uncertainty, rising public debt and geo political tension. These headwinds are largely offset by frontloading of import, supply chain realignment and a surge in AI related investment. The outlook of global economy points to moderate expansion at 3.1% below its long-term average of 3.7%. The evolving growth inflation dynamics post West Asia war may require central banks to carefully balance the objective of containing inflation against the need to minimise adverse spillovers on growth.

India remained the fastest major growing economy, expanding at 7.8% during 2025-26 vs 7.1% last year, supported by strong consumption, sustained investment, proactive policy initiatives and sound macroeconomic fundamentals. Inflation remain low during major part of the year. Credit growth posted a double-digit growth. A modest current account deficit and adequate forex reserve provided stability on external front.

In 2026-27 Domestic economy is likely to remain resilient, despite challenging external environment due to elevated energy and commodity prices, rising logistic costs, volatility in global financial markets. Indian economy is likely to remain on sound footing due to robust domestic demand, lower dependency on export and a stable policy environment. The weakening rupee and prolonged West Asia war having a lot of pressure on fuel prices and other importing commodities, but this is good opportunity to switch to electric based appliances for transportation and other purposes. Considering these factors and adverse impact of the West Asia conflict would remain contained in near term, real GDP growth for 2026-27 is projected at 6.9% with risk tilted to downside.

The Indian banking system is expected to remain resilient, supported by prudent regulatory reforms, stable credit growth and adequate capital buffers. However, lingering geo political tension and supply chain disruptions may post near term risks to corporate earnings and the performance of the loan portfolios. Elevated sovereign yields may also exert pressure on financial institutions investment portfolios. The rate trajectory is most likely to go higher and that may put pressure on resource mobilisation and asset origination. Nonetheless, on balance, supported by sound fundamentals and healthy balance sheets, the domestic financial system has sufficient buffers to withstand adverse shocks.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Net Interest Income has grown to J2,593 crores in FY26 from J2,355 crores in FY25, up by 10.13% YoY. The Bank has earned profit before tax (PBT) of J326 crores for the FY26, as compared to J474 crores in FY25. Profit after tax (PAT) stood at J326 crores in FY26 as compared to J501 crores in FY25. Bank had not recognised any DTA in FY26 vs. J30 crores of DTA recognized in FY25. Banks AUM Portfolio witnessed a jump of 23% from J29,545 crores in FY25 to J36,289 crores in the FY26. Our Secured AUM grew by 28% year-on-year basis and constituted to almost 72.6% of the AUM. Our Deposits stood at J35,784 crores which grew by 23% Y-o-Y. The Retail Deposits including CASA constituted to 62.6 % of the overall deposits of the Bank. The Capital Adequacy Ratio ("CRAR”) was 19.38% as at March 31, 2026 (March 31, 2025: 20.68%), well above statutory minimum requirement of 15%. Cost to Income ratio for FY26 was 68% as compared to 62% for FY25.

Return on Assets of the Bank for FY26 was at 0.8% compared to 1.5% in FY25. The number of banking outlets stood at 822 in March 2026 from 802 in March 2025. Our asset quality remained robust, with GNPA at 2.46% (vs. 2.71% in FY25) and NNPA at 0.92% (vs. 0.94% in FY25).

Profit & Loss summary

Particulars	FY 2025-26	FY 2024-25
Net Interest Income	2,593.12	2,354.65
Other Income	1,021.90	775.86
Net Total Income	3,615.02	3,130.51
Operating Expenses	2,449.36	1,942.63
Operating Profit	1,165.66	1,187.89
Provisions and Contingencies	839.24	714.21
PBT	326.43	473.68
Provision for Tax	0	-27.74
PAT	326.43	501.42

Profitability: Profit After Tax (PAT) of the Bank is J326.43 crores in FY 2025-26 as compared to J501.42 crores in FY 2024-25.

Earnings: Our total income (Interest income + Other income) is increased by 17.03% from J5,447 crores in FY 2024- 25 to J6,375 crores in FY 2025-26, mainly due to increase in interest income by 14.6%. Our net interest income grew by 10.13% from J2,355 crores in FY 2024-25 to J2,593 crores in FY 2025-26, primarily due to a robust 23% growth in AUM Portfolio.

Net Interest Margin: Our Net Interest Margin reduced to 6.7% in FY 2025-26 from 7.6% in FY 2024-25, primarily due to increase in secured portfolio mix.

Key ratios

The following table sets forth, for the periods indicated, the key financial ratios:

Particulars	FY 2025-26	FY 2024-25
Return on average equity (%)1	7.6%	13.0%
Return on average assets (%)2	0.8%	1.5%
Net interest margin (%)	6.7%	7.6%
Cost to income (%)3	67.8%	62.1%
Debt Equity Ratio	1.23	0.94
Provision coverage ratio4 5	63.10%	66.09%
Basic Earnings per share (J)	31.02	47.89

1. Return on average equity is the ratio of the net profit after tax to the quarterly average equity share capital and reserves.

2. Return on average assets is the ratio of net profit after tax to average assets.

3. NIM calculation do not include Interest on Income Tax Refund.

4. Cost represents operating expenses. Income represents net interest income and non-interest income.

5. Provision coverage ratio does not include technical write offs. Including technical write off, Provision coverage ratio is 76.01% (March 31, 2025: 80.23%)

Non - Interest Income

Rs. Crores

Particulars	FY 2025-26	FY 2024-25
Commission, exchange and brokerage	765.93	552.70
Profit on sale of Investments	58.51	23.05
Profit / (loss) on sale of land, buildings and other as- sets(net)	-0.46	-0.30

Non - Interest Income

Rs. Crores

Miscellaneous Income	197.92	200.42
Of which:
Profit on Sale of Assets to ARC	83.68	98.43
PSLC income	73.25	72.39
Recoveries from written off accounts	40.31	25.60
Lease income	0.00	0.00
Others	0.68	4.00
Total Non - Interest Income	1,021.90	775.86

Balance Sheet

Rs. Crores

Particulars	FY 2025-26	FY 2024-25
Capital	105.32	105.06
Employee Stock Option Outstanding	36.63	26.74
Reserves and Surplus	4,328.25	3,986.55
Deposits	35,784.49	29,119.78
Borrowings	5,496.76	3,866.82
Other Liabilities and Provisions	1,696.27	1,361.95
Total Liabilities	47,447.73	38,466.90
Cash and balances with RBI	2,492.17	2,816.06
Balances with banks and money at call and short notice	66.01	1,643.26
Investments	9,812.00	5,944.58
Advances	33,827.69	27,155.48
Fixed assets	198.69	153.18
Other assets	1,051.18	754.34
Total Assets	47,447.73	38,466.90

Deposits: Our deposits base grew by 23% to J35,784 crores in FY 25-26 from J29,120 crores in FY 24-25.

Rs. Crores

Particulars	FY 2025-26	FY 2024-25
I. Demand deposits
i. From banks	340.43	230.74
ii. From others	1,013.15	1,195.08
II. Savings bank deposits	5,064.61	3,809.48
III. Term deposits
i. From banks	10,893.74	8,051.48
ii. From others	18,472.56	15,832.99
Total Deposits	35,784.49	29,119.78
From Banks	11,234.17	8,282.22
From others	24,550.32	20,837.56

Rs. Crores

Sectors	FY 2025-26	FY 2024-25
Agriculture and Allied Activities	6,081.58	4,805.45
Industrial Sector	2,125.85	1,822.79
Service Sector	11,288.64	9,451.71
Retail Loans	14,866.02	11,570.94
Total	34,362.09	27,650.89

Non-Performing Assets

Rs. Crores

Particulars	FY 2025-26	FY 2024-25
Gross NPAs	846.95	749.60
% of Gross NPAs to Gross Advances	2.46%	2.71%
Net NPAs	312.54	254.18
% of Net NPAs to Net Advances	0.92%	0.94%

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

During the Financial Year 2025-2026, the bank continued to strengthen its human capital framework through focused investments in strategic workforce planning, leadership development, capability building, employee engagement, and retention initiatives aligned with the Banks growth aspirations and evolving business priorities. This year marked significant progress in building a future-ready, high-performing, and customer-centric workforce capable of supporting business expansion, digital transformation, and emerging product lines. We began the year with a clear and deliberate objective to elevate productivity as a cornerstone of leadership effectiveness and organizational growth. Guided by this focus, productivity was embedded into the core of our performance philosophy by integrating it into leadership scorecards and aligning incentive structures to reward tangible outcomes. This strategic emphasis strengthened accountability while laying the foundation for sustained performance and measurable business impact across the organization. Building on this emphasis, the Bank adopted a more disciplined and productivity-driven approach to growth, expanding headcount by 3.4% during the year compared to 16.4% growth in the previous year, demonstrating a clear shift toward operational efficiency, sharper execution, and improved output rather than workforce expansion alone.

To support new business initiatives and specialized products, the Bank identified and institutionalized key leadership and functional roles, Heads for specialized domains such as Trade Finance, Housing, Used Cars, Real Estate Financing, Agri Supply Chain Finance, Current Account and Government Business, ensuring stronger governance, domain expertise, and execution capabilities. Recognizing the increasing convergence of technology and banking, cross-functional groups were introduced, bringing together expertise across technology, product, business, and AI innovation hubs to accelerate collaborative initiatives and drive innovation across the Bank. The Bank adopted a talent acquisition strategy aimed at creating a diverse and future-ready workforce. Of the talent on boarded during the year, 33% comprised experienced professionals from banks, 36% from NBFCs, and 31% fresh graduates and early-career professionals, enabling an optimal mix of industry expertise, specialized financial services talent, and emerging talent. Human Resources also orchestrated innovative recruitment initiatives leveraging digital platforms and strategic partnerships to attract top-tier talent aligned with the Banks values and future aspirations. During the year, 5,250 hires were made through targeted recruitment campaigns, with LinkedIn contributing 233 hires and employee referrals contributing 4,227 hires. To enhance competitiveness in attracting and retaining talent, compensation-benchmarking exercises were undertaken, resulting in 96% alignment with competitive market compensation ranges. Further strengthening the future leadership pipeline, the Aspiring Bankers Programme inducted 30 young professionals to nurture future banking talent. The Bank also expanded the implementation of government apprenticeship initiatives including the National Apprenticeship Training Scheme (NATS) and National Apprenticeship Promotion Scheme (NAPS), supporting the training and upskilling of 728 young individuals and strengthening the Banks long-term talent pipeline.

In parallel, the Bank anchored its leadership development agenda in a structured and future-focused competency- mapping framework, recognizing that sustained performance requires clarity on not only what leaders deliver, but also how they deliver it. Competency mapping was established as a systematic framework to identify the skills, behaviours, and capabilities required across roles while enabling objective assessment of strengths and development gaps. Guided by this philosophy, the Bank defined macro and micro competencies mapped across all organizational levels ranging from individual contributors to senior leadership, ensuring increasing complexity and capability expectations aligned with career progression. This framework created a common language for talent assessment enabling better understand of strengths, identifying blind spots, and pursue focused development opportunities. More importantly, it established a unified leadership standard across the Bank and reinforced the cultural and behavioural principles central to organizational success. Competency mapping also served as the foundation for the Banks 360-degree feedback survey. The identified competencies were translated into measurable indicators incorporated into survey questionnaires involving self, managers, peers, and team members, enabling comprehensive multi-source feedback and deeper insights into leadership effectiveness and capability alignment.

These insights formed the basis for the Leadership Development Programme conducted in partnership with EQ Universe. The programme focused on key areas of emotional intelligence and leadership effectiveness including Self-Awareness & Personal Power, Others Awareness & Empathy, Managing Emotions and Building Resilience, and Managing Relations and Influence. More than top 100 leaders in the bank including National Heads, Zonal Heads, and MANCO members participated in in-person sessions conducted across Pune, Delhi, Bhubaneshwar, Chennai, and Bangalore, followed by one-on-one coaching and mentoring sessions. In addition, succession planning remained a strategic priority, with the Bank achieving 100% succession coverage for all senior leadership roles. Early identification and development of high-potential employees strengthened leadership continuity and reinforced employee confidence in transparent career progression opportunities.

The Bank also established a structured suite of early-career leadership development programmes designed to build a strong pipeline of future-ready banking professionals. The Management Trainee Programme inducted eight young professionals focused on developing future leaders through extensive training in core banking operations, banking products, and digital banking capabilities. Participants underwent rotational assignments across key verticals including Liabilities, Assets, Risk, and Collections, supported by mentorship from experienced leaders. The programme enabled accelerated progression from field roles to corporate functions within a year, equipping participants with a holistic understanding of banking operations and technology-driven financial solutions. The Executive Trainee Programme, inducted additional 18 young professionals and is designed for graduates with high leadership potential, provided structured exposure across sales, credit, customer relationship management, and operations to prepare candidates for future leadership roles such as Branch Head positions. In collaboration with the Manipal Academy of BFSI, the Aspiring Bankers Programme inducted 30 young professionals focused on grooming high-potential graduates into Premium Relationship Managers through classroom learning, internships, on-the-job training, mentorship, and performance-linked incentives. Collectively, these programmes created a robust talent development ecosystem integrating structured learning, experiential exposure, and leadership grooming.

Recognising employee engagement and retention as critical to organizational stability, productivity, and long-term performance, the Human Resources team continued strengthening people-focused initiatives aimed at improving employee experience across the employee lifecycle. During the year, emphasis was placed on creating stronger on boarding experiences, increasing support for new hires, and enhancing employee reward and recognition initiatives to foster a more engaged workforce. A key initiative was the implementation of an in-house on boarding feedback framework designed to capture employee experiences at 30, 90, and 180 days, acting as a structured mechanism to identify on boarding challenges, engagement gaps, and areas requiring intervention. Sustained focus on employee engagement at the 180-day mark improved significantly to 72% for new hires, indicating stronger employee integration and satisfaction during the crucial early stages of employment. To further support new hires, the Bank increased its focus on mentoring and coaching programmes to ensure guidance, support, and stronger organizational exposure during the transition period. These interventions accelerated integration, improved role clarity, strengthened employees connection with the Bank, and contributed to improved retention of new hires with attrition reducing to 2.7%.

In addition, the Bank launched a formal mentoring programme pairing experienced and senior employees with new hires to facilitate knowledge sharing, smoother cultural integration, and accelerated capability development. Rewards & Recognition and Family Connect initiatives were also expanded significantly during the year, increasing by 20% and 45% respectively compared to the previous financial year. During the year 1,257 Family Connect programmes were conducted with participation from 23,829 family members, while 7,019 employees were recognized and rewarded for their contributions and achievements. These initiatives strengthened employee belongingness, appreciation, engagement, and trust across the organization. The Banks retention framework continued to extend beyond financial incentives, emphasizing career mobility, continuous learning, recognition, employee well-being, and an inclusive workplace culture where employees feel valued and supported.

Managing attrition and strengthening workforce stability remained a critical focus area during the year with targeted interventions aimed at improving employee retention, career progression, and productivity. Annualized attrition reduced significantly at the end of FY24-25 to 36.2% at the end of FY25-26, reflecting the impact of focused retention initiatives and strengthened people management practices across business functions. A key contributor was the 24.2% increase in employee retention compared to the previous financial year, driven by sustained efforts to improve employee engagement, career opportunities, and organizational support. Overall, voluntary attrition stood at 26.4%. Focused frontline interventions also contributed to reduction in attrition, reflecting increased attention towards role support, engagement measures, and retention strategies for customer-facing and critical positions. At the same time, exits among low-performing employees increased, reflecting continued emphasis on performance management and productivity alignment.

To enhance career pathways and retain high-potential talent, fast-track promotion pathways were introduced within Branch Banking and Affordable & Micro Housing Loan functions. Through this initiative, 244 employees received fast-track promotions during FY25-26, improving internal mobility, employee morale, and performance-linked career progression. Collectively, these initiatives demonstrate a structured approach toward attrition management by balancing retention of key talent, creation of growth opportunities, and strengthening productivity. Effective people practices and focused interventions have positioned the Bank competitively in terms of attrition management across the banking industry.

Diversity and inclusion continued to remain central pillars of the Banks organizational identity and long-term strategy. By fostering a culture that celebrates differences and encourages diverse perspectives, the Bank strengthened innovation, creativity, collaboration, and responsiveness to evolving customer needs. A diverse workforce enabled the Bank to better navigate industry complexity, enhance problem-solving capabilities, and strengthen adaptability in a rapidly changing financial environment. Overall diversity improved by 4.2% compared to the previous financial year, reinforcing the Banks commitment to building an inclusive and equitable workplace where employees can thrive and contribute meaningfully.

At Jana, we firmly believe that our people are the cornerstone of our long-term success. Throughout FY 2025-2026, the Bank made deliberate and sustained investments in workforce capability, leadership development, employee engagement, diversity and inclusion, on boarding excellence, and retention initiatives. These efforts reflect a comprehensive and forward-looking people strategy aimed not only at improving productivity and reducing attrition, but also at building a resilient, future-ready, and high-performing organization aligned with the Banks long- term vision. Overall, these initiatives reflect the Human Resources team has continued commitment to improving employee experience, strengthening the Banks culture and proactively mitigating risks related to disengagement and attrition through structured and people-centric management practices. As the Bank moves forward, we remain committed to strengthening our leadership pipeline, enhancing employee experience, nurturing innovation, and evolving our people practices to meet the demands of a dynamic banking environment while continuing to build a strong, collaborative, and inclusive workplace that drives sustainable growth and delivers long-term value for all stakeholders.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

For Liabilities:

Jana bank offers all forms of Liability accounts i.e. Savings, Current, Fixed and Recurring. Deposits form an integral part of any banking operation and building granularity in deposit building is of paramount experience

? In liabilities, we cater to all types of clients i.e.

o Individual: Senior Citizens, Non Resident Individuals (incl. OCI holders), Resident Individuals, Minors, etc.

o Non - individuals: Sole Proprietors, Private Limited company, Partnership company, Public Limited company, TASC, Government organisations, etc.

As on 31st March 26, Liability book growth details are as follows:

? CASA deposit grew by 23% yoy ? TD deposits grew by 23% yoy ? CASA ratio stands @ 18%

(Rs. In Crore)

Product	Mar-26	Mar-25	YTD Growth	Growth %
CASA BALANCE	6,418	5,235	1,183	23%
TD BALANCE	29,366	23,884	5,760	23%
Total Deposits	35,784	29,120	6,548	23%

For Affordable Housing:

Affordable Housing remains a structurally robust opportunity, anchored by government policy. The Pradhan Mantri Awas Yojana (PMAY) has sanctioned 1.25 crore houses — with 13.67 lakh under PMAY-U 2.0 — and delivered 97.3 lakh units. The EWS/LIG segment accounts for 39% of inclusion-led housing demand. Financing is further catalysed by INR 312 crore in Interest Subsidy Scheme pay-outs (benefiting over 70,000 households) and INR 615 crore in guarantees under the CRGFTLIH scheme for thin-file borrowers.

The Housing Loan portfolio increased from 6,136 in March 2025 to 8,174 in March 2026, recording a 33% year-on- year growth. The growth reflects sustained demand in the housing finance segment, supported by strong customer acquisition, increased home ownership aspirations, and focused lending efforts. The portfolio continued to grow steadily, contributing significantly to the overall retail asset book.

(Rs. In Crore)

Product	March 26	March 25	Growth
Housing Loans	6,136	8,174	33%

For MSME:

MSME sector plays a vital role by contributing significantly to economic growth and creating employment opportunities. India has ~790 lakh micro, small and medium enterprises contributing to almost a third of countrys GDP. They contribute over 31% to GDP, 48.58% to exports, and support livelihoods for nearly 32.8 crore people across the country.

Source: Press Information Bureau Government of India 14th May26

Complete suite of offerings under Commercial Banking unit is offered to MSMEs and corporates designed to simplify financial management, support business growth, and meet the diverse needs of MSMEs and corporates.

• Term Loans and Overdraft limits for Business needs

• Cash Credit Facilities for working capital needs

• Machinery Purchase Loans

• Supply Chain Finance Limits

• Commercial Real Estate

• Bank Guarantees

• Credit facilities for NBFCs

• Customized Current Accounts designed for MSME Need

• Enhancing digital banking capabilities for MSMEs through CIB and Mobile Banking As on 31st March26

AUM - Asset Book: INR 5,281 Crores (YTD Growth of 23%)

For Two wheeler

Two-Wheeler Finance is experiencing structural ticket inflation as a growth lever. Industry volumes in FY26 hit historic highs at 2.17 crore units, up 10.7% YoY with a strong second-half rebound of 21.5%. Average ticket sizes have risen from INR 86,000 in FY21 to INR 1.15 lakh in FY25, and loans above INR 1.5 lakh have doubled from 6% to 15% of originations. Scooters lead the segment with 26% YoY growth and approximately 35% market share, driven by urban mobility demand and rising female and family financing.

The historical roots of the Indian two-wheeler industry run deep, with motorcycles and scooters being the cornerstone of personal mobility for decades. The two-wheeler market in India is witnessing a paradigm shift, fuelled by the rise of new-age EV start-ups such as Ola Electric and Ather Energy.

Jana Small Finance Bank provides loan for purchasing Two Wheeler/ Electric Two Wheeler to Existing & New to Bank Customers. As of 31st March26 TW Portfolio book: - 1,709 Crores (YTD growth of 71%).

(Rs. In Crore)

Product	March 26	March 25	Growth
Two Wheeler Loan	1,709	1,002	71%

For Used Car

The used car market in India has industry GMV exceeding Rs. 62,000 crore annually. SUVs now represent over 40% of new car market sales. Female borrowers constitute 18% of total disbursals. The dealer network — 600+ dealers across 6 states — has been built rapidly, and online aggregators now contribute 20%+ of total business volume. The average borrower age is 35 years, and credit score concentration is heavy in the 700-800 range. Conservative LTV demand of 74% till March 2026 was maintained.

Janas entry into the Used Car Loan (UCL) segment has produced highly encouraging early evidence. Approximately Rs. 91 crore disbursed to over 1,400 NTB customer

(Rs. In Crore)

Product	March 26	March 25	Growth
Used Car Loan	91	NA	NA

For Microfinance

Jana Bank offers small ticket size loans (primarily MFI) to its customers through its Retail financial services vertical in the forms of Agri Group Loans, Group loans, Individual loans and Gold loans, these loans are offered to the customers who are unbanked/underbanked to bring them into the formal financial banking fold

1. Agri Group loan: Loan offered to the group of customers under JLG model to customers involved in Agri/ agri allied activity in predominantly Rural/Semi Urban location

2. Group loan: Loan offered to the group of customers under JLG model to customers in predominantly Urban/metro location

3. Individual loan: Individual loans offered to a graduated customers who has taken a Group/Agri group loan

(Rs. In Crore)

Product	March 26	March 25	Growth
AGRI LOAN	1,410	2,229	-37%
GROUP LOAN	1,888	1,086	74%
INDIVIDUAL LOAN	6,376	5,598	14%
Total	9,674	8,912	9%

Gold Loan:

Indias gold loan market is expanding rapidly, projected to exceed ?15 lakh crore by FY27. Public sector banks lead with a 63% share, while NBFCs cater mainly to higher-ticket retail loans. The unorganized sector, however, still controls 63% of the overall market. Despite high gold ownership, only 5.6% of household gold is currently monetized, signaling significant untapped potential for growth. We provide loans under the following categories:

Agricultural and non-Agricultural end-use, empowering individuals across various sectors.

Product	March 26	March 25	Growth
GOLD LOAN	2,358	980	141%

This strong performance reflects increased customer demand, effective business sourcing efforts, and the growing preference for secured lending products. The portfolio expansion has contributed positively to business volumes and market penetration during the period.

TPP function:

Jana Bank is registered as corporate agent with IRDAI for solicitation of Insurance business. The Bank offers multiple products across Life & Non-Life Insurance to its asset as well as retail branch banking customers.

The Bank is currently tied up with 3 Life Insurance (ICICI Prudential Life, Bajaj Life & Kotak Life) and 3 Non-Life Insurance (ICICI Lombard, Bajaj General & SBI General Insurance) partners. Solicitation of Insurance is restricted to Jana Banks customers and is purely on voluntary basis.

1. Credit Life Insurance: Credit Life Insurance product if offered to Banks loan customer across RFS, AHL & MHL, TW & MSE vertical.

2. Non-Life Group Insurance: The Bank also offers multiple Non-Life Insurance products like Hospicash Insurance, Credit linked health plans, Collateral policies etc to its loan customers.

3. Retail Life Insurance: Bank offers various categories of life insurance plans like Traditional, term, ULIPs, Guaranteed Benefits plan etc to its customer in Branch Banking. The solicitation is done by certified staff as per extant regulations and restricted to Jana Banks customer only.

4. Retail Non-Life Insurance: The Bank also offers various solutions to its Branch Banking customer across Non- Life Insurance which typically includes Health Policies, Motor Insurance, Fire Insurance, Travel Insurance, Liability Insurance etc.

Type	2024-25	2025-26	YTD Growth	Growth %
Credit Life	276.43	211.86	-64.57	-30%
Non-Life Group	67.17	68.42	1.25	2%
Retail Life	40.4	55	14.6	27%
Retail General	19.3	51.59	32.29	63%
Total	403.3	386.87	-16.43	-4%

 

Persistency	2024-25	2025-26	Growth%
LI Persistency	70%	68%	-2.34%

Strengthening Digital Investment & Wealth Management Offerings

During FY 2025-26, the Bank significantly enhanced its digital investment ecosystem by launching a Digital Mutual Fund Platform on Mobile Banking and Internet Banking, enabling customers to invest seamlessly through a digital journey. The Bank also introduced IPO application services through ASBA on its digital channels, expanding customer access to capital market investment opportunities.

To strengthen its investment offerings, the Bank on-boarded an additional Asset Management Company (AMC), taking the total number of AMCs available on the platform to eight, thereby providing customers with a wider and more diversified range of mutual fund investment options.

Building on these achievements, the Bank plans to further expand its investment product suite and partnership network in FY 2026-27, reinforcing its commitment to delivering comprehensive digital wealth management solutions and enhancing fee-based income opportunities.

Details	FY 2023-24	FY 2024-25	FY 2025-26
Demat & trading	1653	112	145
MF AUM	0	17 Cr	41.63 Cr

 

IPO ASBA	Total Unique Bids (Count)	Block Amount
FY 25-26	18257	1520 Cr

To accelerate growth in fee-based income, the Bank expanded its investment and wealth management offerings through strategic partnerships, enabling customers to access a comprehensive suite of demat, trading, mutual fund, and capital market investment solutions.

For Payments & Cards:

Jana Bank offers various digital assets to the customers for their ongoing Payment and Investment needs. Various Payment products like UPI, IMPS, RTGS, NEFT, Card Payments, and NACH are offered to the customers, which facilitate the CASA and TD growth for the Bank. These products not only facilitate payments for Liability Business but also Collection for the Loan Business, alongside we provide payment as service product to FIG segment under sponsorship

Value INR in crores. Please note that the NEFT and RTGS transaction volumes have reduced as UPI and IMPS, which are more preferred mode of payments, have overtaken them.

Product		FY2025-26	FY2024-25	FY2023-24
UPI	Volume	20,18,80,263	12,82,65,859	2,68,33,967
	Value	30,722.04	22,206.95	4,612.95
IMPS	Volume	67,56,128	46,00,713	13,49,742
	Value	8,378.47	8,804.93	2,892.34
RTGS	Volume	2,09,178	3,02,868	2,23,183
	Value	1,64,067.62	2,56,823.70	1,81,296.86
NEFT	Volume	21,33,494	47,03,388	29,86,954
	Value	38,351.56	34,648.68	23,695.03
Cards	Volume	68,46,181	51,26,037	51,18,841
	Value	2,520.80	2,285.77	2,470.28
Total	Volume	21,09,79,063	14,29,98,865	3,65,12,687
	Value	2,44,040.51	3,24,770.03	2,14,967.46

Value INR in crores. Please note for FY2025-26 all the credit and debit transaction are considered

• Jana Carded customer percentage is @ 84% in the last Financial year

• AEPS financial transactions volume for the financial year ending March 2026 was 3,61,009 including cash deposit, cash withdrawal and fund transfer amounting to INR 155 crore.

• Mobile Banking ranking on the Play store has reached 4.6, which continues to remain highest amongst the peer banks.

• YoY growth on Mobile Banking Activation is 65.9%

• Bank Merchant QR implementation were at 27,141 till financial year 2025-26 which is 10.68% increase than the preceding financial year with 35% activation rate.

• PoS installed at Jana Bank Merchant Locations for financial year 2025-26- 865

PoS transactions through installed machines at Jana merchant locations in the last financial year 2026 are 3,02,322 and value is INR 111 crore

BANKS INITIATIVES AND PROGRESS IN RESPECT OF EXTENDING BANKING SERVICES THROUGH BC MODEL

The Bank has set up a Business Correspondent (BC) Channel with an objective for greater financial inclusion and increasing the outreach of the banking sector to the underserved population in Unbanked Rural Centre / unserved Banking location, which helps, facilitate financial services.

As on March 31, 2026, the Bank has engaged with 29 BC partners having 104 BC Agents spread across 12 states facilitating customers with banking transactions and financial services as saving and deposit, individual and group loan with portfolio of Rs. 1,476 cr.

BANKING SERVICES FOR PERSONS WITH DISABILITIES

The Bank has implemented measures to ensure that persons with disabilities and visually impaired customers are able to access banking services on an equitable basis and without discrimination. To support financial inclusion and ease of banking, the following facilities are made available:

1. Ramp Facility

The Bank has provided ramp access at branches, wherever applicable, to facilitate safe and convenient entry and movement within branch premises for customers with mobility impairments, senior citizens, and wheelchair users. Branch staff are also available to provide assistance whenever required.

2. Website Access as per Accessibility Standards

The Banks website and digital channels are designed to support accessibility requirements and enable customers with visual or physical impairments to access information and banking services. Features such as screen-reader compatibility, keyboard navigation, magnifier etc. are incorporated, wherever applicable, to enhance usability.

3. Retail Loan Facilities

The Bank extends retail loan products to persons with disabilities and visually impaired customers based on the same eligibility, credit assessment, and risk evaluation criteria applicable to other customers. Loan applications are processed without discrimination, and necessary assistance is provided during the application and documentation process.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Banks Internal Audit function provides independent and objective assurance to the Board of Directors and the Audit Committee of the Board (ACB) on the adequacy and effectiveness of governance, risk management, internal controls, systems and processes. The Bank follows a Three Lines of Defence governance model, wherein the Internal Audit function operates as the third line of defence and independently evaluates the effectiveness of the control environment across the organisation.

The Internal Audit function has adequate authority, organisational stature, independence, skilled manpower, technological capabilities and co-sourced specialised resources, enabling Internal Auditors to discharge their responsibilities with objectivity and professional competence. The Chief Internal Auditor functionally reports to the Audit Committee of the Board, thereby ensuring organisational independence and unrestricted access to records, personnel and systems.

The Internal Audit function works in close coordination with the Risk Management and Compliance functions, while maintaining its independence. The Internal Audit Department formulates an annual risk-based audit plan using an appropriate risk assessment methodology that considers the Banks risk profile, business priorities, regulatory expectations, materiality, emerging risks and control concerns identified by the Management and the Audit Committee. The audit plan is reviewed and approved by the Audit Committee of the Board.

The Annual Audit Plan covers all Banking Outlets (including Business Correspondents), Central Functions, Outsourcing Arrangements, Credit Processes, Concurrent Audit Systems and Information Systems (IS). The plan is formulated in line with the regulatory guidelines and instructions issued by the Reserve Bank of India (RBI) and the Internal Audit Policy approved by the Bank.

The Internal Audit framework also covers cyber security, digital banking controls, information security governance, data protection and technology resilience. Information System (IS) audits form an integral part of the overall audit framework and cover system planning, organisation, acquisition/development, implementation, delivery, support and change management processes. The audits also evaluate process effectiveness, data integrity, system security and achievement of business objectives. IS audits are conducted periodically by qualified internal auditors, including CISA-certified professionals, and external CERT-In empanelled firms

In addition to regular audits, the Internal Audit function undertakes thematic reviews, focused audits, process reviews and surprise audits based on emerging risks, regulatory developments and business requirements. The function increasingly leverages data analytics, automation tools and continuous monitoring techniques to enhance risk identification, control assessment and audit effectiveness.

Significant audit observations, control weaknesses and thematic issues are escalated to the Senior Management and the Audit Committee of the Board on a periodic basis, together with management responses and timelines for remediation

The Internal Audit function maintains continuous engagement with regulators, management and other stakeholders to support improvements in policies, procedures, controls and regulatory compliance. The function is also subject to periodic quality assurance reviews to assess adherence to regulatory expectations, global internal audit standards and industry best practices, with a continued focus on strengthening audit quality, risk culture and early identification of emerging risks.

RISKS AND CONCERNS

Managing risk is fundamental to ensure the sustainable performance and organisational stability. Jana Small Finance Bank ("the Bank”) recognizes that risk management is integral to sound business practices and endeavours to ensure that risks are identified, assessed, measured (where possible) and managed in a timely manner.

Integrated Risk Management framework

The Bank adopts an integrated risk management approach in order to develop a comprehensive view of risks faced in its businesses. The Banks risk management framework aligns the risk and capital management to business strategies, aims to protect its financial strength and reputation and ensures support to business activities for adding value to customers while creating sustainable shareholder value. The Bank has a risk management structure that augments its risk evaluation and management capabilities while allowing it to stay nimble to adapt to the changing business and regulatory environment in an efficient and effective manner. The Board of Directors are responsible for the governance of risks and approves the Banks risk management policies. To ensure a focused approach, the Board has delegated the responsibility to Risk Management Committee of the Board, which reviews the implementation of risk management policies and monitors the risk mitigation measures. The Bank has various executive-level Committees such as Executive Risk Management Committee (Executive RMC), Asset Liability Management Committee (ALCO), Product Risk Management Committee (PRC), Functional Operational Risk Management Committee (FORC), Zonal Risk Management Committee (ZRMC), Customer Service Committee and Information Security Committee, among others, which meet periodically to review the risks comprehensively in the respective areas. The Bank also has an independent risk management function headed by the Chief Risk Officer.

Executive RMC is given the responsibility for governing all the Banks risks through a rollup of all risks for Risk aggregation, addressing corrective actions and to govern the corrective actions. The chairperson of the executive RMC is the CEO while CRO is a member and the convenor. Bank manages risks through a comprehensive framework of functional and unit KRIs for granular Risk self-assessment; review of KRIs and incidents by zonal-level committees and function-level committees for all enterprise processes.

Monitoring of KRIs

The Bank has identified over 242 KRIs over 12 functional verticals to monitor risk as part of the Operational Risk Management Framework. The thresholds for the KRIs have been finalised in consultation with the stakeholders. The threshold breaches are monitored by the zonal and functional level committees and aggregated to the Executive RMC for review and governance.

Incident reporting

Process gaps or unforeseen events resulting in operational risk are reported through an incident reporting process. These incidents are subsequently reviewed to identify the cause and take corrective action and preventive action, as applicable. The incident description, root-cause and corrective actions are presented to the Executive RMC for review and guidance to strengthen controls.

Outsourcing Risk

Outsourcing is defined as the Banks use of a third party (either an affiliated entity within the corporate group or an entity that is external to the corporate group) to perform certain activities on a continuing basis that would normally be undertaken by the Bank itself, now or in the future. Key activities undertaken for Outsourcing risk assessment include: on boarding risk assessment covering financial strength; review of outsourcing contracts by the legal team, reference checks from other principals using their services and review of internal controls and service quality and ongoing risk monitoring to ensure that the renewal and updation of contracts, review of performance and business continuity. Bank outsourcing Risk is governed by the Executive RMC.

Business Continuity Management (BCP)

Banks BCP framework aims to ensure continued service to customers during unforeseen adverse events. Banks BCP governance includes periodical Business Impact Analysis (BIA), BCP testing and outsourcing reviews to monitor its BCP preparedness on an ongoing basis. The Banks Business Continuity Plan is governed by Executive RMC. For IT and Information Security processes, there are well-defined BCP testing protocols along with roles and responsibilities for disaster recovery programs. For non-IT, BCP is tested through periodic drills conducted to test the effectiveness of alternatives and recovery plans. Bank outsourcing Risk is governed by the Executive RMC.

Credit Risk

The Bank has put in place prudent risk management practices to manage Credit risk, beginning with the development and monitoring of statistical scorecards to screen borrowers credit worthiness, sound collateral assessment practices, robust assessment of borrower limits through credit policies and underwriting practices, disbursal related controls, early warning reviews to detect early signs of stress, risk grading of borrowers after 6 months on books and monitoring of accounts, to make sure that the potential losses arising out of Credit Risk are minimised.

The Bank focuses on further strengthening its risk management framework and undertake several measures to strengthen the processes. The Banks Risk forums conduct an in-depth analysis of key portfolio segments to identify pockets of stress within sub-segments like geography, ticket size, and customer segment, among others, on a regular basis and based on the findings, actions were taken to ensure there is no dilution in the overall asset quality of the Bank. In addition, the Bank through the Risk forums conducts regular assessments of the Credit Scorecards to make sure that the Scorecard are discriminating the customers credit worthiness effectively. The Early Warning Signal framework supports the monitoring of Large Borrowers by reviewing qualitative and quantitative metrics to judge signs of stress. The Banks provisioning policy is conservation. In the past, Bank has been proactive in taking additional provisions to account for signs of stress wherever observed in the Banks portfolios. Stress testing forms an integral part of risk monitoring. The Bank carries out periodic stress testing to measure the effect of COVID, demonetization as well as other economic developments, to gain insights on the impact of extreme situations on the Banks risk profile, and capital position.

Operational Risk Management

Operational Risk is "the risk of loss resulting from inadequate or failed internal processes, people, systems or from external events. It excludes Strategic and Reputational Risks but includes Legal Risk”. Strategic and Reputational risks are second-order effects of Operational Risk. Legal risk includes, however, is not limited to, exposure to penalties, fines, punitive damages arising out of supervisory action, civil litigation damages, related legal costs and any private settlements. Bank has a framework of Functional Operational Risk Management Committee (FORC) chaired by the respective functional heads and Zonal Risk Management Committee (ZRMC) chaired by designated zonal heads to oversee the functioning, implementation, and maintenance of operational risk management activities in the respective functions and areas, The FORCs and the ZRMCs report to the Executive RMC.

ALM and Market Risk Management

Market Risk is defined as the possibility of loss to a Bank caused by changes in the market variables such as interest rates, credit spreads, equity prices, etc. The Treasury Middle Office (TMO) unit is responsible for identifying and escalating any risk, limit excesses on a timely basis. The unit is also responsible for establishing a comprehensive risk management policy to identify measure and manage liquidity and interest rate risk. The TMO unit monitors the investment portfolio and the daily activities carried out by Treasury along with the set risk tolerance limits as per market risk policy such as VaR, PV01, and Modified Duration. The impact of interest rate risk on trading books is actively measured using trading book risk metrics like PV01, duration etc. The Bank assesses interest rate risk in the balance sheet from both earnings and economic perspectives. Liquidity risk is assessed from both structural and dynamic perspectives, and the Bank uses various approaches like the stock approach, cash flow approach and stress test approach to assess liquidity risk. The risk team monitors the broad liquidity profile of the Bank through the Liquidity Coverage Ratio, Net Stable Funding Ratio and Structural Liquidity Statement.

Information Security Risk

The Bank has a robust risk management framework in place to identify, assess and manage information security risks and has made significant progress in enhancing its information security governance through monitoring at the IT steering and Information Security Committees. The Information Security Management System, Information Technology Division is certified on ISO/IEC 27001:2013 Standard by British Standard Institute (BSI)

The Banks information Security committee addresses information and cyber security-related risks. The function is governed by Board-approved policies on information security and cyber security. Bank carries out periodical awareness exercises to ensure employees are updated on information security practices. It has invested in strong technical and administrative controls to proactively prevent, detect, contain and respond to any suspicious activity. The Bank has deployed a layered security defence with the latest technology tools to defend and protect information and assets. These include but are not limited to next-gen firewalls, intrusion prevention systems and anti-DDoS, next-gen anti-malware, proactive defence through web application firewalls, periodic vulnerability and penetration testing, security architecture review and data security assessments. A security operation centre is in place, which monitors alerts and anomalies 24x7 in the Banks perimeter and internal network and systems. The Bank has put in place controls to ensure that security controls are on par with the defined standards. It periodically conducts phishing awareness and simulation exercises. Further, the advisories and alerts from regulators and CERT-In are acted upon to strengthen the Banks cyber and information security. The Bank also regularly participates in cyber drills conducted by the Institute of Development and Research on Banking Technology (IDRBT).

	For and on behalf of the Board
	For JANA SMALL FINANCE BANK LIMITED
	Chitra Talwar	Ajay Kanwal
Place: Bengaluru	Part-time Chairperson & Independent Director	Managing Director & CEO
Date: April 30, 2026	DIN: 007156318	DIN: 07886434