Jana SFB’s Q1 net profit jumps 90%; stock tumbles ~7%

23 Jul 2024 , 10:31 AM

Jana Small Finance Bank, located in Bengaluru, announced a 90% year-on-year (YoY) increase in net profit to ₹171 Crore for the first quarter of 2024. Jana Small Finance Bank reported a net profit of ₹90 Crore for the quarter, according to a regulatory filing.

The company’s counter opened at ₹690. However, later in the day, it erased early morning gains, and slipped as much as 7% to an intraday low of ₹647.

At around 10.22 AM, Jana SFB was trading 5.76% lower at ₹654.85 on NSE.

Net interest income (NII), which is the difference between the interest revenue a bank receives from its lending activities and the interest it pays to depositors, surged 32%, reaching ₹610 Crore from ₹462 Crore in the same quarter of FY24.

Gross non-performing assets (NPAs) stood at 2.62% in the June quarter, compared to 2.11% in the March quarter. Net NPAs were 0.99%, compared to 0.56% in the previous quarter.

Jana Small Finance Bank’s loan assets under management (AUM) hit ₹25,759 Crore, a 25% YoY increase. The bank’s advances increased by 25% year on year and 4% quarter on quarter, with secured loans expanding by 8% sequentially and unsecured loans declining by 1%, resulting in a secured loan book of 62%, up from 60% in March 2024.

Total deposits increased by 41% YoY and 5% QoQ to ₹23,710 Crore. CASA deposits of ₹4,846 Crore, up 47% YoY and 9% over the previous quarter. The CASA ratio increased to 20.4% from 19.7% in March 2024. The bank’s term deposits (TDs) increased 40% year on year and 4% quarter on quarter.

Jana Small Finance Bank maintained an excellent capital adequacy ratio (CRAR) of 19.3%, with a Tier-1 CRAR of 18.2% and an LCR of 296%. Including the interim profit for Q1 FY25, the CRAR increased to 20.2%, with tier-1 CRAR at 19.1%. The bank’s cost-to-income ratio was 55.5%, with a return on assets (ROA) of 2.1% and a return on equity (ROE) of 18.8%.

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