Earnings Review
Jana Small Fin Bank's net profit falls on rise in expenses
This story was originally published at 19:52 IST on 17 October 2025
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--[I] Jana Small Fin Bank Jul-Sept PAT INR 749.91 mln
--[I] Jana Small Fin Bank Jul-Sept PAT INR 749.91 mln vs INR 967.18 mln year ago
--[I] Jana Small Fin Bank Jul-Sept total income INR 15.52 bln vs INR 13.42 bln
--[I] Jana Small Fin Bank Q2 provisions INR 2.04 bln vs INR 2.10 bln yr ago
--[I] Jana Small Fin Bank Apr-Sept PAT INR 1.77 bln vs INR 2.67 bln year ago
--[I] Jana Small Fin Bank Apr-Sept total income INR 30.68 bln vs INR 26.98 bln
--[I] Jana Small Fin Bank net NPA ratio 0.94% as on Sept 30, unch on qtr
--[I] Jana Small Fin Bank gross NPA ratio 2.87% as on Sept 30 vs 2.91% qtr ago
--[I] Jana Small Fin Bank Basel II capital adequacy ratio 19.72% as on Sept 30
By Janwee Prajapati
MUMBAI – Jana Small Finance Bank's net profit for the September quarter fell due to a surge in operating expenditure. The lender's net profit fell 22.5% on year to INR 749.91 million. Sequentially, the net profit was down over 26%. The lender underperformed the Street view as analysts had estimated the net profit at INR 767 million.
The bank's operating expenditure grew nearly 25% on year to INR 5.87 billion in the September quarter. Of this, employee costs increased 20% on year to INR 3.56 billion, while other operating expenses were up over 32% at INR 2.31 billion. Interest expenditure rose almost 20% to INR 6.86 billion, further adding to total expenses.
A fall in the bank's provisions limited the decline in net profit. The bank's provisions and contigencies fell 3% on year to INR 2.04 billion in the September quarter. The percentage of gross non performing assets to gross advances fell to 2.87% from 2.97% and the net non performing asset ratio fell to 0.94% from 0.99% a year ago.
The bank's total unsecured loans and advances fell 6.8%, whereas agricultural loans under the individual loans category rose 25.3% on year. The bank reported a pre-provision operating profit of INR 2.78 billion, down 6.6% on year. The Basel-II capital adequacy ratio was 19.72% as on Sept. 30.
Total income of the bank rose 15.7% on year to INR 15.52 billion in the September quarter. Interest earned rose almost 12% on year to INR 13.05 billion. Other income was up almost 41% on year at INR 2.47 billion.
The bank's net interest income grew marginally on year to INR 6.18 billion in the September quarter. The lender underperformed analysts' expectations as they had expected the net interest income to rise to INR 6.37 billion.
The bank reported total revenue of INR 25.36 billion for Jul-Sept. In terms of segment-wise revenue, the retail segment had the highest share of INR 20.65 billion, the treasury segment reported revenue of INR 3.50 billion, corporate banking reported revenue of INR 970.67 million, and other banking operations reported revenue of INR 244.58 million.
The bank's total secured advances rose over 34% on year to INR 229.4 billion. Deposits grew 31% to INR 325.32 billion as on Sept. 30. The current account to savings account ratio of the bank rose to 18.3% in Jul-Sept from 17.8% a quarter ago. On Friday, shares of Jana Small Finance Bank ended over 2% lower at INR 450.50 on the National Stock Exchange ahead of the earnings. End
Edited by Avishek Dutta
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