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Informist, Wednesday, Apr. 29, 2026

By Shumaila Firoz

MUMBAI – Jana Small Finance Bank Ltd. posted a rise in its net profit for the March quarter on the back of a sharp rise in interest earned and rise in income on investment. The net profit rose despite a sharp rise in its total expenditure and provisions. The small finance bank surpassed estimates of ICICI Securities Ltd., the sole brokerage tracking the company.

The bank reported net profit of INR 1.40 billion for the March quarter, up over 13% on year. The reported profit was higher than INR 1.28 billion projected by ICICI Securities. The bank's interest earned for the quarter ended March rose over 22% on year and over 5% on the quarter to INR 14.45 billion, meanwhile its income on investment rose over 50% on year to INR 1.29 billion for the reporting quarter. Its total income rose by nearly 21% on year to INR 17.10 billion for the reporting quarter.  

The lender's provisions during the March quarter were INR 1.95 billion, up nearly 24% on year, weighing on the bottom line, but down nearly 27% sequentially. Gross non-performing asset ratio declined to 2.46% from 2.59% in the previous quarter, while the net NPA ratio eased to 0.92% as of Mar. 31 from 0.94% a quarter earlier. The bank maintained a provision coverage ratio of 63.10% during the quarter. The capital adequacy ratio under Basel-II norms was 19.38% as of March end. 

A rise in expenses also impacted profitability. The bank's operating expenses grew nearly 24% on year to INR 6.66 billion. Employee costs increased over 17% on year to INR 3.84 billion, while other operating expenses rose over 34% to INR 2.82 billion. Interest expended increased nearly 18% to INR 7.09 billion.

The bank's net interest income rose to INR 7.36 billion from INR 5.81 billion on year. However, it was above analysts' estimate of INR 6.80 billion. Net interest margin was at 7.2%, compared with 6.6% a quarter ago. Loan growth was led by its secured portfolio. The bank reported an increase in advances of 23% on year, with the secured book now forming 72.6% of total advances, reducing portfolio risk. The lender's deposits rose 23% on year to INR 357.84 billion as of Mar. 31. For the reporting quarter, its cost of funds was 7.46% against 8.03% in the year-ago quarter. 

The bank's slippages for the reporting quarter were lower by 24% from the previous quarter and lowest in the year. Deposit books grew by 23% on year and its costs of deposit fell 20 bps sequentially.

The bank's net profit for 2025-26 (Apr-Mar) fell nearly 35% on year to INR 3.26 billion and total income grew over 17% at INR 63.75 billion. Wednesday, shares of the bank closed over 5% lower at INR 466.15 on the National Stock Exchange. The bank announced its financial results post-market hours.  End

Edited by Akul Nishant Akhoury

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