Jana Small Finance Bank achieves remarkable profit and AUM growth amidst economic recovery
In a significant financial update, Bengaluru-based Jana Small Finance Bank Limited has reported its highest ever profit after tax (PAT) for the nine months ending December 31, 2023. The bank’s PAT surged by 99% year-on-year to ₹348 crores, marking a significant milestone in its financial performance. This announcement was made following the approval of the unaudited financial results by the Board of Directors at their meeting on February 22, 2024.
The bank has witnessed robust growth across its business segments in the financial year 2024, with a 28% year-on-year increase in its business. Notable highlights include a 28.8% growth in Net Interest Income, reaching ₹1,536 crore in 9MFY24 from ₹1,193 crore in the previous year. The Loan Assets Under Management (AUM) also saw a substantial rise, with a 28.4% increase year-on-year, standing at ₹23,610 crore.
The growth trajectory of Jana Small Finance Bank has been impressive across various loan segments. The affordable housing book witnessed a remarkable growth of over 61% year-on-year, while the micro LAP loan book grew by 49%. The two-wheeler loan book almost doubled with a 98.9% increase, highlighting the bank’s diversified and resilient loan portfolio.
Jana Small Finance Bank Reports Record 9M PAT Increase of 99% in Dec 2023
Deposits have also seen a significant upswing, with total deposits growing by 36.5% year-on-year to ₹20,785 crore. The Current Account and Savings Account (CASA) deposits increased by 22.3% to ₹3,899 crore, demonstrating strong customer trust and banking stability.
The bank’s asset quality has shown notable improvement, with the Gross Non-Performing Assets (GNPA) ratio improving to 2.1% as of December 31, 2023, from 5.8% the previous year. Additionally, the bank has maintained a Provision Coverage Ratio (PCR) of 67.9%, reinforcing its commitment to robust risk management.
Ajay Kanwal, MD and CEO of Jana Small Finance Bank, attributed this outstanding performance to the bank’s focus on serving “middle India” and the strong acceptance of its products and services by customers and MSMEs. He emphasized the bank’s dedication to digital and customer service excellence, which has significantly contributed to its growth.
Jana Small Finance Bank’s recent listing on the NSE and BSE on February 14, 2024, further underscores its successful journey as a scheduled commercial bank. With a presence across 22 states and 2 union territories through 781 branches, the bank continues to make strides in digital banking while maintaining a solid national presence.
In summary, Jana Small Finance Bank’s record-setting financial performance in FY24 highlights its resilience and strategic growth in India’s competitive banking sector. The bank’s focus on digital innovation, customer service, and comprehensive financial solutions for underserved communities positions it for continued success in the years to come.