Jana Small Finance Bank reports record Rs 354cr PBT in 9M FY25

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Limited (JSFB) has delivered its highest-ever profit before tax (PBT) of ₹354 crore for the nine months ended December 31, 2024. This milestone underscores the bank’s ability to sustain its growth momentum, despite a challenging macroeconomic environment. The unaudited financial results for Q3 FY25 reveal significant improvements across core metrics, driven by robust secured asset growth and deposit mobilisation.

How Did Jana Small Finance Bank Achieve ₹354 Crore PBT?

Jana Small Finance Bank’s PBT for the period marks a 1.7% year-on-year growth, surpassing previous records. Contributing to this achievement is a significant 19% increase in the bank’s total assets under management (AUM), which now stand at ₹27,984 crore. Of this, 68% of the portfolio comprises secured loans, with secured assets experiencing an impressive 36% year-on-year growth. This shift reflects the bank’s strategic pivot towards less risky, asset-backed lending.

In contrast, unsecured lending decreased by 7% year-on-year, consistent with the bank’s efforts to reduce exposure to higher-risk credit. The affordable housing and micro-loan against property (LAP) segments emerged as key contributors, accounting for ₹11,000 crore or 39% of total AUM.

What Factors Drove Deposit Growth at Jana Small Finance Bank?

The bank’s deposit base grew by a robust 24% year-on-year to ₹25,865 crore, underscoring its success in building customer trust and strengthening its retail franchise. CASA (current account and savings account) deposits rose by 22% year-on-year, reaching ₹4,768 crore. While the CASA ratio dipped slightly to 18.4%, reflecting competitive rate adjustments, term deposits (TD) demonstrated a strong 25% annual growth, showcasing customers’ confidence in the bank’s offerings.

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According to , MD and CEO, the focus on retail CASA deposits remains integral to the bank’s strategy. “Although microfinance challenges have stabilised, we remain cautious and are directing efforts toward expanding our retail deposit base to enhance long-term stability,” he noted.

Why Is Credit Quality a Cornerstone of JSFB’s Success?

A critical element of Jana Small Finance Bank’s performance has been its improving credit quality. The gross non-performing assets (GNPA) ratio fell to 2.71%, a 15 basis point improvement compared to the previous quarter. Net NPA stood at 0.91%, while the provision coverage ratio (PCR) was maintained at a healthy 66.9%.

Additionally, the bank made ₹208 crore in accelerated provisions to further strengthen its balance sheet, while adding ₹24 crore in deferred tax assets (DTA). These measures underscore the bank’s proactive risk management approach, ensuring resilience amid economic uncertainties.

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How Is Jana Small Finance Bank Positioned for the Future?

The bank’s capital adequacy ratio (CAR) stood at a robust 18.4%, with Tier-1 capital contributing 17.5%. After considering the 9M profit, the adjusted CAR improved further to 20.4%. Annualised return on assets (ROA) and return on equity (ROE) were reported at 1.5% and 13.5%, respectively, reflecting sound financial management.

With a network of 778 branches spanning 24 states and two union territories, Jana Small Finance Bank has emerged as a prominent player in the small finance banking sector. The bank’s diversified retail deposit franchise, coupled with its strong focus on secured lending, positions it for continued growth.

What Makes Jana Small Finance Bank Stand Out Among Peers?

As the fourth-largest small finance bank in , JSFB’s journey from a microfinance institution to a full-fledged commercial bank is a testament to its adaptability and resilience. The bank’s digital-first approach, combined with a strong physical presence, has enabled it to cater to over 12 million customers nationwide.

The management’s average experience of 24 years has played a pivotal role in navigating the complexities of the financial sector. Looking ahead, Jana Small Finance Bank aims to further enhance customer experience, diversify its lending portfolio, and maintain strong liquidity.

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Expert Insights on JSFB’s Performance

Financial analysts attribute the bank’s success to its emphasis on secured asset growth, disciplined cost management, and proactive risk mitigation. Industry expert Rajiv Sharma notes, “Jana Small Finance Bank’s focus on secured lending and retail CASA deposits highlights a strategic shift toward sustainable growth. Its prudent approach to asset quality and capital adequacy is commendable.”

Key Performance Metrics: A Snapshot

  • Assets under Management (AUM): ₹27,984 crore (+19% YoY)
  • Deposits: ₹25,865 crore (+24% YoY)
  • CASA Deposits: ₹4,768 crore (+22% YoY)
  • Gross NPA: 2.71% (-15 basis points QoQ)
  • Profit Before Tax (PBT): ₹354 crore
  • Profit After Tax (PAT): ₹378 crore

Jana Small Finance Bank’s record-breaking performance in 9M FY25 is a reflection of its strategic focus on secured lending, deposit growth, and improving credit quality. With a strong foundation and a clear roadmap, the bank is well-positioned to navigate future challenges and seize emerging opportunities in India’s dynamic financial landscape.


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