Shares of Jana Small Finance Bank surged 14.43% to ₹418.35 on January 22, 2025, following the release of its Q3 FY25 results post-market hours. Despite a year-on-year (YoY) decline in net profit, the stock rallied on the back of strong operational performance and improved asset quality.
Key Financial Highlights (Q3 FY25):
- Net Profit: ₹110.6 crore, a 17.91% YoY decline from ₹134.6 crore in Q3 FY24, but a sequential increase of 14.60% from ₹96 crore in Q2 FY25.
- Net Interest Income (NII): ₹593 crore, an 8% YoY growth from ₹549 crore.
- Pre-Provisioning Operating Profit (PPOP): ₹279 crore, down from ₹295 crore in Q3 FY24.
- Gross Non-Performing Assets (GNPA): Increased to 2.8% from 2.19% in Q3 FY24.
- Net Non-Performing Assets (NNPA): Rose to 0.94% from 0.71% YoY.
Nine-Month FY25 Performance:
- Net Interest Income (NII): ₹1,796 crore, up 17% YoY.
- Net Profit: ₹378 crore, an 8.6% YoY growth.
- Assets Under Management (AUM): ₹27,984 crore, up 19% YoY, with 68% secured assets.
Operational Insights:
The Affordable Housing & Micro LAP segment remains Jana SFB’s largest business, contributing ₹11,000 crore, or 39% of the total AUM. The bank has focused on improving credit quality, maintaining its NNPA ratio below 1% for consecutive quarters.
Growth Prospects:
Jana Small Finance Bank is preparing to apply for a universal banking license after the fiscal year, according to reports of ET Now. The bank’s strong performance and focus on secured asset growth have been instrumental in paving the way for this transition. MD & CEO Ajay Kanwal stated, “If everything goes well, we will become eligible to apply for a universal banking license next fiscal.”
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