Jana Small Finance Bank shares surged sharply over 8% in early trade after the lender announced its Q3 results, despite a steep year-on-year fall in net profit.
In the December quarter, Jana Small Finance Bank reported a 14.0% year-on-year rise in net interest income (NII) at ₹675 crore, compared with ₹593 crore in the corresponding quarter last year. The growth in NII highlighted steady traction in the bank’s core lending operations, even as the broader operating environment remained challenging.
Operating profit for the quarter came in at ₹287 crore, marking a 2.7% increase from ₹279 crore on a year-on-year basis. However, net profit declined sharply by 91.2% to ₹9.7 crore, compared with ₹110.7 crore in the same period last year. The significant drop in bottom-line performance weighed on headline earnings, though the market appeared to look beyond the profit contraction.
On the asset quality front, Jana Small Finance Bank reported an improvement on a quarter-on-quarter basis. Gross non-performing assets (NPA) stood at 2.59% at the end of Q3, easing from 2.87% in the previous quarter, signalling better control over slippages and recoveries.
The stock reacted positively to the results, gaining momentum soon after the opening bell. As of 9:42 AM IST, shares were trading near the day’s high of ₹404.60, after opening at ₹346.00. The stock touched an intraday low of ₹346.00, while the previous close was ₹352.20. Over the past year, the stock has moved between a 52-week low of ₹338.90 and a 52-week high of ₹552.50.