Jana Small Finance Bank – Investor Presentation Summary

Key Operational Highlights

  • Gross Loan Portfolio (GLP) reached Rs. 38,752 crores, a growth of 22.4% YoY and 3.0% QoQ.
  • Disbursements for Q2 FY27 were Rs. 4,414 crores (excluding NBFC), higher by 7% YoY and 5% QoQ.
  • Secured Assets composition increased to 73.7% of the portfolio from 72.5% in Mar-26.
  • Collection efficiency improved to over 99% for the B0 bucket across the overall Unsecured book, including BC Book.
  • The Bank opened 40 new outlets in H1 FY27 (6 new branches, 20 split branches, 14 relocations) against a full-year FY27 plan of 78.

Key drivers of operational performance: Growth in secured asset classes like Vehicle Loans (76.3% YoY) and Gold Loans (81.4% YoY); tight selection criteria in MFI leading to 97% of new customers having <=2 MFI lenders; improved collection efficiency.

Segment-wise Performance

  • Affordable Housing: GLP of Rs. 8,977 crs, growth of 28.2% YoY and 6.4% QoQ; GNPA 0.3%, NNPA 0.2%.
  • Micro LAP: GLP of Rs. 6,252 crs, growth of 3.7% YoY and 0.9% QoQ; GNPA 0.6%, NNPA 0.4%.
  • MSME Loans: GLP of Rs. 5,749 crs, growth of 20.6% YoY and 6.7% QoQ; GNPA 1.2%, NNPA 0.9%.
  • Term Loans To NBFCs: GLP of Rs. 2,047 crs, growth of 0.7% YoY and 7.0% QoQ; GNPA 0.3%, NNPA 0.3%.
  • Vehicle Loans: GLP of Rs. 2,263 crs, growth of 76.3% YoY and 11.7% QoQ; GNPA 0.0%, NNPA 0.0%.
  • Gold Loans: GLP of Rs. 2,686 crs, growth of 81.4% YoY and 0.3% QoQ; GNPA 0.8%, NNPA 0.7%.
  • Unsecured Advances: GLP of Rs. 10,209 crs, growth of 17.1% YoY and a decrease of (0.3%) QoQ; GNPA 6.6%, NNPA 3.0%.

Explanation of significant changes in segment performance: Strong growth in secured segments like Vehicle and Gold loans driven by geographical expansion; subdued MFI book growth due to tight selection criteria; Gold loans had a slow quarter due to margin calls from dropping gold prices.

Financial Highlights

Q2 FY27 Performance:

  • Revenue (Operating Income): Rs. 1,047 crores
  • Net Interest Income (NII): Rs. 819 crores, increase of 35% YoY and 5% QoQ
  • Profit Before Tax (PBT): Rs. 170 crores, higher by 127% YoY and 10% QoQ
  • Profit After Tax (PAT): Rs. 170 crores, higher by 127% YoY and 10% QoQ
  • Pre Provisioning Operating Profit (PPOP): Rs. 374 crores

H1 FY27 Performance:

  • Profit After Tax (PAT): Rs. 326 crores (H1 FY26: Rs. 177 crores)
  • Pre Provisioning Operating Profit (PPOP): Rs. 707 crores (H1 FY26: Rs. 555 crores)

Margins & Ratios:

  • Net Interest Margin (NIM): 7.54% for Q2 FY27 (Q2 FY26: 6.5%)
  • Return on Assets (ROA): 1.4% (annualized) for Q2 FY27 (Q2 FY26: 0.9%)
  • Return on Equity (ROE): 14.2% (annualized) for Q2 FY27 (Q2 FY26: 8.4%)
  • Cost to Income Ratio: 64.3% for Q2 FY27
  • Credit Cost: Rs. 203 crores for Q2 FY27; Net Credit Cost was 0.49% of average GLP

YoY/QoQ comparison: All key profit metrics showed strong YoY growth. Operating expenses decreased 0.4% QoQ.

Drivers of financial performance: Higher NII driven by growth in advances and improved NIM; reduction in cost of funds; controlled operating expenses.

Key Risks: Disclosed risks include drought impact in Assam, Maharashtra, and Karnataka contributing 0.3% to slippages; awaiting CGFMU scheme extension for FY27 for guarantee on fresh disbursals.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Top 7 states account for 67% risk concentration, with top 3 states at 37%. Top deposit states are Karnataka, Tamil Nadu, Delhi, Maharashtra, Punjab, Uttar Pradesh, and West Bengal.

Balance Sheet Snapshot

As of September 30, 2026:

  • Total Assets: Rs. 50,115 crores
  • Advances (Net): Rs. 35,445 crores
  • Investments: Rs. 10,062 crores
  • Deposits: Rs. 38,221 crores
  • Borrowings: Rs. 5,248 crores (includes Refinance Rs. 4,584 crs, Tier-2 capital Rs. 375 crs)
  • Reserves & Surplus: Rs. 4,712 crores
  • Capital: Rs. 106 crores
  • Share Warrant Money: Rs. 103 crores

Key Ratios:

  • Capital-to-Risk Weighted Asset Ratio (CRAR): 20.0%
  • Book Value Per Share (BVPS): Rs. 455
  • Credit to Deposits Ratio: 92.7% (80.7% after adjusting for refinance)

Financial Health Insights: Strong capital adequacy (CRAR 20.0%); stable deposit growth; long-term and stable borrowing profile with refinance from institutions like NABARD, SIDBI, NHB, and MUDRA.

Capex & Cash Flow Health

Capital Expenditure: Not explicitly specified for future periods.

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Branch expansion and network optimization (40 outlets in H1); focus on growing secured asset classes.

Strategic & R&D Initiatives

Investments in Innovation: Digital focus with initiatives like ASBA (crossed Rs. 10,000 Crs amount blocked since inception); awarded IBA Banking Technology Award for Identity & Access Management.

Expected impact on growth: Digital initiatives aimed at enhancing customer service and CASA balances.

Strategic Rationale: Positioning as an "Anchor Bank for Rising India"; increasing secured business proportion for a sustainable franchise.

Industry Trends & Business Environment

Macro/Industry Trends: Drought conditions in some states (Assam, Maharashtra, Karnataka); volatility in gold prices.

Impact on Company: Drought contributed 0.3% to slippages; drop in gold prices led to margin calls affecting Gold loan growth in the quarter.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on creating a sustainable, predictable, and long-term franchise with high standards of governance and customer service.

FY Guidance: PAT guidance for FY27 revised upwards to 100% growth (from 80% previously) after H1 PAT of Rs. 326 Crs matched the full-year FY26 PAT.

Market Share Targets: Not Specified

Risks and Opportunities: Credit cost has peaked in Q2 for this FY; expect claim receipt of Rs. 68 crores in Q3 from CGFMU/CGTMSE to reduce NNPA below 1%.

Capital Update

  • Rs. 626 Crs of capital is due to be received in the next 15 months on warrants conversion at Rs. 464 per share.