Shares of Jana Small Finance Bank fell 1.76% to ₹396 on the NSE after the bank posted Q2 net profit of ₹170 crore, up 130% YoY.
Net interest income surged 34.7% year‑on‑year to ₹819 crore, pushing the net interest margin to 7.5% from 6.5% a year earlier. The net NPA ratio climbed to 1.17% from 0.91% sequentially, even as the gross NPA ratio eased to 2.34% from 2.39%.
The gross loan book stood at ₹38,752 crore, up 22% YoY and 3% sequentially. Secured loans grew 24% YoY to 73.7% of the portfolio, while unsecured assets rose 17% YoY. Deposits expanded 17% YoY to ₹38,221 crore, with term deposits up 19% YoY and 9% sequentially.
Cost‑to‑income ratio improved to 64% from 67% a quarter earlier, and operating costs edged down sequentially. Capital adequacy remained solid at 20%, with Tier‑1 at 18.2%. The credit‑to‑deposit ratio was 92.7%, down from 91.4% a year ago.
CEO Ajay Kanwal said the bank will push secured loans to 80% and sharpen CASA growth, while continuing to invest in AI‑driven processes. The Application Supported by Blocked Amount facility has blocked over ₹10,000 crore since launch.
Looking ahead, Jana Small Finance Bank aims to refine its credit mix, strengthen its CASA base, and capitalize on digital lending opportunities. The next earnings report is slated for Q3 FY27, where analysts will monitor the bank’s NPA trajectory and NIM momentum.