Jana Small Finance Bank Q1FY26 Results: PAT at ₹102 Cr Despite ₹150 Cr Provision; Advances up 16% YoY

Bengaluru, July 22 —Jana Small Finance Bank Ltd (NSE: JANASBANK) delivered a robust Q1 FY26 performance, reporting a standalone profit after tax (PAT) of ₹102 crore, despite an accelerated provisioning of ₹150 crore, reflecting strong balance sheet discipline and prudent risk management. The bank also moved forward with its application to the RBI for a universal banking licence, indicating confidence in meeting regulatory benchmarks after maintaining GNPA and NNPA below 3% and 1%, respectively, for two consecutive years

Key Financial Highlights

In Q1FY26, the company reported a net profit of ₹102 crore, down 40.3% YoY and 17.1% QoQ due to deferred tax adjustments. However, adjusted PAT (excluding DTA impact) rose 17.8% YoY and 16.1% QoQ to ₹252 crore. Net Interest Income was flat QoQ at ₹595 crore, while other income surged 40.7% YoY to ₹266 crore. PPOP stood at ₹298 crore, down 16.3% YoY but up 1.7% QoQ. Gross NPA increased to 2.8%, though Net NPA remained steady at 0.9%. Provision coverage ratio improved to 82.2%, with adjusted RoA at 2.64% and RoE at 23.70%.

Note: Adjusted RoA stood at 2.64% and Adjusted RoE at 23.70% for Q1FY26.

Advances & Deposits Growth

Segment Performance

Secured Loans (₹21,244 Cr, up 33.8% YoY)

• Gold Loans: ₹1,260 Cr (▲226.8% YoY, ▲28.6% QoQ)
• Two-Wheeler Loans: ₹1,138 Cr (▲105.5% YoY, ▲13.6% QoQ)
• Affordable Housing: ₹6,535 Cr (▲37.9% YoY, ▲6.5% QoQ)

Unsecured Loans (₹8,687 Cr, ▼12% YoY)

• Driven by tighter lending norms and strategic recalibration.
• Group loans showed a positive trend (▲18.1% QoQ), while BC book declined.

Capital & Liquidity

• CRAR: 20.5% (vs. 20.7% in Q4FY25)
• LCR: 171%
• Surplus Liquidity: ₹2,519 Cr
• Cost of Deposits: Maintained at 8.0%

Management Commentary

Jana SFB emphasized its continued focus on strengthening the secured lending book and sustaining deposit momentum. The bank reiterated its guidance of ~20% AUM growth, 18-20% deposit growth, and ~30% PAT growth for FY26, supported by digital expansion, strong asset quality, and an evolving liability franchise.

“Our diversified portfolio strategy is showing positive results with strong secured loan momentum. With a PAT of ₹102 crore post ₹150 crore accelerated provisioning, we have fortified the balance sheet while preserving profitability,” said Ajay Kanwal, MD & CEO.

Strategic Highlights

• Universal Bank License: Application submitted to RBI on June 9, 2025.
• Digital Push: 90%+ digital uptake, 27,276 merchant QR codes installed, and 85% YoY growth in UPI in-app transaction value.
• New Branches: 8 new branches launched in Q1; total network at 809 outlets.
• Award Recognition: Ranked 1st among SFBs by the Government of India for excellence in digital payments (FY24).

About the Company

Jana Small Finance Bank Limited is a scheduled commercial bank listed on Indian stock exchanges. With a nationwide presence and over 4.4 million active customers, the bank offers a diversified mix of secured and unsecured loans, deposits, and financial services tailored to underserved segments across India. The company is in the process of transitioning into a universal bank, subject to regulatory approval.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/2077a345-cd52-4af2-9ed3-56cf055954e3.pdf

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