The shares of a banking stock, which specializes in providing financial services to underserved segments, jumped by up to 17 percent following the declaration of Q3 results and the announcement of plans to have a universal banking license.
Price action
With a market capitalization of Rs. 3,838.28 crores on Wednesday, the shares of Jana Small Finance Bank Limited is up by 17 percent in day’s trade making a high of Rs. 438.70 per share compared to its previous closing price of Rs. 635.60 per share.
What Happened
Jana Small Finance Bank Limited specializes in providing financial services to underserved segments, focusing on financial inclusion. It offers products such as savings and current accounts, microloans, personal loans, and insurance services, has announced their Q3FY25 results.
Its Revenue from operations grew by 15 percent YoY from Rs. 1,177.54 Crores in Q3FY24 to Rs. 1,354.82 Crores in Q3FY25 and it rose by 0.9 percent QoQ from Rs. 1,341.61 Crores in Q2FY25 to Rs. 1,354.82 Crores in Q3FY25.
Its Net Profit declined by 17.8 percent YoY from Rs. 134.64 Crores in Q3FY24 to Rs. 110.66 Crores in Q3FY25 and it rose by 14.4 percent QoQ from Rs. 96.72 Crores in Q2FY25 to Rs. 110.66 Crores in Q3FY25.
The earnings per share (EPS) for the quarter stood at Rs. 10.57, compared to Rs. 9.25 in the previous quarter and Rs. 16.31 in the same quarter last year.
Additionally, the bank plans to apply for a universal Banking licence in the next Fiscal year.
Key Financial Metrics
The company has shown strong performance; their secured advances have grown by 68 percent, amounting to Rs. 27,984 Cr, while its Deposits have increased by 24.4 percent YoY, reaching Rs. 25,865 Cr. The company reported a 13.5 percent return on equity (ROE) and a Rs. 380 in BVPS.
Its gross NPAs decreased to 2.71 percent from 2.06 percent, with net NPAs improving to 0.91 percent from 0.67 percent. The company achieved a PAT of Rs. 378 Cr and a PPOP of Rs. 934 Cr. With a capital adequacy ratio (CRAR) of 18.4 percent, the company is well-positioned for future growth.
Written by Sridhar J
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