This major small finance bank’s shares fell nearly 11% following a 21% year-on-year decline in net profit and a rise in non-performing assets (NPA) in Q2 FY25.
Share price variations:
With a market capitalization of Rs. 4,852.99 crores, Jana Small Finance Bank Ltd. fell to an intraday low of Rs. 454.75 representing a 10.85 percent decrease from its previous closing price of Rs. 510.15 per share.
Reason for the Rise:
According to exchange filings, Jana Small Finance Bank Ltd. reported a 21 percent year-on-year decrease in net profit to Rs 97 crore, in Q2FY25 from Rs 123 crore in Q2FY24. On a quarter-on-quarter basis, net profit decreased by 43.29, falling from Rs. 170.56 crore in Q1 FY25.
Net interest income grew by 13 percent year-on-year to Rs. 594 crore, compared to Rs. 525.8 crore in the same period last year. Gross Non-Performing Assets(NPA) rose to 2.97 percent in Q2FY25 from 2.62 percent in Q1FY25.
For the first half of FY25, Net Interest Income rose by 21.86 percent to Rs. 1,204 crores, up from Rs. 988 crores in H1 FY24, while net profit showed an increase of 25.35 percent, reaching Rs. 267.28 crores compared to Rs. 213.21 crores in the previous year.
About the company:
Incorporated in July 2006, Jana Small Finance Bank Limited is primarily engaged in providing MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans, and gold loans.
As of September 30, the company has an active customer base exceeding 45 lakhs, with a presence in over 22 states and 2 Union Territories, operating through a total of 776 banking outlets. The company primarily focuses on seven key states — Maharashtra, Tamil Nadu, Karnataka, Gujarat, Madhya Pradesh, Uttar Pradesh, and Rajasthan — which collectively account for 66% of its branch network.
Written By: Joseph Pv
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