Jana Small Finance Bank Reports Q1 PAT FY25 Increased By 89% To ₹171 Crore Y-O-Y

On July 22, 2024, Jana Small Finance Bank Limited’s Board of Directors approved the unaudited financial results for the first quarter ending June 30, 2024.

Key Highlights for Q1 FY25

In the first quarter of FY25, Jana Small Finance Bank reported several key highlights. The bank’s loan assets under management (AUM) reached ₹25,759 crore, showing a 25% year-on-year (y-o-y) growth. Advances also increased by 25% year-on-year and 4% quarter-on-quarter (q-o-q).

Secured loans grew by 8% q-o-q, while unsecured loans decreased by 1% q-o-q, resulting in a secured loan proportion of 62%, up from 60% in March 2024. Total deposits rose to ₹23,710 crore, a 41% y-o-y and 5% q-o-q increase. CASA (current account and savings account) deposits stood at ₹4,846 crore, growing by 47% y-o-y and 9% q-o-q, with a CASA ratio of 20.4% as of June 2024, up from 19.7% in March 2024.

The bank’s capital adequacy ratio was 19.3%, with a Tier-1 CRAR of 18.2% and strong liquidity indicated by a liquidity coverage ratio (LCR) of 296%. Including interim profits for Q1 FY25, the CRAR was 20.2% and Tier-1 CRAR was 19.1%.

The profit after tax (PAT) for the quarter was ₹171 crore, an 89% y-o-y increase from ₹90 crore in Q1 FY24. The cost-to-income ratio was 55.5%, the return on assets (ROA) was 2.1%, and the return on equity (ROE) was 18.8%. The gross non-performing assets (GNPA) ratio was 2.5%, slightly increasing due to seasonal and event-driven factors. The PAT of ₹171 crore was achieved after creating an additional buffer provision of ₹54 crore and adding a deferred tax asset (DTA) of ₹10 crore.

Commenting on the performance, Mr Ajay Kanwal, MD and CEO of Jana Small Finance Bank, said: “Jana Small Finance Bank (Jana SFB) delivered a solid quarter growing secured assets and deposits with focus on CASA. We have a small rise in GNPA, which we believe is seasonal and event-driven. This will nevertheless get our full attention in the following quarters. We continue to serve aspirational India across 24 states to become an anchor Bank to our customers.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.