Jana Small Finance Bank shares surge 19%, hit 52-week high post Q4 results

Its net interest margin, a key gauge of profitability, improved to 8% for the full year from 7.8% in FY23.

Its operating profit for the quarter was 22% higher year-on-year (YoY) at Rs 342 crore, on a total income of Rs 1,291 crore against Rs 1,010 crore earlier.

The bank's assets under management expanded 25% YoY to Rs 24746 crore at the end of March with the secured portfolio rising to 60%.

"We worked on to de-risk the portfolio and intend to raise the share of the secured book to 80% in the next three years," managing director Ajay Kanwal told ET.
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The bank's gross non-performing assets ratio fell to 2% at the end of March from 3.6% a year back. Net NPA was 0.5% against 2.4%.

"We will need another year to become eligible to apply for a universal banking license," Kanwal said. The Reserve Bank of India (RBI) said small finance banks need to have less than 3% gross NPA and less than 1% net NPA for two consecutive fiscals to become eligible for universal banking licenses.

The bank's total deposits rose 38% YoY to Rs 22,571 crore at the end of March, with the share of low-cost current and savings accounts being at 20% of the total deposit.

At 11:03 am, the stock was trading 17% higher at Rs 584 on BSE. Since its IPO listing price of Rs 396 on February 14, the stock has surged nearly 50%.

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