Jana Small Finance Bank reported a robust performance for Q4 FY26, with a profit after tax of INR 140 crores, meeting all management guidance. The bank saw 23% year-on-year growth in both assets and deposits. With stress in the microfinance segment effectively behind it, the bank is focusing on secured asset expansion, digital transformation, and sustainable credit costs. Management expressed confidence in a strong growth trajectory for the upcoming fiscal year.
Financial Performance Highlights
Jana Small Finance Bank concluded the fiscal year 2026 on a strong note. The bank achieved a PAT of INR 140 crores in Q4 FY26, adhering to its stated guidance. Key metrics showed resilience, with net credit cost declining to 0.47%. The bank’s commitment to quality growth is reflected in its 23% year-on-year asset growth, with the secured book now accounting for 72.6% of the total portfolio.
Strategic Asset and Deposit Growth
The bank’s deposit base reached INR 35,784 crores, marking a 23% year-on-year increase. Despite a slight dip in CASA during the fourth quarter due to industry-wide fluctuations, the bank is targeting a growth of 27% to 30% in CASA for the coming year. On the asset side, the bank is prioritizing secured lending, with affordable housing and gold loans performing exceptionally well, the latter seeing 140% growth over the previous year.
Portfolio Quality and Future Outlook
The bank has successfully mitigated stress in its microfinance segment, with SMA levels at 3.66%, lower than levels seen in March 2024. A significant portion of the unsecured book (77.1%) is now covered under credit guarantee programs, providing a strong cushion against future NPAs. Moving forward, the bank is targeting a gross loan portfolio growth of 19% to 21% and anticipates a PAT growth of 80% plus for the upcoming financial year.
Digital Expansion
Digital transformation remains a core pillar of the bank’s strategy. Recent data highlights substantial progress, including a 114% increase in mobile bank registrations and a 36% rise in mobile transactions. With the testing of a credit line on UPI and plans to go live with an AD1 license for foreign exchange, the bank is well-positioned to leverage its digital platform for deeper customer engagement and operational efficiency.
Source: BSE
