Jana Small Finance Bank reported a significant increase in its Profit After Tax (PAT) for the second quarter of FY27, reaching ₹170 crore, a 127% year-on-year growth and a 10% quarter-on-quarter increase. The Net Interest Income (NII) also saw a substantial rise of 35% YoY. The bank highlighted improvements in its asset quality, with GNPA reducing to 2.17% and NNPA at 1.08%. Guidance for PAT growth has been revised upwards to 100% for FY27.
Jana Small Finance Bank Reports Strong Q2 FY27 Performance
Jana Small Finance Bank has announced robust financial results for the second quarter and first half of FY27, demonstrating significant growth and improved operational efficiency. The bank’s Profit After Tax (PAT) for Q2 FY27 stood at ₹170 crore, marking a substantial 127% year-on-year increase and a 10% growth compared to the previous quarter. This performance underscores the bank’s expanding profitability and strategic execution.
Key Financial Highlights
- Net Interest Income (NII): Grew by 35% YoY and 5% QoQ.
- Operating Expenses: Increased by 15% YoY, with a slight decrease of 0.4% QoQ.
- Secured Assets: The proportion of secured assets in the loan portfolio increased to 73.7% from 72.5% as of March 2026.
- Net Interest Margin (NIM): Improved from 6.5% to 7.54% YoY, driven by a better Cost of Funds (7.4% from 7.9%).
- Asset Quality: Gross Non-Performing Assets (GNPA) reduced to 2.17%, and Net Non-Performing Assets (NNPA) stood at 1.08%. The bank anticipates NNPA to fall below 1% upon settlement of a claim in Q3.
Full Year and Half-Year Performance
For the first half (H1) of FY27, the bank reported a PAT of ₹326 crore, which is equivalent to the full-year PAT achieved in FY26. This strong H1 performance has led to a revision of the FY27 PAT growth guidance from 80% to 100%.
Operational and Strategic Updates
The bank continues to focus on expanding its pan-India franchise, with 829 outlets across 23 states and 2 Union Territories. Plans for FY27 include opening 78 new branches and relocating 40 existing ones. New product launches include Credit Line on UPI, Loan Against Shares and MF, and Trade & Forex services. Customer service metrics show over 12 million customers served since 2008, with 94% complaint resolution within TAT and 95% service requests closed within TAT.
Advances saw a growth of approximately 22% YoY to ₹38,752 crore, with secured advances growing by 24% YoY. The bank is also experiencing growth in its digital channels, with 90%+ digital uptake across banking transactions and loan processing. CASA growth stands at 13% YoY, with a cost of funds reduction by 40 basis points to 7.45%.
Capital and P&L Metrics
Following a capital raise of ₹103 crore, the Return on Equity (RoE) improved to 14.2%. The bank’s assets reached ₹38,752 crore, and liabilities stood at ₹38,221 crore. Profit Before Tax (PBT) for Q2 FY27 was ₹170 crore, contributing to a PPOP of ₹374 crore. The bank also anticipates receiving ₹626 crore from warrant conversions in the next 15 months.
Future Outlook and Guidance
Jana Small Finance Bank has revised its guidance for FY27, targeting 100% PAT growth. The bank aims to increase its secured business proportion, create a sustainable franchise, and leverage digital initiatives for high standards of governance and customer service. Projected growth includes GLP growth of ~19-21%, Deposits growth of ~23-25%, and PAT growth of ~100%.
Source: BSE
