Jana Small Finance Bank Limited has disclosed a significant promoter shareholding transaction, with its promoter entity Jana Holdings Limited agreeing to divest a substantial stake to TVS Motor Company Limited. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) on May 18, 2026.

Promoter Stake Sale to TVS Motor Company

Jana Holdings Limited, acting as the Seller and a promoter of Jana Small Finance Bank Limited, has entered into a Share Purchase Agreement (SPA) dated May 18, 2026, with TVS Motor Company Limited as the Purchaser. Under the terms of the SPA, Jana Holdings Limited has agreed to sell up to 5,160,903 (Fifty-One Lakh Sixty Thousand Nine Hundred Three) equity shares of Jana Small Finance Bank Limited to TVS Motor Company Limited, subject to the terms and conditions of the agreement.

The key details of the transaction are summarised below:

Transaction Details

The 5,160,903 equity shares being sold represent approximately 4.9% of the total paid-up equity share capital of Jana Small Finance Bank Limited. The aggregate sale consideration for the transaction is INR 193,31,19,436.71 (Rupees One Hundred Ninety-Three Crore Thirty-One Lakh Nineteen Thousand Four Hundred Thirty-Six Rupees and Seventy-One Paise). The transaction is subject to the terms and conditions stipulated in the Share Purchase Agreement.

Regulatory Disclosure

The intimation was communicated by Jana Holdings Limited to Jana Small Finance Bank Limited by way of a letter dated May 18, 2026. Jana Small Finance Bank Limited subsequently filed the disclosure with the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 30 of the SEBI LODR Regulations, 2015. The filing was signed by Lakshmi R N, Company Secretary and Compliance Officer of Jana Small Finance Bank Limited, and the intimation from Jana Holdings Limited was signed by Krishi Jain, Company Secretary and Authorised Signatory.

Jana Small Finance Bank has announced its earnings for the fourth quarter and fiscal year ended 31st March 2026. The bank reported a Profit After Tax (PAT) of INR140 crores for Q4 FY26, successfully meeting the guidance range of INR140 crores to INR160 crores provided in the previous quarter. The management highlighted that the stress in the microfinance institution (MFI) segment is behind them, citing improved asset quality metrics.

Asset Quality and Credit Costs

The bank demonstrated significant improvement in asset quality during the quarter. The Special Mention Accounts (SMA) ratio stood at 3.66%, lower than the 3.99% recorded in March 2024. Slippages for the quarter were approximately INR334 crores, the lowest since the first quarter of 2020. The net credit cost for Q4 was INR156 crores, or 0.47%, while the gross credit cost was INR192 crores. The gross Non-Performing Assets (NPA) ratio was 2.33%, and the net NPA ratio was 0.87%.

Business Growth and Disbursements

Jana Small Finance Bank achieved robust growth across its business segments. Total assets grew by 23% year-on-year, with secured assets increasing by 28% to constitute 72.6% of the total book. The bank recorded its highest-ever disbursements in Q4, with secured disbursements reaching INR 5,372 crores and unsecured disbursements hitting INR 2,522 crores, a 24% quarter-on-quarter growth. The deposit book grew by 23% to INR 35,784 crores, and the cost of deposits decreased by 20 basis points in Q4 versus Q3.

Key Financial Metrics for Q4 FY26

Segment Performance and Future Outlook

The affordable housing portfolio remained the largest segment at INR 8,174 crores, followed by Micro LAP at INR6,300 crores. The gold loan book showed strong performance, growing 140% year-on-year to INR 2,358 crores. The unsecured book stood at INR 9,674 crores, with 77.1% covered under guarantee programs. Management expects to receive the first claim from the Credit Guarantee Fund for Micro Units (CGMFU) in Q3 FY27, estimated at around INR65 crores.

Guidance for FY27

Looking ahead to the financial year 2027, the bank has provided guidance for gross loan portfolio growth of 19% to 21% and deposit growth of 23% to 25%. The management projects that PAT will grow by 80% plus year-on-year. The bank also plans to expand its branch network by adding 38 branches, taking the total count to 860. New products, including a credit line on UPI and FX services via an AD1 license, are expected to launch in the current financial year.