Jana Small Finance Bank has completed the allotment of 29,259 equity shares under its Employee Stock Option Plan (ESOP) schemes on March 17, 2026. The allotment was made pursuant to the exercise of options granted to employees under the bank's ESOP 2017 and ESOP 2018 schemes, as disclosed to the stock exchanges under Regulation 30 of SEBI Listing Regulations.

Share Allotment Details

The allotment comprises shares from two ESOP schemes with varying exercise prices and premiums:

All allotted equity shares carry a face value of Rs. 10 each and are fully paid-up. The shares will rank pari-passu with the existing equity shares of the bank, providing equal rights and privileges to the holders.

Impact on Share Capital

The allotment has resulted in an increase in the bank's paid-up equity share capital:

The distinctive numbers for the newly allotted shares range from 105,295,298 to 105,324,557.

Regulatory Compliance

Jana Small Finance Bank has informed both BSE Limited and National Stock Exchange of India Limited about the allotment. The bank will submit applications for listing and trading approval from both exchanges for the newly allotted shares. The shares are issued in demat form under ISIN number INE953L01027.

The bank had previously filed the required statement under regulation 10(b) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 with the recognized stock exchanges on July 17, 2024. No lock-in period applies to these shares, and no listing fees are payable for this allotment.

Jana Small Finance Bank Limited has received a reaffirmation of its CARE A rating with stable outlook from CARE EDGE Ratings on February 17, 2026. The rating applies to the bank's ₹75.00 crore Lower Tier II subordinate debt, reflecting the institution's adequate capitalisation despite ongoing challenges in asset quality and profitability.

Rating Details and Strategic Positioning

The rating reaffirmation acknowledges the bank's strategic transformation from unsecured microfinance lending to secured retail and micro, small and medium enterprise (MSME) segments. This shift has resulted in significant portfolio diversification, with microfinance loans declining to 27% of the advances book as of December 31, 2025, from 40% as of March 31, 2024.

Financial Performance and Profitability Challenges

The bank's financial performance has been significantly impacted by stress in the microfinance segment, leading to elevated credit costs and compressed profitability metrics. Return on total assets (ROTA) declined substantially across recent periods.

The deterioration in profitability stems from elevated slippages of 8.09% in FY25 and 7.65% (annualised) in 9MFY26, primarily concentrated in the microfinance portfolio. Despite these challenges, the bank maintained gross non-performing assets below 3% through strategic write-offs and accelerated provisioning.

Capitalisation and Growth Trajectory

Jana Small Finance Bank maintains adequate capitalisation levels that continue to support business expansion. The bank raised ₹462 crore through its initial public offering in February 2024, contributing to total equity infusions of ₹1,137 crore in FY24. Additionally, the institution raised Tier II capital of ₹250 crore in Q3FY26.

The bank demonstrated strong advance growth in the post-COVID period, with loan growth moderating to 19% in FY25 and 13% year-to-date in 9MFY26, primarily due to deliberate reduction in unsecured microfinance portfolio amid industry-wide stress.

Deposit Growth and Liability Profile

The bank's liability structure has undergone substantial improvement, with deposits growing 30% year-on-year to ₹33,733 crore as of December 31, 2025. The credit-to-deposit ratio improved to 93% from 103% in the previous year, indicating reduced dependence on borrowings.

However, the current account savings account (CASA) ratio remains relatively modest at 20%, with continued dependence on bulk deposits presenting funding cost challenges.

Operational Diversification and Future Outlook

The bank operates through 816 branches across 23 states and two Union territories, with no single state contributing over 14% of advances as of December 31, 2025. The secured loan portfolio comprises affordable housing loans (23%), micro loan against property including micro housing (19%), MSME loans (14%), and other diversified products.

The stable outlook reflects expectations that Jana Small Finance Bank will maintain profitable scale-up in advances and deposits while keeping asset quality under control and maintaining adequate capitalisation. The bank had applied for voluntary transition to Universal Bank status but the application was returned by RBI as eligibility criteria were not fully met.

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