Jana Small Finance Bank , a key player in India's small finance banking sector, has announced ambitious growth plans for the fiscal year 2026 (FY26), targeting a 35-40% increase in asset growth. The bank's strategy focuses on expanding its secured lending portfolio, particularly in affordable housing, MSME, and gold loan segments.

Growth Strategy and Asset Mix

The bank is strategically shifting its focus towards secured lending, aiming to have 95% of its portfolio either secured or covered under guarantee programs by March 2027. As of September 30, 2025, the bank's secured book stood at 72.5% of its total assets, showing significant progress towards this goal.

Jana SFB's Managing Director and CEO, Ajay Kanwal, stated, "Our focus on building a granular and diversified balance sheet continues to yield results, supported by the trust of our customers and disciplined execution by our teams."

Financial Performance Highlights

For the half-year ended September 30, 2025, Jana SFB reported:

• Net Profit: ₹177.00 crores
• Gross Loan Portfolio: ₹31,655.00 crores (20% year-on-year growth)
• Total Deposits: ₹32,532.00 crores (31% year-on-year growth)
• CASA (Current Account Savings Account) Ratio: 18.3%
• Gross Non-Performing Assets (GNPA): 2.8%
• Net Non-Performing Assets (NNPA): 0.9%
• Capital Adequacy Ratio: 20.7%

Segment-wise Performance

Future Outlook

Jana SFB expects to see improvements in several areas:

1. Credit Costs: The bank anticipates a reduction in credit costs over the coming financial years, particularly as it increases its focus on secured lending.

2. Net Interest Margins (NIMs): With the cost of funds expected to decline in the coming quarters, the bank foresees an improvement in NIMs.

3. Earnings Momentum: The calibrated resumption of unsecured lending, along with continued moderation in Gross and Net NPAs, is expected to support earnings growth.

Kanwal added, "Backed by favourable macroeconomic conditions, prudent risk management, and operational strength, Jana Small Finance Bank is well-positioned for sustained and profitable growth in the periods ahead."

Challenges and Mitigations

While the bank faces challenges in the MFI sector, its strategy to move towards a predominantly secured book or loans covered under guarantee programs is expected to mitigate risks. The bank has also made accelerated provisions of ₹222.00 crores in H1 FY26 to strengthen its balance sheet.

Conclusion

Jana Small Finance Bank's focus on secured lending, coupled with its strong deposit growth and improving asset quality, positions it well for the targeted 35-40% asset growth in FY26. The bank's strategic shift towards a more secure loan portfolio is expected to enhance its resilience and profitability in the coming years.

Jana Small Finance Bank Limited has announced its unaudited financial results for the half year ended September 30, 2025, showcasing a robust performance in key financial metrics.

Financial Highlights

The bank reported a net profit after tax of ₹176.92 crores for the half-year period. Here's a breakdown of the key financial indicators:

Performance Analysis

Jana Small Finance Bank has demonstrated a solid financial foundation with its capital adequacy ratio of 19.72%, well above the regulatory requirements. This indicates the bank's strong ability to absorb potential losses and support future growth.

The bank's asset quality appears to be under control, with a gross NPA ratio of 2.87% and a net NPA ratio of 0.94%. These figures suggest effective management of non-performing assets, which is crucial for maintaining the overall health of the loan portfolio.

The total income for the half year reached ₹3,068.40 crores, reflecting the bank's ability to generate revenue across its various business segments. The basic earnings per share of ₹16.82 for the half year indicates positive returns for shareholders.

Strategic Moves

During the period, Jana Small Finance Bank made strategic decisions to strengthen its balance sheet:

1. Loan Acquisition: The bank acquired loans worth ₹163.21 crores under assignment, with a weighted average residual maturity of 0.92 years.

2. NPA Management: In a significant move to clean up its balance sheet, the bank transferred non-performing assets worth ₹412.16 crores to Asset Reconstruction Companies (ARCs). This transfer involved 79,848 accounts and had a weighted average residual tenor of 6.97 years.

Segment Performance

The bank's financial results reveal performance across different business segments:

Retail banking continues to be the largest contributor to the bank's revenue, while the treasury segment shows the highest profit before tax.

Conclusion

Jana Small Finance Bank's financial results for the half year ended September 30, 2025, reflect a bank that is growing while maintaining a focus on asset quality and capital adequacy. The strategic decisions to acquire new loans and transfer NPAs to ARCs demonstrate the bank's proactive approach to balance sheet management. As the bank continues to expand its operations, particularly in retail banking, it appears well-positioned for sustainable growth in the coming periods.

Investors and stakeholders may view these results as indicative of the bank's resilience and strategic focus in a competitive banking landscape. However, as with all financial investments, it's important to consider broader market conditions and potential future challenges when evaluating the bank's long-term prospects.