Jana Small Finance Bank Q3FY26 Net Profit Plunges 91% to ₹0.97 Crores
Jana Small Finance Bank reported a 91.24% decline in Q3FY26 net profit to ₹0.97 crores despite 20.22% revenue growth to ₹162.89 crores. Increased provisioning expenses of ₹27.68 crores significantly impacted profitability. The bank maintained strong capital adequacy at 19.17% and improved gross NPA ratio to 2.59% from 2.80% YoY.
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Jana Small Finance Bank Limited reported a sharp decline in profitability for the quarter ended December 31, 2025, as increased provisioning expenses significantly impacted bottom-line performance despite robust revenue growth.
Financial Performance Overview
The bank's financial results for Q3FY26 revealed mixed performance indicators across key metrics:
| Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Total Income | ₹162.89 crores | ₹135.48 crores | +20.22% |
| Net Profit | ₹0.97 crores | ₹11.07 crores | -91.24% |
| Operating Profit | ₹28.65 crores | ₹27.91 crores | +2.65% |
| Provisions | ₹27.68 crores | ₹17.38 crores | +59.29% |
For the nine months ended December 31, 2025, total income increased to ₹469.73 crores from ₹405.25 crores, representing growth of 15.91%. However, net profit declined substantially to ₹18.66 crores from ₹37.79 crores in the corresponding period of the previous year.
Revenue Components and Growth
Interest earned formed the primary revenue driver, reaching ₹138.41 crores in Q3FY26 compared to ₹117.74 crores in Q3FY25. The interest income breakdown showed:
- Interest on advances: ₹123.23 crores (Q3FY26) vs ₹107.32 crores (Q3FY25)
- Income on investments: ₹13.35 crores vs ₹8.84 crores
- Other income: ₹24.47 crores vs ₹17.74 crores
Operating expenses increased to ₹63.30 crores from ₹49.09 crores, with employee costs rising to ₹36.97 crores from ₹30.94 crores year-over-year.
Asset Quality and Capital Position
The bank demonstrated improved asset quality metrics during the quarter:
| Parameter | Q3FY26 | Q3FY25 | Previous Quarter |
|---|---|---|---|
| Gross NPA Ratio | 2.59% | 2.80% | 2.87% |
| Net NPA Ratio | 0.94% | 0.94% | 0.94% |
| Capital Adequacy Ratio | 19.17% | 18.39% | 19.72% |
| Return on Assets | 0.09% | 1.30% | 0.74% |
The bank maintained a robust capital position with a debt-equity ratio of 0.87 and net worth of ₹403.62 crores as of December 31, 2025.
Segment Performance Analysis
Retail banking remained the dominant segment, contributing ₹213.99 crores in revenue during Q3FY26. However, the segment reported negative results of ₹6.21 crores compared to positive ₹2.22 crores in Q3FY25. Treasury operations generated ₹3.64 crores in segment results, while corporate/wholesale banking contributed ₹0.57 crores.
Regulatory Compliance and Operations
During the quarter, the bank allotted 36,573 shares under its Employee Stock Option Scheme. The bank also engaged in loan portfolio management activities, acquiring loans worth ₹184.87 crores through assignment and transferring non-performing assets worth ₹369.85 crores to Asset Reconstruction Companies.
The bank recognized an estimated incremental impact of ₹11.89 crores under employee costs due to the implementation of New Labour Codes notified by the Government of India in November 2025. Basic earnings per share for the quarter stood at ₹0.92 compared to ₹10.57 in the corresponding quarter of the previous year.
Historical Stock Returns for Jana Small Finance Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.76% | -1.92% | -18.78% | -24.54% | -23.04% | -4.33% |
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