Jana Small Finance Bank Reports Q2 FY26 Results: Unsecured Assets Stabilize, Secured Portfolio Grows

Jana Small Finance Bank has reported its financial results for the second quarter of fiscal year 2026, showing signs of stabilization in its unsecured assets portfolio and strong growth in secured lending segments.

Key Highlights

Total deposits crossed ₹30,000 crore milestone, reaching ₹32,532.00 crore
CASA grew 14% year-to-date, term deposits up 11% year-to-date
Cost of deposits decreased to 7.88% in Q2 FY26
Unsecured assets portfolio showed 0.3% growth after previous declines
Secured assets demonstrated strong growth across various segments
₹250.00 crore Tier 2 capital raised, improving Capital Adequacy Ratio by 1.25%

Financial Performance

The bank reported a Profit After Tax (PAT) of ₹75.00 crore for Q2 FY26 and ₹177.00 crore for the first half of the fiscal year. The Net Interest Margin (NIM) stood at 6.6% for Q2, slightly down from 6.7% in Q1.

Asset Quality and Portfolio Mix

As of September 30, 2025, Jana Small Finance Bank's gross loan portfolio reached ₹31,655.00 crore. The portfolio composition is as follows:

Asset Type	Percentage
Secured Assets	72.5%
Unsecured (under guarantee programs)	13.5%
Unsecured (outside guarantee programs)	14.0%

The bank has expanded its coverage under guarantee programs, with 49% of the total unsecured book now under such schemes.

Segment-wise Performance

Strong growth was observed across various secured lending segments:

Affordable Housing: 34.4% year-on-year growth
MSME: 27% year-on-year growth
Gold Loans: 17.5% quarter-on-quarter growth
Two-Wheelers: 12.8% quarter-on-quarter growth

Strategic Initiatives

Jana Small Finance Bank has implemented several strategic initiatives to strengthen its position:

Increased Focus on Secured Lending: The bank aims to maintain 80% of its portfolio in secured assets.
Expansion of Guarantee Programs: Plans to have 96% of the unsecured portfolio under guarantee programs by March 2027.
Capital Strengthening: Raised ₹250.00 crore in Tier 2 capital, improving the Capital Adequacy Ratio.
Cost Management: Efforts to optimize costs, particularly in the microfinance (MFI) business.

Management Commentary

Ajay Kanwal, Managing Director and CEO of Jana Small Finance Bank, commented on the results: "We are pleased to see the stabilization of our unsecured assets portfolio and the strong growth in our secured lending segments. Our strategic focus on increasing the share of secured assets and expanding coverage under guarantee programs for unsecured lending is yielding positive results."

Future Outlook

The bank has revised its PAT growth guidance to 0-2% for the current fiscal year, while maintaining 20% growth targets for loans and deposits. Management expects the Net Interest Margin to improve in the coming quarters, potentially reaching closer to 7% by the end of the fiscal year.

Jana Small Finance Bank continues to work towards its goal of becoming a universal bank, with the application process ongoing and regulatory audits completed.

As the bank navigates the evolving financial landscape, it remains committed to its strategy of creating a balanced portfolio with a strong emphasis on secured lending and risk mitigation through guarantee programs for its unsecured book.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.39%	-3.64%	-4.04%	-13.38%	-3.78%	+20.77%

Jana Small Finance Bank has initiated a postal ballot to seek shareholder approval for the appointment of Mr. Rakesh Joshi as a Non-Executive Independent Director. This move aims to strengthen the bank's board with experienced professionals from the banking and financial services sector.

Key Details of the Appointment

Aspect	Details
Appointee	Mr. Rakesh Joshi (DIN: 09766853)
Position	Non-Executive Independent Director
Appointment Date	August 27, 2025
Proposed Term	5 years (up to August 26, 2030)
Age	63 years
Experience	Over 41 years in banking, financial services, and insurance
Previous Role	Whole Time Member at IRDAI (until December 2023)

Remuneration and Voting Process

Mr. Joshi's appointment comes with an annual remuneration package and sitting fees:

Remuneration Component	Amount
Annual Remuneration	Rs. 10.00 lakh
Sitting Fees (Board Meetings)	Rs. 60,000 per meeting
Sitting Fees (Committee Meetings)	Rs. 40,000 per meeting

The bank has set up an e-voting process for shareholders to cast their votes:

E-voting Period: October 24 to November 23, 2025
Cut-off Date for Voting Eligibility: October 17, 2025
Results Announcement: By November 25, 2025

Professional Background

Mr. Rakesh Joshi brings extensive experience to the bank:

Expertise in Wholesale Banking, Retail Banking, Investment Banking, and Insurance
15 years in Front Office roles, from Junior Trader to Chief Dealer
Strong understanding of Markets and Asset-Liability Management (ALM)
Proven track record in designing and restructuring systems for enhanced growth and profitability

Current Directorships

Mr. Joshi currently serves on the boards of:

The Clearing Corporation of India Limited
Bima Sugam India Federation
Kaustubh Motor works (LLP)

His appointment is expected to bring valuable insights to the bank's board, particularly in areas of risk management, finance, and regulatory compliance.

Shareholders will have the opportunity to vote on this appointment through the e-voting system provided by National Securities Depository Limited (NSDL). This move aligns with Jana Small Finance Bank's commitment to maintaining a strong and diverse board to guide its strategic growth in the competitive small finance banking sector.