Why Jana Small Finance Bank climbed 18% after Q3FY25 results; details here

Jana Small Finance Bank share price jumped 18.5 per cent at Rs 434.50 a piece on the BSE in Wednesday’s intraday trade. This came despite the bank reporting sluggish performance on the bottom line front. Jana Small Finance Bank Ltd reported a 17.8 per cent year-on-year (Y-o-Y) decline in net profit at Rs 110.6 crore for the third quarter ended December 31, 2024 (Q3FY25).

 

In comparison, the bank had posted a net profit of Rs 134.6 crore in the same quarter of the previous fiscal year. 

 

Despite the decline in profit, the bank's net interest income (NII) experienced an 8.1 per cent increase, reaching Rs 593 crore compared to Rs 548.5 crore in the corresponding quarter of FY24. 

The gross non-performing assets (NPA) ratio improved to 2.80 per cent in the December quarter from 2.97 per cent in the preceding September quarter. Similarly, the net NPA ratio decreased to 0.94 per cent from 0.99 per cent on a sequential basis.

 

As of December 2024, the bank's total asset under management (AUM) stood at Rs 27,984 crore, marking a 19 per cent Y-o-Y growth in Q3FY25, with secured assets making up 68 per cent of the total.

 

Total deposits reached Rs 25,865 crore, reflecting a 24 per cent Y-o-Y increase in Q3FY25, while Current Account and Savings Account (CASA) deposits grew by 22 per cent Y-o-Y to Rs 4,768 crore. Meanwhile, term deposits saw a 25 per cent Y-o-Y increase in the December quarter of FY25.

 

However, the CASA ratio declined to 18.4 per cent as of December 2024, down from 19.7 per cent in March 2024, attributed to reductions in interest rates.

 

The bank maintained a solid capital position, with a Capital Adequacy Ratio (CRAR) of 18.4 per cent and a Tier-1 CRAR of 17.5 per cent. Including the profits from 9M FY25, the overall CRAR rose to 20.4 per cent. 

 

The bank reported an annualised Return on Assets (ROA) of 1.5 per cent and a Return on Equity (ROE) of 13.5 per cent. Liquidity remained strong, with a Liquidity Coverage Ratio (LCR) of 279 per cent.

 

Jana Small Finance Bank has a total market capitalisation of Rs 4,458.88 crore. At 10:12 AM, the stock price of the company was up 16.17 per cent at Rs 425.70 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.46 per cent to 76,190.81 level.