Jana Small Finance Bank Posts Robust Q1 FY27 Results, PAT at ₹155 Crore
Mumbai: Jana Small Finance Bank Limited has reported a strong start to FY2026-27, posting a Profit After Tax (PAT) of ₹155 crore for the quarter ended June 30, 2026. The lender delivered healthy profitability, supported by an improvement in net interest margins, lower funding costs, stronger deposit growth, and improving asset quality.
The bank said its Net Interest Margin (NIM) improved to 7.5%, reflecting a 50 basis point year-on-year decline in the cost of funds, lower unsecured loan slippages, and a reduction in interest income held in suspense due to lower non-performing assets.
Q1 FY27 Financial Highlights
Jana Small Finance Bank reported healthy operational and business growth across key parameters during the first quarter.
- Profit After Tax (PAT): ₹155 crore
- Net Interest Margin (NIM): 7.5%
- Cost of Funds: Down 50 basis points year-on-year
- Net Credit Cost: 0.45%, remaining stable sequentially
- Secured Asset Portfolio Growth: 29%
- CASA Deposits Growth: 31% year-on-year
- Loan Slippages: Lower both year-on-year and quarter-on-quarter
The strong performance highlights the bank’s continued focus on improving profitability while maintaining disciplined risk management.
Asset Quality Continues to Improve
Management indicated that the stress in the microfinance portfolio has largely subsided after navigating a challenging operating environment over the past few quarters.
The bank reported its second consecutive quarter of growth in unsecured assets, signalling renewed business momentum. While Special Mention Accounts (SMA) increased marginally during the seasonally weak first quarter, overall asset quality remained healthy with lower slippages compared to both the previous quarter and the corresponding period last year.
The reduction in non-performing assets also contributed positively to earnings by lowering the amount of interest income classified as interest in suspense.
Strong Deposit Franchise Supports Growth
Jana Small Finance Bank continued to strengthen its liability franchise during the quarter.
Total deposits registered healthy year-on-year growth, with Current Account and Savings Account (CASA) deposits increasing 31%, reflecting deeper customer engagement and a growing retail deposit base.
The improvement in low-cost deposits helped reduce the overall cost of funds, supporting the bank’s higher net interest margin.
Capital Raise to Strengthen Balance Sheet
The bank is also in the process of raising ₹728 crore in fresh capital to support future business expansion and maintain a strong capital adequacy position.
According to the management, ₹103 crore has already been received, with the remaining capital expected to further strengthen the balance sheet and support sustained loan growth.