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Jana Small Finance Bank Shares Report a Record Growth on Strong Q4 Earnings

Submitted by admin on May 2nd, 2024

Jana Small Finance Bank’s shares registered 15.37% growth in Tuesday’s early trading session, reaching a record high of Rs 577.20 apiece. The significant increase followed the company’s impressive financial performance for the quarter ending in March and the entire fiscal year of 24.

After market hours were over on Monday, the bank reported a 297% jump to gain a net profit margin of Rs 321.67 crore in Q4FY24, compared to last year’s reported net profit of Rs 81 crore during the same period. This came close on the heels of gains from a tax write-back.

The bank reported that their profit after tax (PAT) stood at Rs 670 crore, compared to Rs 256 crore in the financial year 2023, culminating in 162% growth year-on-year. It’s worth mentioning that the PAT for the financial year 24 includes Rs 155 crore of DTA (deferred tax assets) recognized in Q4-FY 24, as per the bank’s earnings report.

Moreover, the bank’s net interest income was Rs 2, 127 crore in financial year 24 compared to Rs 1, 660 crore in financial year 23, reporting a significant spike of 28.1% YoY.  Additionally, the bank reported its Loan Assets Under Management of Rs 24, 746 crore at the end of financial year 24, projecting a remarkable growth rate of 24.9% YoY.

Its gross non-performing assets surged 2.0% on March 31, 2024, as against a 3.6% rise as of March 31, 2024, while its net non-performance assets made a 0.5% improvement as of March 31, 2024, from 2.4% as of March 31, 2024.

“Our transformation to a customer-led franchise serving aspirational India is showing strong acceptance and success. We continue to focus on meeting the needs of the underserved, from deposits to loans, with the optionality of fully digital processes across all products.

Our risk diversification has resulted in 60% of our loan book being classified as secured, primarily in the Home Loan and Loan Against Property (LAP) products. We foresee a huge opportunity for our business model and will strive to continue on this path with high standards of governance and customer service,” said Mr Ajay Kanwal, MD and CEO of Nana Small Finance Bank while commenting on the bank’s performance.

Jana Small Finance Bank is classified as a scheduled commercial bank. It ranks as the 4^th largest small finance bank in India. On February 14, 2024, the company’s shares were mentioned on the Indian Exchanges with a listing price of Rs 396/piece, a little lower than the IPO price of Rs 414/piece.

However, in the following weeks, the stock reported momentum and is currently going strong, up 34.3% from its original issue price.