 "Jana Small Finance Bank drops 11% after 21% decline in Q2FY25 net profit")
Jana Small Finance shares plunged 10.8 per cent in Tuesday's trade on the BSE after the company reported a dip of 21 per cent in profit after tax (PAT) in the second quarter (Q2FY25) of the current financial year. The company's results were released after market hours on Monday.
At around 12:41 PM, Jana Small Finance shares were down 9.18 per cent at Rs 464 per share. In comparison, the BSE Sensex was down 0.53 per cent at 80,717.14 around the same time. The market capitalisation of the company around the time stood at Rs 4,852.99 crore.
The small finance bank reported a dip of 21 per cent in its net profit at Rs 96.7 crore for the second quarter that ended on September 30, 2024.
Jana Small Finance Bank had posted a net profit of Rs 122.8 crore in the corresponding quarter of the previous year.
The banks' total expenditure increased 21.35 per cent year-on-year (Y-o-Y) to Rs 1,042.96 crore as compared to Rs 859.49 crore a year ago.
As per the company's exchange filing, the bank's deposits grew 31 per cent YoY and 10 per cent in the six months to September 2024, while its term deposit and Current Account and Savings Account (CASA) grew 9 per cent and 12 per cent, respectively.
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The bank’s capital adequacy ratio (CAR) stood at 18.8 per cent, with a tier-1 CRAR of 17.8 per cent. Its liquidity coverage ratio (LCR) remained strong at 261 per cent.
Jana Small Finance's cost to income ratio stood at 58.3 per cent during the quarter under review, while return on assets (ROA) came in at 1.6 per cent, and return on equity (ROE) was at 14.5 per cent.
The bank's total advances grew 17 per cent Y-o-Y, and 7 per cent in H1FY25.
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Jana Small Finance Bank is a small finance bank in India that focuses on providing financial services to underserved and un-banked sections of the population. It was established in 2006 and received its banking license from the Reserve Bank of India in 2017.
Jana Small Finance Bank aims to cater to low- and middle-income individuals, small businesses, and micro-enterprises. It offers various savings account options with competitive interest rates.
The bank provides personal loans, business loans, and microfinance solutions along with fixed deposits and recurring deposits with attractive interest rates.
Since its listing on February 14, 2024, Jana Small Finance Bank shares have gained 38.4 per cent, compared to the BSE Sensex's rise of 13 per cent during the same period.