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Jana Small Finance Bank Q1 net profit surges 90%. Stock climbs 4%
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2 min read | Updated on July 22, 2024, 20:04 IST
SUMMARY
Shares of Jana Small Finance Bank jumped 4% after the company reported a 90% YoY rise in net profit in Q1. The bank’s net interest income rose 32.03% YoY while operating profit was up 30% YoY.
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Jana Small Finance Bank Q1 net profit surges 90%. Stock climbs 4%
Current and Savings Accounts (CASA) deposits jumped 47% YoY to ₹4,846 crore, while the CASA ratio stood at 20.4%. The bank also reported a 40% YoY growth in term deposits.
However, the bank reported an increase in gross non-performing assets (GNPA), which came in higher at 2.5%. The bank stated that the slight increase in GNPA was event-driven and seasonal. The net non-performing assets (NNPA) at the end of Q1 stood at 0.9% while the provisioning coverage ratio (PCR) was 62.7%.
Providing guidance for the future, the bank is aiming for a 20% growth in AUM and 20% growth in deposits. The bank is also targeting profitability growth of 30% to 40%. The bank has pegged the Return on Assets (ROA) from 1.8% to 2.1% and the Return on Equity (RoE) between 19% to 21%.
Ajay Kanwal, managing director and chief executive officer of Jana Small Finance Bank, said that the bank will focus on the slight rise in GNPA it saw during the quarter.
“Jana Small Finance Bank (Jana SFB) delivered a solid quarter growing secured assets and deposits with focus on CASA. We have a small rise in GNPA which we believe is seasonal and event-driven, this will nevertheless get our full attention in the following quarters,” he said.
Shares of the company have risen by nearly 89% since the beginning of the year.
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