Jana Small Finance Bank shares shrug off heavy sell-off in broader market, zoom 20%; here is why

At the time of writing this report, the BSE MidCap index was trading at 42,212.38 levels, down 955.01 points, or 2.21%, while the BSE SmallCap index was trading 1,306.83 points, or 2.53%, lower at 50,407.79.

Shares of the lender jumped as much as 19.7% to ₹438.65 apiece on the BSE. The stock was in heavy demand after the company reported its numbers for the quarter ending December 31, 2024 (Q3 FY25) on Monday.

As per the company's earnings presentation, Jana Small Finance Bank logged a profit after tax (PAT) of ₹111 crore during the quarter under review against ₹97 crore reported in the September 2024 quarter.

Its net interest income (NII) came in at ₹593 crore from ₹594 crore registered in the previous quarter.

Operating income stood at ₹770 crore. In the September 2024 quarter, the lender posted an operating income of ₹769 crore. Its profit before tax came in at ₹105 crore against ₹88 crore in Q2 FY25.

The bank registered a 24.4% YoY growth in its total deposits to ₹25,865 crore. On a sequential basis, it grew by 4.3%.

Its current account and savings account (CASA) deposits grew by 22% YoY to ₹4,768 crore. Meanwhile, term deposits saw a 25% YoY increase in the December quarter of FY25.

However, the CASA ratio declined to 18.4% as of December 2024, down from 19.7% 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% and a Tier-1 CRAR of 17.5%. Including the profits from 9M FY25, the overall CRAR rose to 20.4%.

Jana Small Finance Bank shares were listed on the stock exchanges on February 14, 2024.

The initial public offering (IPO) of Jana Small Finance Bank received 18.50 times subscription on the closing day of the share sale.

The Bengaluru-headquartered firm's IPO had a fresh issue of up to ₹462 crore and an offer for sale (OFS) of up to 26,08,629 shares. Shares were available for bidding in the price range of ₹393-₹414 apiece.

Jana Small Finance Bank garnered ₹167 crore from anchor investors on February 6.

"The bank will use the money from the fresh issue to augment its core capital to meet future capital requirements and improve its capital adequacy ratio," it had said.