Jana Small Finance Bank Q2FY26 profit drops 22.7% YoY to ₹75 cr; deposits up 31%, loan book grows 20%

The bank’s gross loan portfolio (GLP) expanded 20 percent year-on-year to ₹31,655 crore, while deposits surged 31 percent to ₹32,532 crore.

Secured loans rose 34 percent and now make up 73 percent of the total book. The bank’s capital adequacy ratio remained healthy at 19.7 percent, with Tier-I capital at 18.8 percent.

During the quarter, Jana SFB’s interest income rose to ₹1,305 crore from ₹1,166 crore in the year-ago period.

Net interest income increased modestly to ₹618 crore from ₹594 crore, while operating income stood at ₹866 crore.

Operating expenses climbed to ₹587 crore, leaving an operating margin of ₹279 crore.

Provisions and contingencies were ₹204 crore, up marginally from ₹196 crore in the previous quarter, leading to a profit before tax of ₹75 crore.

Gross non-performing assets (GNPA) and net NPA were stable at 2.8 percent and 0.9 percent, respectively, with a provision coverage ratio (PCR) of 82 percent including technical write-offs.

The bank’s profitability metrics softened during the quarter, with net interest margin easing to 6.6 percent from 7.7 percent a year earlier.

Cost-to-income ratio rose to 67.8 percent from 61.2 percent in Q2FY25. Return on average assets (annualised) dropped to 0.7 percent, and return on average equity fell to 7.1 percent.

Managing Director and CEO Ajay Kanwal said the first half of FY26 “reflects strong business momentum” supported by growth in deposits and advances.

He noted that profitability was “relatively softer due to accelerated provisioning” undertaken to maintain NNPA below one percent, and added that the shift toward a predominantly secured portfolio would help lower credit costs going forward.