Shares of Jana Small Finance Bank spiked 15.37% in today’s early trading session, hitting a new record high of ₹577.20 apiece. This significant increase came on the heels of the company’s strong financial performance for the March-ending quarter and the entire fiscal year of FY 24.
After market hours on Monday, the bank reported a net profit of ₹321.67 crore in Q4FY24, a jump of 297% compared to a net profit of ₹81 crore reported in the same period last year. This was on the back of gains from a tax write-back.
For the full fiscal year FY 24, the bank’s profit after tax (PAT) stood at ₹670 crore, as compared to ₹256 crore in FY23, translating to a growth of 162% year-on-year (YoY). It’s worth noting that the PAT for FY24 includes ₹155 crore of deferred tax assets (DTA) recognized in Q4-FY 24, according to the bank’s earnings report.
Furthermore, the bank’s net interest income (NII) stood at ₹2,127 crore in FY 24 compared to ₹1,660 crore in FY23, marking a significant increase of 28.1% YoY.
Additionally, the bank’s Loan Assets Under Management (AUM) stood at ₹24,746 crore at the end of FY 24, reflecting a notable growth rate of 24.9% YoY.
Its gross non-performing assets (GNPA) improved to 2.0% as of March 31, 2024, from 3.6% as of March 31, 2023, while its net non-performing assets (NNPA) improved to 0.5% as of March 31, 2024, from 2.4% as of March 31, 2023, as per the company’s earnings report.
Commenting on the performance, Mr Ajay Kanwal, MD and CEO of Jana Small Finance Bank, said: “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.”.
Jana Small Finance Bank, classified as a scheduled commercial bank, ranks as the 4th largest small finance bank in India. The company’s shares were listed on the Indian exchanges on February 14 with a listing price of ₹396 apiece, slightly lower than the IPO price of ₹414 apiece.
However, in the subsequent weeks, the stock gained momentum and is currently trading 34.3% higher than its issue price.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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