Jana Small Finance Bank Q2 results: Net profit more than doubles to ₹170 crore, NIM improves to 7.5%

Jana Small Finance Bank reported a net profit of ₹170 crore for the second quarter of FY27, compared with ₹75 crore in the year-ago period. Net interest income rose 34.7% year-on-year to ₹819 crore from ₹608 crore. Net interest margin improved to 7.5% from 6.5% a year earlier.
The bank’s gross non-performing asset ratio eased to 2.34% from 2.39% in the previous quarter. However, its net NPA ratio rose to 1.17% from 0.91% sequentially. Loan book and depositsThe bank’s gross loan portfolio stood at ₹38,752 crore, up 22% year-on-year and 3% quarter-on-quarter.

Secured loans accounted for 73.7% of the portfolio, with this segment growing 24% year-on-year and 4% sequentially. Unsecured assets increased 17% year-on-year. Total deposits rose 17% year-on-year and 7% quarter-on-quarter to ₹38,221 crore. The cost of deposits declined to 7.45% in Q2 FY27 from 7.86% a year earlier, a reduction of about 41 basis points.
Current account and savings account deposits grew 13% year-on-year but fell 2% sequentially to ₹6,732 crore. The CASA ratio stood at 18%. Term deposits rose 19% year-on-year and 9% quarter-on-quarter to ₹31,489 crore. The credit-to-deposit ratio stood at 92.7%, compared with 91.4% a year earlier.

After adjusting for refinancing from the National Bank for Agriculture and Rural Development , Small Industries Development Bank of India , National Housing Bank and MUDRA, the ratio was 80.7%. Costs and capitalThe bank’s cost-to-income ratio improved to 64% from 67% in the previous quarter, while operating costs edged down sequentially.
Its capital adequacy ratio stood at 20%, with Tier-1 capital adequacy at 18.2%. Bank targets higher share of secured loansManaging Director and CEO Ajay Kanwal said the bank remained focused on increasing the share of secured assets to 80% and optimising costs.

He added that the bank continued to invest in digital and artificial intelligence-led processes, saw opportunities to expand across secured loan products and would focus on improving its CASA ratio in the second half of the financial year. The bank also said the amount blocked through its Application Supported by Blocked Amount facility, launched in the second quarter of FY26, had crossed ₹10,000 crore since inception.
Jana Small Finance Bank shares fell 1.76% to ₹396 on October 23, after the bank announced its Q2 FY27 results.