Jana Small Finance Bank Q4 Results: Net profit doubles to Rs 167 crore
Jana Small Finance Bank has reported doubled its March quarter net profit from ordinary activities at Rs 167 crore against Rs 81 crore in the year ago period, backed by robust business expansion and lower credit cost.
The net profit however comes to Rs 344 crore, reflecting a four-fold jump, if the deferred tax assets of Rs 170 crore is included.
Its net interest margin, a key gauge of profitability, improved to 8% for the full year from 7.8% in FY23.
Its operating profit for the quarter was 22% higher year-on-year at Rs 342 crore, on a total income of Rs 1291 crore against Rs 1010 crore earlier.
The bank's assets under management expanded 25% year-on-year to Rs 24746 crore at the end of March with the secured portfolio rising to 60%.
«We worked on to de-risk the portfolio and intend to raise the share of the secured book to 80% in the next three years,» managing director Ajay Kanwal told ET.
The bank's gross non-performing assets ratio fell to 2% at the end of March from 3.6% a year-back. Net NPA was 0.5% against 2.4%.
«We will need another year to become eligible to apply for a universal banking license,» Kanwal said. The Reserve Bank of India said small finance banks need to have less than 3% gross NPA and less than 1% net NPA for two consecutive fiscals to become eligible for universal banking license.
The bank's total deposits rose 38% year-on-year to Rs 22,571 crore at the end of March, with the share of low cost current and savings accounts being at 20% of the total deposit.
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