We raised Rs 575 crore in total, money to go towards growth of bank: Ajay Kanwal, Jana SFB
Ajay Kanwal, MD & CEO, Jana SFB, says: “Our September 23 NIM was also 7.8%, March was 7.7%. So, we maintained the flattish NIMs growth. We have seen a small rise in cost of funds but thanks to a product mix we are able to make sure the NIMs remain steady. Depending on the outlook on interest rates which I think is now flattish, we should be able to maintain the NIMs at these levels.”
Let us begin with this IPO plan. You have raised Rs 462 crore via the fresh issue. How will that impact your CET ratio? What has been the response from your anchor investors? And congrats on the listing.
Ajay Kanwal: We raised Rs 575 crore in total; Rs 472 crore in public issue prior to that, pre-IPO. Our CET ratio was 17.5% as of September. So now, we will go into the early 20s. So 20 to 23% odd, once we add this capital base too. Like we mentioned in our prospectus, the money will be used to augment our tier 1 capital at the bank, which anyway is strong. And of course, it will go towards the growth of the bank.
Walk us through the business outlook. 57% of your book is with secured loans. This has increased sharply from 42% levels in March 2021. What is the internal target for your secured book and how is it going to play out on your NIMS?
Ajay Kanwal: I want to take you a little back to 2018 when we started the bank. We hardly had any secured books. But we knew our customers really wanted secured loans. So literally from 0% we have in 5.5 years reached 57.8% and clearly from where we sit, the balance sheet of the bank should reflect
