Jana Small Finance Bank Ltd Q1 FY27 Results

PAT ₹155.2 Cr delivered; NIM stated 7.5% in call, unverified in results

Secured loan growth 29% stated; within prior guidance band

Slippages: ₹155 Cr to ₹125 Cr = 19% reduction, rounding 20%

Q1 is 52.3% YoY; to hit 80%+ annualized, Q2–Q4 must average >110% growth

Q1 deposit growth flat; April–May pricing pressure conceded; June recovery claimed but unproven

Nov 2024 decision to put unsecured under guarantee; now 79.8% (~80%) of ₹10.2Cr MFI book covered, reducing credit tail risk meaningfully

5 consecutive quarters of slippage decline; Q1 slippages ₹125 Cr (down 20% QoQ from ₹155 Cr); management confident trajectory sustainable

Q1 secured loan growth 29% (high end of 25–30% guidance); multiple products (gold +100% YoY at ₹2.7Cr, MSME building, affordable housing, two-wheeler)

Q1 deposit growth flat (missed 23–25% guidance); management explains April–May pricing pressure, June recovery plan, but full-year 23–25% reiterated (execution risk remains)

CoF declined 60bps YoY to 7.4%, but management now guides 7.3–7.4% flat for rest of year; NIM expansion from CoF drop is exhausted

Q1 Micro LAP negative growth; management pivoting model to direct sourcing; expects return to positive Q2 onward (strategic, not forced)

Unsecured slippages down 20% QoQ (₹155 Cr to ₹125 Cr); expecting flat Q2 (due to collection focus in Q1), then small drops Q3/Q4. Collections-heavy now; recovery will improve Q2.

0.45% flat to Q4; expect at minimum 0.45% maintained across remaining quarters. Gross NPA down QoQ/YoY, provisioning flattish to down-ish.

Nothing. Micro LAP slowdown is intentional model shift to direct sourcing. Affordable and MSME doing fine. No Iran/El Nino impact (July 15; collections majority in).

Portfolio ₹2,678 Cr (100%+ YoY); LTV 64% (within regulatory limit). Daily price feeds, margin calls mitigate. GNPA ~0.5%, fully collateral-covered. Expect 50–75 new branches in 2Q.

Q1: 2.8% QoQ, 18% YoY. Book ₹10.2Cr stable (5 consecutive quarters declining slippages). FY27: 10–12% growth (conservative, not aggressive).

CASA grew 7% QoQ, 31% YoY. RCB won championship (fortunate timing); extended advertising till last match, high ROI. First such program; may repeat with RCB.

Will claim ₹65 Cr in Q3. Net unsecured NPA ₹214 Cr; ₹196 Cr guaranteed (91% cover), ₹18 Cr uncovered. Timing difference on claims, but largely protected.

Launched Oct 2025; reached ₹45 Cr monthly disbursement in ~50 cities. Potential 240 cities. Consolidating first 50 (70% market). Core financing only, no BT/refinance yet.

Credit Line on UPI: Q2 launch (mass-scale product). Loans against shares: Q2 (RBI approved ₹1 Cr). Nostro: Setup this month. FCNR(B): Maybe Aug/Sept if comfortable.

Add MSME (strong buildup, 2% Q1 but Q2 expected strong). Affordable continues, two-wheeler continues (TVS tie-up advantage), gold no change. Micro LAP negative Q1, positive Q2. Unsecured growth slower (Q1 weak quarter).

Flat due to bulk deposit reduction (-6%); CASA +7.1% QoQ, retail TD +2.3% offset by bulk. April/May pricing pressure; June rates raised. FY27 guidance 23–25% maintained; expecting better H2.

Declined 4–5 quarters; now stabilizing at 7.3–7.4% range. Opportunity to drop is over. Slight rate increases made in June; growth (bulk/retail) will also contribute to stabilization.

Currently 66.7–67%. Cost grew only 1.6% Q1; nominal growth expected. Will not go below 60%, but will reach 63–65% range for FY27.

No material impact. Portfolio diversified across geographies. MFI ~27% monitored closely (early warning, stress testing). Well-positioned to respond if conditions deteriorate (underwriting, collection effort).

No comment on market speculation.

7% every quarter unrealistic. YoY 31%, target CASA ratio ~20% for FY27. Growth will exceed term deposit growth, all efforts underway.

Not recovered yet. But state government put bank back on empanelment list. Expect flow Q2 (marginal start). Timing/pace uncertain, but positive side: will definitely get flow.

No direct financial/operational impact. No cost default linkage, no liability on bank to pay promoter debt. Bank independently governed, no common directors. Only relationship: 16.95% holding.

Secured loan 29% Q1 (high end of historical range); multiple products accelerating (gold, MSME, affordable); unsecured 10–12% conservative target

Q1 flat; April–May pricing pressure conceded. June rate hikes signaled. Management has maintained this rate historically but execution risk evident

Recovered from stress level; CoF now stabilizing (no more drop benefit); NPA slippage benefit may plateau

Explicit guidance; 60bps YoY drop exhausted; deposit growth & slight rate increases will stabilize

7 executed Q1; mix designed for operational efficiency (split branches = lower people cost; relocations for better locations)

Part of 78-branch plan; phased rollout; gold headcount expanding

Q1 deposit growth flat despite 23–25% guidance; April–May pricing hardness conceded. CoF stabilizing at 7.3–7.4% (no further drop benefit). Deposit growth momentum at risk if market remains tight.

Unsecured slippages down 20% QoQ, but 5-quarter decline trend and 80% guarantee coverage suggest confidence. However, Q1 was collections-heavy (low slippage); Q2 may see marginal uptick as recovery deferred. Full-year 80%+ PAT guidance assumes slippage stabilization.

Q1 PAT ₹155 Cr is 52.3% YoY; FY27 guidance 80%+. Requires Q2–Q4 to average >110% growth, suggesting H2 significantly stronger than H1. If unsecured book re-stresses, cost control disappoints, or deposit growth misses, target at risk.

Cost-to-income 67% currently; guidance 63–65% for FY27. Requires 200–400 bps improvement. Guarantee commission (₹80–100 Cr est.) is now BAU cost, inflating ratio. Cost control must offset revenue growth slippage if deposits lag.

Iran conflict and El Nino weather risk flagged by analysts. Portfolio diversified, but MFI ~27% of book (weather-sensitive), unsecured 20% (concentrated in certain geographies). Management confident no material impact yet (July 15 call).