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Small Bank Sees Profit Collapse Amid Higher Provisions
6 Feb
Summary
- Net profit dropped 91.2% YoY to ₹9.7 crore
- Net interest income increased 13.8% YoY to ₹675 crore
- Gross NPAs decreased to 2.59% sequentially
Jana Small Finance Bank experienced a substantial profit decline in the third quarter, with net profit falling 91.2% year-on-year to ₹9.7 crore. This performance was below expectations, attributed by MD and CEO Ajay Kanwal to higher credit provisioning.
However, the bank's core operations showed resilience. Net interest income (NII) grew by 13.8% year-on-year, reaching ₹675 crore. The asset quality also improved sequentially, with gross non-performing assets (NPA) decreasing to 2.59% from 2.87% in the prior quarter.
Total deposits demonstrated strong growth, up 30% year-on-year to ₹33,733 crore. Looking ahead, the bank anticipates credit costs will moderate from the fourth quarter onwards. Jana SFB, headquartered in Bengaluru, is the fourth-largest small finance bank in India.
