Jana Small Finance Bank Stock Falls on Q1 FY26 Earnings
Shares of Jana Small Finance Bank fell by over 6.28% on Wednesday in response to the weaker-than-expected earnings for the first quarter of FY26.
Financial Performance
The Bengaluru-based bank reported a net profit of Rs 101.9 crore for the April–June period, a significant 40.2% decrease from Rs 170.5 crore in the same quarter last year. The company attributed this decline to higher operating costs and a less favorable revenue mix. The net interest income (NII), a crucial measure of a bank’s core earnings, also saw a 2.4% year-on-year decrease to Rs 595 crore.
Asset Quality
The bank experienced a slight decrease in asset quality, with gross non-performing assets (NPAs) increasing to 2.91% from the previous quarter’s 2.71%. However, net NPAs remained stable at 0.94%, indicating consistent recoveries and provisions.
Bank Operations
Jana Small Finance Bank, established in 2018 following its transition from a microfinance institution, targets underserved and financially excluded segments across India. It offers retail banking, MSME lending, and financial inclusion products through a mix of branches and digital channels. Despite expanding its reach, the bank faces common challenges such as cost pressures and asset quality fluctuations.
