1. At a Glance
Once a microfinance hustle, now a ₹4,710 Cr revenue powerhouse with universal banking dreams, Jana SFB is low-key flexing a 13% ROE, 47.73 EPS, and 20%+ deposit growth. But with just 22% promoter holding and a volatile NP margin, the plot thickens.
2. Introduction with Hook
Imagine if a tiny local kirana store suddenly applied to become a Walmart. That’s exactly what Jana Small Finance Bank (JSFB) is doing.
This formerly loss-ridden microfinance firm is now chasing a universal bank license, has over ₹29,000 Cr in deposits, 4.5 million customers, and a solid 776-branch presence — 37% of which are in unbanked rural India.
- FY25 Net Profit: ₹501 Cr
- CAGR in profit (5 yrs): 72.4%
- Valuation: Just 10.3x earnings
If Cinderella wore banking shoes, this would be it.
3. Business Model (WTF Do They Even Do?)
JSFB is a full-stack small finance bank with:
- Asset Side:
– MSME loans
– Housing loans
– Gold loans
– Microfinance lending - Liability Side:
– Retail savings
– Term deposits
– CASA ratio improvement in focus - Fee Income:
– Insurance tie-ups (like Kotak Life)
– Cross-selling credit & debit cards
Jana is unique in having 37% of its outlets in unbanked rural centres — regulatory brownie points galore.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROE (%) | Gross NPA (%) |
|---|---|---|---|---|---|
| FY21 | ₹2,498 | ₹84 | ₹16.62 | 10% | 6.38% |
| FY22 | ₹2,727 | ₹5 | ₹1.07 | 1% | 3.94% |
| FY23 | ₹3,075 | ₹256 | ₹50.46 | 20% | 2.94% |
| FY24 | ₹4,013 | ₹670 | ₹64.02 | 26% | 2.80% |
| FY25 | ₹4,710 | ₹501 | ₹47.73 | 13.1% | 2.71% |
Takeaway: Massive revenue jump. NPA reduced. ROE stabilizing after peaking. EPS looking comfy at 47.73.
5. Valuation
Current Price: ₹490
EPS (TTM): ₹47.73
P/E: 10.3x
Book Value: ₹389
Fair Value Range:
- P/E 12x = ₹572
- P/E 15x = ₹716
- P/E 18x = ₹859
CMP / Book Value: 1.26x → Still low for a bank with 4.5 million customers and improving margins.
6. What’s Cooking – News, Triggers, Drama
- July 2025: Upcoming Q1 results (July 22)
- June 2025: Applied to RBI to convert into a universal bank
- FY25: ₹5.26 Cr tax refund won
- FY24: Partnered with Kotak Life Insurance
- May 2024: Dvara Money tie-up for rural digital banking
- Resignation Dramas: COO and other exec exits in early 2025 → May hint transition pains
Biggest upcoming catalyst? RBI’s nod for universal status. That could re-rate this stock in a blink.
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹55 Cr | ₹105 Cr | ₹105 Cr |
| Reserves | ₹1,472 Cr | ₹3,473 Cr | ₹3,987 Cr |
| Deposits | ₹16,334 Cr | ₹22,571 Cr | ₹29,120 Cr |
| Borrowings | ₹6,547 Cr | ₹5,211 Cr | ₹3,867 Cr |
| Total Liabilities | ₹25,644 Cr | ₹32,710 Cr | ₹38,464 Cr |
Deposits up 2x in 2 years. Borrowings going down. Equity raised smartly in FY24. Balance sheet cleanup in action.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | -₹1,137 Cr | -₹434 Cr | ₹2,104 Cr | ₹532 Cr |
| FY24 | ₹707 Cr | -₹780 Cr | ₹33 Cr | -₹40 Cr |
| FY25 | ₹4,073 Cr | -₹321 Cr | -₹1,331 Cr | ₹2,421 Cr |
FY25 was cash-heavy — deposit mobilization spiked. Investing cash outflow = likely tech + infra.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 20% | 26% | 13.1% |
| ROA | 1.58% | 1.65% | 1.41% |
| Gross NPA | 2.94% | 2.80% | 2.71% |
| Net NPA | 1.19% | 0.94% | 0.94% |
| CASA (est.) | ~15% | ~18% | ~20%+ |
Not stressy. ROE dipped due to base effect of higher equity. NPAs inching down = good sign.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | Interest Cost | Net Profit | EPS |
|---|---|---|---|---|
| FY21 | ₹2,498 Cr | ₹1,235 Cr | ₹84 Cr | ₹16.62 |
| FY22 | ₹2,727 Cr | ₹1,337 Cr | ₹5 Cr | ₹1.07 |
| FY23 | ₹3,075 Cr | ₹1,415 Cr | ₹256 Cr | ₹50.46 |
| FY24 | ₹4,013 Cr | ₹1,886 Cr | ₹670 Cr | ₹64.02 |
| FY25 | ₹4,710 Cr | ₹2,317 Cr | ₹501 Cr | ₹47.73 |
Non-interest income (₹776 Cr in FY25) plays a big role. Banking in rural India is hard, but it pays off.
11. Peer Comparison
| Bank | Price | P/E | ROE | Deposits (₹ Cr) | GNPA % | EPS |
|---|---|---|---|---|---|---|
| AU SFB | ₹791 | 28x | 14.2% | ₹1.6L Cr | 1.3% | ₹28 |
| Ujjivan SFB | ₹48.7 | 13x | 12.4% | ₹6.3K Cr | 3.1% | ₹3.6 |
| Equitas SFB | ₹63 | 49x | 2.4% | ₹6.3K Cr | 3.4% | ₹1.29 |
| Jana SFB | ₹490 | 10.3x | 13.1% | ₹29K Cr | 2.7% | ₹47.73 |
Conclusion: Jana is criminally undervalued. EPS > peers. ROE > peers. P/E < peers. But low promoter stake holds back momentum.
12. Miscellaneous – Shareholding, Promoters
| Holder | Mar 2024 | Jun 2025 |
|---|---|---|
| Promoters | 22.54% | 21.88% ↓ |
| FIIs | 0.89% | 0.28% ↓ |
| DIIs | 15.89% | 16.03% ↑ |
| Public | 60.94% | 61.81% ↑ |
Red Flags:
- Promoter stake down
- FIIs seem uninterested
Green Flags:
- DIIs stable
- Public interest strong
- RBI universal bank decision pending = game-changer
13. EduInvesting Verdict™
Jana SFB isn’t just another rural loan machine. It’s a bank in transformation — with explosive revenue growth, NPAs under control, and a shot at becoming India’s next universal bank.
Yet, it’s cheap. Why? Because legacy losses haunt investor memory. Add a promoter stake below 22% and no dividend policy — and the stock gets ignored.
But FY25’s ₹501 Cr profit, ₹47 EPS, a deposit base of ₹29,000 Cr, and clean operations tell a different story.
A rerating isn’t just likely — it’s brewing.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: Jana, Small Finance Banks, Universal Bank, Rural Banking, Undervalued Banks, Microfinance, RBI License
