1. At a Glance
Jana Small Finance Bank (JSFB) just clocked ₹102 Cr PAT in Q1 FY26, with 16% YoY loan growth and a not-so-humble application for Universal Bank status. But under the surface, margins are whispering, promoters are slowly ghosting, and deposits aren’t running laps.
2. Introduction with Hook
Imagine a bank that started off as a microfinance underdog, got crushed by GNPA nightmares, revived with fintech steroids, and now thinks it’s ready for the big leagues. That’s Jana Bank for you.
- Q1 FY26 PAT: ₹102 Cr
- 5Y PAT CAGR: 72%
- GNPA: ~2.91%, NPA: <1%
- Universal Bank license application: Filed & flexed.
3. Business Model (WTF Do They Even Do?)
JSFB is a Small Finance Bank, but don’t let that fool you:
- Retail Lending: 85%+ focus (MSME, MFI, Agri, Home Loans)
- Deposit-Led Funding: 29k Cr+ deposits, up 7x since FY20
- Digital Channels: App, banking correspondents, and assisted banking
- Unbanked Push: 776 outlets, 37% in unbanked rural centers
- No corporate lending: Mostly low-ticket loans with high spreads
It’s the kind of bank where your “Ghar ki Dukan” and “kirana invoice” gets underwritten.
4. Financials Overview
| Metric | FY22 | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 2,727 | 3,075 | 4,013 | 4,710 | 4,793 |
| PAT (₹ Cr) | 5 | 256 | 670 | 501 | 433 |
| EPS (₹) | 1.07 | 50.46 | 64.02 | 47.73 | 41.25 |
| ROE (%) | 1% | 20% | 26% | 13% | 13.1% |
Key Insight:
Explosive turnaround in FY23–24, but FY25 & Q1 FY26 suggest growth stabilizing, not accelerating.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹492 |
| Book Value | ₹389 |
| P/B | 1.26x |
| P/E (TTM) | 11.96x |
| ROE | 13.1% |
Fair Value Range:
- P/B @ 1.3–1.7x = ₹505 – ₹660
- P/E @ 10–14x = ₹412 – ₹577
Conclusion:
Not expensive. Market seems to doubt scalability or licensing clarity.
6. What’s Cooking – News, Triggers, Drama
- Universal Bank license: Application submitted
- Q1 FY26 PAT: ₹102 Cr, EPS ₹9.69
- Loan book growth: 16% YoY
- NPA Control: GNPA 2.91%, NNPA under 1%
- No dividend: Reinvesting earnings
- Promoter holding shrinking: 22.5% → 21.88% in 1 quarter
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Worth | ₹1,527 Cr | ₹3,578 Cr | ₹4,092 Cr |
| Deposits | ₹16,334 Cr | ₹22,571 Cr | ₹29,120 Cr |
| Borrowings | ₹6,547 Cr | ₹5,211 Cr | ₹3,867 Cr |
| Advances | ₹20,295 Cr | ₹25,831 Cr | ₹32,366 Cr |
| Total Liabilities | ₹25,644 Cr | ₹32,710 Cr | ₹38,464 Cr |
Takeaway:
Leverage is decreasing, CASA not yet elite, but deposit growth is healthy.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| 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 |
Conclusion:
Positive operating cash flow = finally behaving like a bank.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE (%) | 20% | 26% | 13% |
| ROA (%) | 1.65% | 1.41% | 1.41% |
| GNPA (%) | 2.44% | 2.11% | 2.91% |
| NNPA (%) | 0.87% | 0.56% | 0.94% |
| CASA Ratio | ~20% | ~21% | ~22% (est) |
Conclusion:
Healthy profitability. Slight tick-up in NPA in Q1 FY26 is worth watching.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue | PAT | EPS | GNPA | NNPA |
|---|---|---|---|---|---|
| Q1 FY25 | ₹1,167 Cr | ₹171 Cr | ₹16.31 | 2.62% | 0.99% |
| Q4 FY25 | ₹1,199 Cr | ₹123 Cr | ₹11.75 | 2.71% | 0.94% |
| Q1 FY26 | ₹1,250 Cr | ₹102 Cr | ₹9.69 | 2.91% | 0.94% |
Trend:
Revenue up, PAT down = margin compression + provisioning pressure.
11. Peer Comparison
| Bank | P/E | ROE % | PAT (₹ Cr) | GNPA | P/B | M-Cap (₹ Cr) |
|---|---|---|---|---|---|---|
| AU SFB | 24.7 | 14.2 | 2,184 | ~2% | 3.15x | 54,077 |
| Ujjivan SFB | 12.6 | 12.4 | 726 | ~2.8% | 1.5x | 9,131 |
| Equitas SFB | 48.6 | 2.4 | 147 | ~2.3% | 1.18x | 7,151 |
| Jana SFB | 12.0 | 13.1 | 433 | 2.9% | 1.26x | 5,175 |
Conclusion:
Jana is mid-sized, mid-valued, and mid-risk. But definitely not mid-interesting.
12. Miscellaneous – Shareholding, Promoters
| Group | Mar ’24 | Jun ’24 |
|---|---|---|
| Promoters | 22.28% | 21.88% |
| FIIs | 0.89% | 0.28% |
| DIIs | 15.89% | 16.03% |
| Public | 60.94% | 61.81% |
Key Points:
- FII exit → red flag?
- Public holding rising → retail crowd bullish
- Promoter stake dipping – below psychological 22%
13. EduInvesting Verdict™
Jana SFB is at a crossroads: it’s not tiny, not large, but incredibly ambitious. The Universal Bank application could be a game changer—or a bureaucratic waiting game.
The fundamentals? Respectable.
The risks? NPA creep + promoter dilution
The potential? If RBI blesses them, re-rating is possible.
But for now, it’s one to watch like a hawk, not chase like a FOMO monkey.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: Jana Bank, JSFB, Small Finance Bank, Universal Banking, Q1 FY26, EduInvesting
