Jana Small Finance Bank has reported a 61.61% decline in its standalone net profit for the quarter ended March 2025. The bank’s net profit stood at Rs 35.49 crore in the January-March 2025 quarter, down from Rs 92.13 crore in the corresponding quarter of the previous year.
The bank’s total income declined by 15.62% to Rs 777.46 crore in the March 2025 quarter, as compared to Rs 921.44 crore in the same quarter of the previous year. The bank’s interest income declined by 16.19% to Rs 673.56 crore, while non-interest income declined by 10.47% to Rs 103.90 crore.
The bank’s operating expenses increased by 13.71% to Rs 446.23 crore in the March 2025 quarter, as compared to Rs 392.22 crore in the same quarter of the previous year. The bank’s provisions and contingencies increased by 43.13% to Rs 120.64 crore, as compared to Rs 84.28 crore in the same quarter of the previous year.
Despite the decline in net profit, Jana Small Finance Bank’s asset quality improved during the quarter. The bank’s gross non-performing assets (NPAs) declined to 6.16% of its total advances as of March 2025, as compared to 7.15% as of March 2024. The bank’s net NPAs declined to 2.55% of its total advances as of March 2025, as compared to 3.37% as of March 2024.
The bank’s capital adequacy ratio (CAR) stood at 18.52% as of March 2025, as compared to 19.33% as of March 2024. The bank’s return on assets (RoA) declined to 1.35% in the March 2025 quarter, as compared to 3.13% in the same quarter of the previous year.
Jana Small Finance Bank’s performance during the quarter was impacted by the challenging macroeconomic environment and intense competition in the banking sector. The bank’s management has stated that it is taking steps to improve its asset quality, reduce operating expenses, and increase its digital offerings to customers. The bank is also focusing on increasing its retail lending business, including home loans, personal loans, and credit cards. Despite the decline in net profit, the bank’s improving asset quality and strong capital position position it well for future growth.