Jana Small Finance Bank Doubles FY27 Profit Guidance to 100% Growth as Q2 Profits Surge

Key numbers

Net Profit (H1)	₹326 CrMatches Full FY26 PAT
NII Growth	35%Year-on-Year
Cost of Funds	7.4%Down from 7.9% YoY
RSI	26.7Oversold Zone

Key highlights

• Management doubled full-year PAT growth guidance to 100% for FY27, up from a previous target of 80%.
• Net Interest Income (NII) surged 35% year-on-year, supported by a significant drop in cost of funds to 7.4%.
• Secured assets now comprise 73.7% of the total loan portfolio, as the bank targets an 80% threshold.
• The Gross Loan Portfolio reached ₹38,752 crore as of September 30, 2026, representing a 22% YoY increase.
• Total deposits grew 17% YoY to ₹38,221 crore with a Credit-to-Deposit (CD) ratio of 92.7%.

Strategic Pivot Toward Secured Lending Mix

Jana Small Finance Bank continues to execute a strategic pivot toward secured assets, which reached 73.7% of the portfolio in Q2 FY27. This shift is driven by robust growth in affordable housing loans, which grew 28.2% year-on-year, and MSME lending, up 20.6%. By focusing on secured segments, the bank is successfully de-risking its balance sheet and improving yield stability.

Management reported that 97% of its microfinance customers now have exposures to two or fewer lenders, a more conservative threshold than the industry average of 93%. This cautious approach in the unsecured segment is intended to mitigate credit risks arising from regional challenges such as drought impacts in Karnataka and Maharashtra.

Operational Efficiency and Asset Quality

• Net interest margins (NIMs) stabilized at 7.5%, benefiting from a 50 basis point reduction in cost of funds.
• Operational efficiency improved with a 20% positive jaws effect as revenue growth significantly outpaced cost increases.
• The bank reported a Gross NPA of 2.17%, while Net NPA stood at 1.08% as of the September quarter.
• Management has lodged ₹68 crore in guarantee claims which, once realized, are expected to bring Net NPA below 1%.
• The CASA ratio remains a focus area for the second half of the year following a 13% YoY growth in absolute CASA balances.

Upgraded Growth Outlook

Having seen our Q2 performance which now if you add the Q1 it reaches 326 crores which is equal to the PAT of last year... hence we would like to take our guidance up which was originally an increase of 80% in PAT to 100% of PAT.

What to watch next

• Launch of 'Credit Line on UPI' and Wealth Management services slated for Q3 FY27.
• Realization of ₹68 crore in guarantee claims expected to reduce Net NPA below 1% by Q3 FY27.
• Reopening of the CGTMSE portal for fresh microfinance guarantee additions.
• Completion of the branch expansion target, with 38 more branches planned for the remainder of FY27.

“We have been able to arrest cost... the likelihood of cost remaining muted and us getting more operating leverage for our business is a fairly highly likely expectation.”

“Our best ever PBT is accompanied by growth in secured assets which has seen a secular improvement year-on-year and now we stand at 73.7%.”

Jana Small Finance Bank · financial snapshot

Share price	₹391.65
Market capitalisation	₹4,144.52 Cr
Revenue (annual)	₹5,352.86 Cr
Net profit (annual)	₹326.43 Cr
Revenue (latest quarter)	₹1,514.53 Cr+4.84% vs previous quarter
Net profit (latest quarter)	₹155.23 Cr+11.02% vs previous quarter
P/E (TTM)	10.91×Sector 20.59×
Promoter holding	16.87%-0.07% QoQ
FII holding	5.1%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.