Jana Small Finance Bank Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Jana Small Finance Bank Ltd filed with BSE on 21 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Jana Small Finance Bank reported PAT of Rs 155 crore for Q1 FY27 with net interest margin improving to 7.5%, driven by lower cost of funds and reduced slippages in the unsecured book. Gross NPA stood at 2.24%, net NPA at 0.85%, and credit cost remained flat at 0.45% versus Q4. Management reiterated full-year guidance of 19-21% gross loan growth, 23-25% deposit growth, and PAT growth of 80% plus, while addressing the holding company's rating downgrade and clarifying it has no operational linkage to the bank.
Numbers mentioned
PAT: INR155 crore (Q1 FY27)
p. 3
“So our profit for the first quarter, which is PAT, is INR155 crore.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Net Interest Margin: 7.5% (Q1 FY27)
p. 3
“I think importantly, we have seen that our NIM has backed up now to 7.5%.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Net credit cost: 0.45% (Q1 FY27)
p. 3
“Our net credit cost is flat to our quarter 4 at 0.45%.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Secured assets growth: 29% (Q1 FY27)
p. 3
“Our secured assets grew at 29%.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
CASA growth: 31% (year-on-year)
p. 3
“And CASA growth has been great, 31% year-on-year, and first quarter has been very strong.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Gross NPA: 2.24% (as of 30th June)
p. 5
“And now our gross NPA now stands at 2.24%, our net NPA 0.85% of the gross loan book and PCR rate at 62.4%.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Net NPA (unsecured): INR214 crore (as of 30th June)
p. 6
“I also want to highlight to you in the last two columns, our net NPA is at INR214 crore.”
Ajay Kanwal, page 6 of the filed PDF · View the filing
Guarantee program coverage of unsecured book: 79.8% (as of 30th June)
p. 6
“I'm happy to report that 79.8%, which is nearly 80%, of unsecured is under guarantee program.”
Ajay Kanwal, page 6 of the filed PDF · View the filing
Cost of funds: 7.4% (Q1 FY27)
p. 7
“And that brings me to the cost of funds. If you see quarter 1, 2027, we are at 7.4%.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
ROA: 1.4% (Q1 FY27)
p. 7
“I think the most important thing here is our ROA is at 1.4% and our ROE is at 13.6%”
Ajay Kanwal, page 7 of the filed PDF · View the filing
ROE: 13.6% (Q1 FY27)
p. 7
“I think the most important thing here is our ROA is at 1.4% and our ROE is at 13.6%”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Retail deposits share: 64.9% (Q1 FY27)
p. 7
“And as you can see on space, 64.9% is retail deposits.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Gold loan book: INR2,678 crore (Q1 FY27)
p. 9
“So we are sitting at about INR2,678 crore, we grew over 100% year-on-year.”
K.S. Raman, page 9 of the filed PDF · View the filing
Gold loan LTV: 64% (Q1 FY27)
p. 9
“on an average, across the portfolio, our LTV is 64%, to be precise, which is well within the regulatory limits.”
K.S. Raman, page 9 of the filed PDF · View the filing
MFI book size: INR10,240 crore (Q1 FY27)
p. 10
“Book sits at about INR10,240 crore.”
K.S. Raman, page 10 of the filed PDF · View the filing
MFI growth: 18% (year-on-year)
p. 10
“This quarter, we grew 2.8% quarter-on-quarter, and we grew 18% year-on-year compared to first quarter last year.”
K.S. Raman, page 10 of the filed PDF · View the filing
Used car business monthly disbursement: INR45-odd crore (Q1 FY27)
p. 11
“We have reached a monthly disbursement about INR45-odd crore.”
Ajay Kanwal, page 11 of the filed PDF · View the filing
Unsecured slippages: INR125 crore (Q1 FY27)
p. 8
“which is almost from INR155 crore to it has reduced to INR125 crore, in terms of slippages.”
Abhilash Sandur, page 8 of the filed PDF · View the filing
Cost-to-income ratio: 66.7% to 67% (Q1 FY27)
p. 12
“So cost-to-income ratio, we are currently at around 66.7% to 67% range”
Abhilash Sandur, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Gross loan growth — 19% to 21% · FY27
stated firmly by Ajay Kanwal
p. 7
“Finally, I just want to finish with Page number 23 and reiterate our guidance of gross loan growth of 19% to 21%, a deposit growth of 23% to 25%, and a PAT of 80% plus for the year.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Deposit growth — 23% to 25% · FY27
stated firmly by Ajay Kanwal
p. 7
“Finally, I just want to finish with Page number 23 and reiterate our guidance of gross loan growth of 19% to 21%, a deposit growth of 23% to 25%, and a PAT of 80% plus for the year.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
PAT growth — 80% plus · FY27
stated firmly by Ajay Kanwal
p. 7
“Finally, I just want to finish with Page number 23 and reiterate our guidance of gross loan growth of 19% to 21%, a deposit growth of 23% to 25%, and a PAT of 80% plus for the year.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Cost of funds — 7.4%, plus or minus 5 bps · FY27
stated conditionally by Ajay Kanwal
p. 7
“I do expect that 7.4% will remain nearly 7.4%, plus or minus 5 bps at best, during this year.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Net interest margin — around 7.5%
stated as an aspiration by Ajay Kanwal
p. 7
“One is net interest margin, so it is at 7.5%, which moved up well. We expect it to be steady around there.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Credit cost — 0.45% · remaining quarters of FY27
stated conditionally by Ajay Kanwal
p. 8
“So one can expect that the 0.45% cost will at the minimum be maintained at the same levels in all the remaining quarters.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
Cost of funds — 7.3% to 7.4% · FY27
stated conditionally by Abhilash Sandur
p. 12
“So all those factors will contribute to either it will be in the range of 7.3% to 7.4%, in that range, the cost of funds will be at.”
Abhilash Sandur, page 12 of the filed PDF · View the filing
Cost-to-income ratio — 63% to 65% · FY27
stated conditionally by Abhilash Sandur
p. 12
“However, it will reduce. It will go around 63% to 65% range during the year.”
Abhilash Sandur, page 12 of the filed PDF · View the filing
CASA ratio — around 20% · FY27
stated as an aspiration by Abhilash Sandur
p. 13
“We want to have a CASA mix of close to around 20%, CASA ratio, for the year.”
Abhilash Sandur, page 13 of the filed PDF · View the filing
MFI portfolio growth — 10% to 12% · FY27
stated as an aspiration by K.S. Raman
p. 10
“For FY27, we are targeting the portfolio not to be aggressively growing, to about 10% to 12%.”
K.S. Raman, page 10 of the filed PDF · View the filing
Micro LAP growth — second quarter onwards
stated firmly by Ajay Kanwal
p. 5
“So that's something that we are working on, and we will bring it to the positive growth rate second quarter onwards.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Credit Line on UPI launch — this quarter
stated firmly by Ajay Kanwal
p. 5
“We should go public with the Credit Line on UPI this quarter.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Loans against shares launch — second quarter
stated firmly by Ajay Kanwal
p. 11
“That product will also go live in second quarter.”
Ajay Kanwal, page 11 of the filed PDF · View the filing
FCNR(B) offering — August or September
stated conditionally by Ajay Kanwal
p. 5
“But if we are able to kind of put everything together and be comfortable with it, we may do a small one in August or September.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
CGMFU claim — INR65 crore · Q3
stated firmly by Abhilash Sandur
p. 10
“So in Slide number 10, if you go to Slide number 10, we have mentioned that we will claim INR65 crore in Q3 itself, okay?”
Abhilash Sandur, page 10 of the filed PDF · View the filing
Branch expansion — 78 branches · this year
stated firmly by Ajay Kanwal
p. 5
“We are planning to open 78 branches.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Gold loan GNPA — around 0.5%
stated conditionally by K.S. Raman
p. 9
“GNPA will remain around 0.5% and will be fully covered by the collateral realization.”
K.S. Raman, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Unsecured slippages fell about 20% quarter-on-quarter and are expected to continue trending down.
Answered by Abhilash Sandur
Asked by Jai Chauhan: What is the slippages trend in the unsecured portfolio and is the improvement sustainable?
p. 8
“So in terms of unsecured slippages, quarter-on-quarter, it has reduced by almost 20%.”
Abhilash Sandur, page 8 of the filed PDF · View the filing
Credit cost of 0.45% is expected to be maintained at minimum in the remaining quarters.
Answered by Ajay Kanwal
Asked by Jai Chauhan: What is the outlook on credit cost for FY27?
p. 8
“So one can expect that the 0.45% cost will at the minimum be maintained at the same levels in all the remaining quarters.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
Management said no stress observed, with collections tracking normally through mid-July.
Answered by Ajay Kanwal
Asked by Jai Chauhan: Is there emerging stress in MSME, Micro LAP, or affordable housing?
p. 9
“We haven't seen any Iran impact. We haven't seen any El Nino impact.”
Ajay Kanwal, page 9 of the filed PDF · View the filing
Management does not expect material impact due to conservative LTV and monitoring mechanisms.
Answered by K.S. Raman
Asked by Pranav: How will falling gold prices affect the gold loan portfolio and asset quality?
p. 9
“Therefore, we don't expect any material impact on asset quality.”
K.S. Raman, page 9 of the filed PDF · View the filing
MFI portfolio is targeted to grow 10-12% for the year, a moderate pace.
Answered by K.S. Raman
Asked by Pranav: What growth is targeted for the MFI segment in FY27?
p. 10
“For FY27, we are targeting the portfolio not to be aggressively growing, to about 10% to 12%.”
K.S. Raman, page 10 of the filed PDF · View the filing
CASA grew strongly aided by advertising and RCB's championship win.
Answered by Ajay Kanwal
Asked by Harshit: How did the RCB IPL sponsorship affect CASA growth?
p. 10
“So our CASA grew very strongly in the first quarter, 7% quarter-on-quarter.”
Ajay Kanwal, page 10 of the filed PDF · View the filing
Of the Rs 214 crore net NPA, Rs 196 crore is covered, leaving only Rs 18 crore uncovered; Rs 65 crore will be claimed in Q3.
Answered by Abhilash Sandur
Asked by Harshit: Can you explain the guarantee cover details on Slide 10 and expected CGMFU recoveries?
p. 11
“So which leads to uncovered portion of only INR18 crore, even though there will be timing difference of the claim of the INR196 crore, of which only INR65 crore claimed now subsequently will claim balance.”
Abhilash Sandur, page 11 of the filed PDF · View the filing
Bulk deposits declined while CASA and retail term deposits grew, keeping overall deposits flat.
Answered by Abhilash Sandur
Asked by Suraj: What caused flat deposit growth in Q1 FY27?
p. 12
“So deposits, while it remained flat in terms of growth, Suraj, it is mainly because, like we explained earlier, there was a reduction in the bulk deposits.”
Abhilash Sandur, page 12 of the filed PDF · View the filing
Cost of funds is expected to stabilize in the 7.3-7.4% range going forward.
Answered by Abhilash Sandur
Asked by Suraj: Will the decline in cost of funds continue?
p. 12
“It will remain around 7.3% to 7.4% range.”
Abhilash Sandur, page 12 of the filed PDF · View the filing
No material impact seen; the bank is monitoring closely and believes it is well positioned.
Answered by K.S. Raman
Asked by Gulshan Singh: Is there any impact from the Iran war or El Nino on the portfolio?
p. 13
“At this stage, we're not really seeing any material impact on our portfolio, we are obviously closely monitoring it, neither due to the geopolitical situation, nor even due to El Nino weather-related developments.”
K.S. Raman, page 13 of the filed PDF · View the filing
Management declined to comment on market speculation.
Answered by Ajay Kanwal
Asked by Gulshan Singh: Are there merger talks involving the bank?
p. 13
“Listen, no comment on market speculation.”
Ajay Kanwal, page 13 of the filed PDF · View the filing
Management said there is no direct financial or operational linkage between the bank and the promoter entity.
Answered by Abhilash Sandur
Asked by Gulshan Singh: What is the impact of the promoter company's liquidity issues on the bank?
p. 14
“So there's no direct financial or operational impact on the bank.”
Abhilash Sandur, page 14 of the filed PDF · View the filing
Risks flagged
Slight increase in overall SMA book noted during the quarter
p. 3
“Slight increase in overall SMA, which we have pointed out here, more to do with the way the first quarter works than anything challenging that we can see in our books.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Micro LAP growth declined in the quarter due to sourcing model shift
p. 5
“The one business which wasn't designed to not grow in the first quarter, which is Micro LAP.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Harder deposit pricing environment in April and May
p. 7
“I think April and May were a bit difficult months from a liquidity perspective. Prices went up on the deposit side, which we try to kind of hold against.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Government CASA deposits lost in Q4 have not yet returned
p. 13
“No. The government deposits, which were CASA-led, haven't come back.”
Ajay Kanwal, page 13 of the filed PDF · View the filing
Potential geopolitical and weather-related risks to portfolio being monitored
p. 13
“If the geopolitical situation continues or if the weather conditions deteriorate, we believe that we are well positioned to respond to calibrated underwriting and tighter portfolio monitoring, plus enhanced collection efforts.”
K.S. Raman, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.