Jana Small Finance Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Jana Small Finance Bank Ltd filed with BSE on 06 May 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 Q4 FY26 PAT of Rs 140 crore, meeting the guidance range it had given after Q3 results, alongside a net credit cost of 0.47% and SMA at 3.66%. Management said gross advances grew 23% year-on-year with secured assets up 28% and deposits up 23% to Rs 35,784 crore, while cost of deposits fell to 7.46%. For FY27, management guided to gross loan portfolio growth of 19% to 21%, deposit growth of 23% to 25%, and PAT growth of 80% plus.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
PAT: INR140 crores (Q4 FY26)
p. 3
“We said we'll do PAT at INR140 crores to INR160 crores. We have come at INR140 crores.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Net credit cost: INR156 crores (Q4 FY26)
p. 3
“Our net credit cost is at INR156 crores.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
SMA: 3.66% (March 2026)
p. 3
“And SMA, we said we'll come below 4%, and we are at 3.66%.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Slippages: INR334 crores (Q4 FY26)
p. 3
“So the slippages, roughly about INR334 crores are the lowest since the first quarter of 2020, like April to June quarter '25.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Net credit cost: 0.47% (Q4 FY26)
p. 3
“Our net credit cost, which was 0.79% for the quarter is down to 0.47%.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Assets growth: 23% year-on-year (FY26)
p. 3
“Assets have grown 23% year-on-year.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Secured assets growth: 28% (FY26)
p. 3
“Secured assets have grown 28%.”
Ajay Kanwal, page 3 of the filed PDF · View the filing
Deposits: INR 35,784 crores (FY26)
p. 4
“First, like I mentioned, deposits now at INR 35,784 crores, 23% growth in FY26.”
Ajay Kanwal, page 4 of the filed PDF · View the filing
Cost of funds: 7.46% (Q4 FY26)
p. 4
“Cost of funds down to 7.46%.”
Ajay Kanwal, page 4 of the filed PDF · View the filing
Secured book mix: 72.6% (Q4 FY26)
p. 4
“Our secured book now stands at 72.6%.”
Ajay Kanwal, page 4 of the filed PDF · View the filing
Secured disbursements: INR 5,372 crores (Q4 FY26)
p. 4
“We were the highest ever in our history of disbursements in quarter 4, INR 5,372 crores in secured disbursements.”
Ajay Kanwal, page 4 of the filed PDF · View the filing
Unsecured disbursements: INR 2,522 crores (Q4 FY26)
p. 4
“We did the highest ever disbursement in quarter 4, highest ever means highest ever in 8 years of INR 2,522 crores, which is a 24% growth quarter-on-quarter”
Ajay Kanwal, page 4 of the filed PDF · View the filing
Guarantee program coverage: 77% (Q4 FY26)
p. 4
“Our strategy of ensuring that we put the book under credit guarantee program hasn't changed, which is why the total guarantee program is at 77%.”
Ajay Kanwal, page 4 of the filed PDF · View the filing
Gross NPA: 2.33% (Q4 FY26)
p. 5
“So net credit cost is INR156 crores at 0.47% at gross NPA at 2.33%, net NPA at 0.87%.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Gold loan book: INR 2,358 crores (Q4 FY26)
p. 6
“Gold loans just like the industry, our gold loan is doing extremely well, and now the book stands at INR 2,358 crores, 140% growth from last year.”
Ajay Kanwal, page 6 of the filed PDF · View the filing
Total secured loans: INR 26,332 crores (Q4 FY26)
p. 6
“Our total secured loan stands at INR 26,332 crores.”
Ajay Kanwal, page 6 of the filed PDF · View the filing
Unsecured advances: INR 9,674 crores (Q4 FY26)
p. 6
“Our unsecured book really has INR 9,674 crores as unsecured advances.”
Ajay Kanwal, page 6 of the filed PDF · View the filing
Gross advances: INR 36,289 crores (Q4 FY26)
p. 8
“I think the important thing to see other than the -- so our advances is at INR 36,289 crores.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
ROA: 1.3% (Q4 FY26)
p. 8
“Our quarter 4 ROA is at 1.3%.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
ROE: 13% (Q4 FY26)
p. 8
“Our ROE is at 13% and it does show that this is more like a normal position of the bank and our book value is at INR424.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
CASA growth: 22.6% (FY26)
p. 11
“So I think we should expect around 27% to 30% growth this year in CASA.”
Ajay Kanwal, page 11 of the filed PDF · View the filing
Used car disbursal run rate: INR25 crores a month (Current)
p. 13
“We are now doing a strong run rate of INR25 crores disbursal a month.”
Ajay Kanwal, page 13 of the filed PDF · View the filing
DA transaction: INR284 crores (As of March end)
p. 13
“So we tend to be short on Agri assets and which is why we do some DA, which is only about INR284 crores as of March end to meet the Agri criteria, it is so nothing else.”
Ajay Kanwal, page 13 of the filed PDF · View the filing
Cost income ratio: 57% (March 2024)
p. 15
“I just want to tell you and everybody else on this call that March '24, our cost income was 57%.”
Ajay Kanwal, page 15 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 portfolio growth — 19% to 21% · FY27
stated firmly by Ajay Kanwal
p. 8
“So I really wanted to point out Page Number 22 and not 23 is the guidance for next year, which is a gross loan portfolio growth of 19% to 21%, deposit growth of 23% to 25% and PAT year-on-year should grow at 80% plus.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
Deposit growth — 23% to 25% · FY27
stated firmly by Ajay Kanwal
p. 8
“So I really wanted to point out Page Number 22 and not 23 is the guidance for next year, which is a gross loan portfolio growth of 19% to 21%, deposit growth of 23% to 25% and PAT year-on-year should grow at 80% plus.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
PAT growth — 80% plus · FY27
stated firmly by Ajay Kanwal
p. 8
“So I really wanted to point out Page Number 22 and not 23 is the guidance for next year, which is a gross loan portfolio growth of 19% to 21%, deposit growth of 23% to 25% and PAT year-on-year should grow at 80% plus.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
Net interest margin — Q1 and Q2 FY27
stated conditionally by Ajay Kanwal
p. 8
“Now if you extrapolate that to quarter 1 of this year and quarter 2, we do expect unsecured to keep growing. So yes, that should help NIM grow.”
Ajay Kanwal, page 8 of the filed PDF · View the filing
Unsecured slippages — FY27
stated conditionally by K.S. Raman
p. 9
“Also, the SMA book, if you look at the first line of Ajay on the decline in the SMA book, so the SMA book has also reduced by about 24% and therefore, we do expect the slippages to trend lower during the FY27.”
K.S. Raman, page 9 of the filed PDF · View the filing
Net credit cost — around 0.47% · FY27
stated conditionally by Ajay Kanwal
p. 10
“I would probably urge you to view that we'll be in the same range or slightly better at best.”
Ajay Kanwal, page 10 of the filed PDF · View the filing
Secured book growth (MFI segment) — 25% to 30% · FY27
stated firmly by K.S. Raman
p. 10
“Strategically, our focus continues to remain on growing secured faster. The secured book will grow by 25% to 30% and unsecured book is expected to grow by about 10% to 12%.”
K.S. Raman, page 10 of the filed PDF · View the filing
CASA growth — 27% to 30% · FY27
stated as an aspiration by Ajay Kanwal
p. 11
“So I think we should expect around 27% to 30% growth this year in CASA.”
Ajay Kanwal, page 11 of the filed PDF · View the filing
CGMFU recovery — INR65 crores · Q3 FY27
stated conditionally by Ajay Kanwal
p. 13
“Our rough and ready estimate is we should expect about INR65 crores under CGMFU in quarter 3 this year.”
Ajay Kanwal, page 13 of the filed PDF · View the filing
Used car business expansion — 35 cities · By September
stated firmly by Ajay Kanwal
p. 13
“We are operating in 15 cities. We expect to take that up to 35 cities by September.”
Ajay Kanwal, page 13 of the filed PDF · View the filing
Cost-to-income ratio — below 60% · FY27
stated as an aspiration by Ajay Kanwal
p. 15
“We will make every attempt to do it.”
Ajay Kanwal, page 15 of the filed PDF · View the filing
Branch network — 860 branches · FY27
stated firmly by Ajay Kanwal
p. 5
“We finished in 822. So expect that to be at 860 branches next year.”
Ajay Kanwal, page 5 of the filed PDF · View the filing
Micro LAP growth — 12% to 15% · FY27
stated as an aspiration by Ajay Kanwal
p. 11
“I do think Micro LAP, which just did about 9.4%, will do better next year. So it will probably be in the 12% to 15% range.”
Ajay Kanwal, page 11 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.
K.S. Raman said unsecured slippages reduced 35% quarter-on-quarter and 50% year-on-year, and expects slippages to trend lower in FY27.
Answered by K.S. Raman
Asked by Varun Shivram: Will the declining slippages trend continue in MFI and unsecured segments?
p. 9
“So I mean just to give you a little bit of trends, so unsecured slippages were around INR150 crores in the fourth quarter. It reduced by about 35% in the quarter.”
K.S. Raman, page 9 of the filed PDF · View the filing
Management said micro LAP saw conscious tightening after weak growth last year, and they remain watchful on MSME due to possible spillover from the Middle East war but see no clear impact yet.
Answered by Ajay Kanwal
Asked by Varun Shivram: Are there stress signals in SME, micro LAP or housing segments?
p. 9
“We're very watchful on MSME on what happens with any spill over effects of the Middle East war. Nothing is visible to us, but it's unlikely nothing will impact us.”
Ajay Kanwal, page 9 of the filed PDF · View the filing
Management said yields are competitive for their ticket size and expects yield improvement as smaller-ticket cross-sell from microfinance customers increases.
Answered by Ajay Kanwal
Asked by Chaitya: Is the gold loan yield competitive with pure-play gold NBFCs?
p. 10
“I do expect that this year, our yields will improve in gold as more smaller ticket customers essentially from the microfinance cross-sell will make their appearance.”
Ajay Kanwal, page 10 of the filed PDF · View the filing
Management said they will resubmit the application now that audited results are out, and confirmed the guidance for next year does not factor in any benefit from universal bank conversion.
Answered by Ajay Kanwal
Asked by Chaitya: When will Jana reapply for a universal banking license and will it affect growth guidance?
p. 11
“So when we are giving you the guidance for next year, which is 80% growth in PAT over this year, it doesn't have any impact of universal buying in the numbers.”
Ajay Kanwal, page 11 of the filed PDF · View the filing
Management cited an example of a petrol pump customer receiving fewer fuel deliveries but said no broader impact has been observed yet and they are watching closely.
Answered by Ajay Kanwal
Asked by Viral Mehta: Do you see any signs of Iran war impact on the loan portfolio?
p. 12
“And last thing, you would expect a petrol pump owner not be able to pay an EMI. And he did say that the number of tankers he's getting, which used to be 10 in the past, is down to 2.”
Ajay Kanwal, page 12 of the filed PDF · View the filing
Management said there was a roughly 15% lift in CASA and retail TD growth in April but cautioned it is too early to call it sustained.
Answered by Ajay Kanwal
Asked by Rohit Rokde: What was the outcome of the RCB branding tie-up on deposit growth in April?
p. 12
“but it did see a lift of about 15% in the month of April itself.”
Ajay Kanwal, page 12 of the filed PDF · View the filing
K.S. Raman confirmed no claims were made in FY26 and claims will begin from Q3 FY27.
Answered by K.S. Raman
Asked by Rohit Rokde: Have any claims been made to CGMFU yet and what recoveries are expected?
p. 12
“No, we have not made any claim from CGMFU in FY26. The claim will start from Q3 of this financial year.”
K.S. Raman, page 12 of the filed PDF · View the filing
K.S. Raman said recoveries have shown similar trends historically and he believes the trend can continue.
Answered by K.S. Raman
Asked by Suraj Shinde: Is the recovery from bad debt of around INR120 crore sustainable?
p. 14
“So I mean, back to your question, can we look at a similar trend going forward? I do believe so.”
K.S. Raman, page 14 of the filed PDF · View the filing
Management said there is no visible liquidity tightness, cost of deposits will fall further in Q1 due to March maturities repricing, but flat interest rates are expected beyond that.
Answered by Ajay Kanwal
Asked by Suraj Shinde: What is the incremental cost of deposits and outlook given liquidity tightness?
p. 14
“So Q1 will probably be our lowest point of cost of deposit? Yes.”
Ajay Kanwal, page 14 of the filed PDF · View the filing
Abhilash Sandur said the borrowings from NABARD, SIDBI and NHB carry a blended cost of about 6.9% to 7% and are used to improve the bank's ALM profile with long tenure.
Answered by Abhilash Sandur
Asked by Suraj Shinde: What is the cost and purpose of the INR1,500 crore borrowing raised from financial institutions in Q4?
p. 14
“And the blended cost of these borrowings is around 7%, 6.9% to 7%. That's the range at which we borrow.”
Abhilash Sandur, page 14 of the filed PDF · View the filing
Management said they will attempt it, citing tapering cost growth and stronger revenue as reasons for optimism, while recalling the bank's historical low of 57%.
Answered by Ajay Kanwal
Asked by Suraj Shinde: Can cost-to-income ratio come down below 60% this year?
p. 15
“We are also seeing an unsecured growth, which was a challenge last year. So if you take a combination of those 2, and of course, lower cost of funds this year versus average of last year, we should see better revenue, lower cost growth and hence, a better cost income.”
Ajay Kanwal, page 15 of the filed PDF · View the filing
Risks flagged
Government-related CASA withdrawals reduced deposits in Q4
p. 7
“We did lose CASA in quarter 4 at 4.8% loss largely driven through some of the government CASA we had where while we didn't have any challenges, we were certainly -- we did see some withdrawals as part of an industry group.”
Ajay Kanwal, page 7 of the filed PDF · View the filing
Watchfulness on MSME due to potential Middle East war spillover effects
p. 9
“We're very watchful on MSME on what happens with any spill over effects of the Middle East war.”
Ajay Kanwal, page 9 of the filed PDF · View the filing
Weak growth in micro LAP segment leading to tightening
p. 9
“So micro LAP, Varun, last year grew year-on-year only 9.4%. It was the weakest growth amongst all our secured assets.”
Ajay Kanwal, page 9 of the filed PDF · View the filing
Sporadic signs of stress from geopolitical conflict affecting some customers, such as reduced fuel supply for a petrol pump customer
p. 12
“And he did say that the number of tankers he's getting, which used to be 10 in the past, is down to 2.”
Ajay Kanwal, page 12 of the filed PDF · View the filing
Elevated cost growth in FY26 from investments in disbursement, collections and used car growth
p. 4
“So yes, cost is higher by INR 77 crores, but we will see the benefit of interest income in this year itself.”
Ajay Kanwal, page 4 of the filed PDF · View the filing
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