Jana Small Finance Bank Limited has released its investor presentation for the quarter and half-year ended December 31, 2025. The bank reported an improvement in Net Interest Margins (NIM) by a modest 10 basis points, with this trend expected to continue. Deposit book saw a significant 30% year-on-year growth, accompanied by a reduction in deposit costs. The bank is in the process of updating its Universal Bank Application and plans to resubmit it to the RBI at an appropriate time, following the return of its previous application. The presentation also detailed a downward trend in slippages, with a 25.8% drop in Q3 FY26, and an estimated ~170-190 crore in Net Credit Cost for Q4 FY26. Significant improvements were observed in the SMA book, particularly the unsecured SMA book which reduced by 104 basis points quarter-on-quarter to 4.2%. The bank is strategically increasing the coverage of its unsecured book under a guarantee program, aiming for approximately 85% coverage by March 2027. This initiative is expected to reduce future collection uncertainty and improve Return on Assets (RoA) by 50-70 basis points once claim recoveries commence. Financially, the bank reported total deposits of ₹33,733 crore, with a year-to-date growth of 16%. The cost of funds reduced to 7.7% for Q3 from 7.9% in Q2 and is expected to further decrease to approximately 7.5% in Q4. Advances grew by 19% year-on-year and 5% quarter-on-quarter to ₹33,324 crore, with a secured book now at 72.8%. The bank is on track to achieve an advances growth of approximately 20% for the year.
