During Tuesday's trading session, shares of Jana Small Finance Bank (Jana SFB) experienced a significant surge following the announcement of impressive financial results for the quarter and fiscal year ending March 31, 2024.
The bank's net profit from ordinary activities for the March quarter doubled, reaching Rs 167 crore compared to Rs 81 crore in the corresponding period last year. Including deferred tax assets, the net profit skyrocketed fourfold to Rs 344 crore.
Notably, Jana SFB's net interest margin for the full fiscal year improved to 8%, up from 7.8% in the previous fiscal year. The bank's operating profit for the quarter also saw a substantial rise of 22% year-on-year, amounting to Rs 342 crore, propelled by a total income of Rs 1291 crore, compared to Rs 1010 crore in the same period.
For the financial year 2023-24, the bank's net interest income (NII) stood at Rs 2,127 crore, reflecting a remarkable 28.1% year-on-year growth compared to Rs 1,660 crore in the preceding fiscal year.
In response to these encouraging financial results, Jana SFB's shares surged by 20% during Tuesday's trading session, reaching their upper circuit limit of Rs 599. This surge propelled the bank's market capitalization to approximately Rs 6,250 crore, significantly higher than the previous closing price of Rs 499.20 on Monday.
Furthermore, Jana SFB demonstrated notable improvement in its asset quality, with gross non-performing assets (GNPA) decreasing to 2% as of March 31, 2024, down from 3.6% a year ago. Similarly, net non-performing assets (NNPA) also exhibited improvement, declining to 0.5% from 2.4% over the same period.
Jana SFB's shares were listed on the stock exchanges in February 2024, raising Rs 570 crore through its initial public offering (IPO) at Rs 414 per share. Since its listing, the stock has appreciated by 45% from its issue price, indicating strong investor confidence in the bank's performance and growth prospects.
