Jana Small Finance Bank Ltd. shares rose nearly 4% in early trade on Thursday after the lender reported higher profit and net interest income for the June quarter, supported by improved asset quality and an expansion in net interest margin.
The stock traded at Rs 505.45 on the NSE at around 10:10 a.m., up 3.8% from its previous close of Rs 488.90. The gain came even as the broader market remained subdued, with the Nifty 50 rising 0.15%.
The quarterly performance strengthened investor sentiment as the bank reported growth in its core lending business, higher margins and sequential improvement in both gross and net non-performing assets. Management also outlined growth targets for FY27, signalling confidence in business expansion and profitability.
Profit, NII Rise; Asset Quality Improves
Net profit for the quarter ended June 2026 increased 52.3% year on year to Rs 155 crore from Rs 102 crore a year earlier.
Net interest income, which reflects income from the bank's lending operations, rose 33% year on year to Rs 782 crore.
Asset quality improved during the quarter. Gross non-performing assets declined to 2.24% from 2.33% in the March quarter, while net non-performing assets eased to 0.85% from 0.87% sequentially.
Net interest margin expanded to 7.5% from 7.2% in the previous quarter.
Provisions and contingencies fell to Rs 178 crore from Rs 187 crore in the corresponding quarter last year, supporting profit growth.
Management Sets FY27 Growth Targets
In its investor presentation dated July 15, 2026, the bank said it expects gross loan portfolio growth of about 19% to 21% and deposit growth of 23% to 25% in FY27.
Management also said it expects profit after tax to grow by more than 80%, reflecting its outlook for business growth, profitability and balance sheet expansion.
Stock Gains in 2026
The stock has gained more than 19.6% since the start of 2026. Over the past week, including Thursday's move, it has advanced more than 10.8%.
During the past 52 weeks, the stock has traded between Rs 330 and Rs 521.05.
Based on the previous session's close, Jana Small Finance Bank had a market capitalisation of Rs 5,314.46 crore and traded at a price-to-earnings multiple of 13.56 times.
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