Jana Small Finance Bank Reports Q2 FY26 Results with Strong Secured Lending Growth

Jana Small Finance Bank announced its financial results for Q2 FY26, highlighting strong growth in secured lending and signs of stabilisation in its unsecured assets portfolio. The bank also crossed a key milestone in deposits, reflecting steady business momentum.

Key Highlights for Q2 FY26

• Total deposits crossed ₹30,000 crore, reaching ₹32,532 crore.
• CASA grew 14% year-to-date, while term deposits rose 11%.
• Cost of deposits decreased to 7.88% in Q2 FY26.
• Unsecured assets portfolio grew 0.3% after previous declines.
• Secured assets demonstrated strong growth across segments.
• ₹250 crore Tier 2 capital raised, improving Capital Adequacy Ratio by 1.25%.

Financial Performance and Margins

The bank reported a Profit After Tax (PAT) of ₹75 crore for Q2 FY26 and ₹177 crore for H1 FY26. Net Interest Margin (NIM) stood at 6.6% for Q2, slightly down from 6.7% in Q1.

Asset Quality and Portfolio Mix

As of September 30, 2025, the gross loan portfolio reached ₹31,655 crore. The portfolio composition was:

• Secured Assets: 72.5%
• Unsecured under guarantee programs: 13.5%
• Unsecured outside guarantee programs: 14%

The bank expanded coverage under guarantee programs, with 49% of the unsecured book now covered.

Segment-Wise Growth and Strategic Initiatives

• Affordable Housing: 34.4% YoY growth
• MSME: 27% YoY growth
• Gold Loans: 17.5% QoQ growth
• Two-Wheelers: 12.8% QoQ growth

Strategic priorities include maintaining 80% of the portfolio in secured assets, expanding guarantee coverage to 96% of unsecured loans by March 2027, and optimising costs in the microfinance business.

Management Commentary

Ajay Kanwal, MD & CEO, said: “We are pleased to see the stabilisation of our unsecured assets portfolio and strong growth in secured lending segments. Our strategic focus on secured assets and guarantee programs is yielding positive results.”

The bank revised PAT growth guidance to 0–2% for FY26 while maintaining 20% growth targets for loans and deposits. NIM is expected to improve to around 7% by year-end.

Read More: Nifty Financial Services Index Gains 0.72% on October 23.

Conclusion

Jana Small Finance Bank delivered steady Q2 FY26 results, supported by robust secured lending growth and improved capital adequacy. Strategic initiatives and parent support position the bank for sustainable growth in the coming quarters.

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