Jana Small Finance Bank's Q2 FY25 financials show mixed results, investors advised to hold

Jana Small Finance Bank, a midcap private bank, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the bank is ‘Hold’.

According to the financials, Jana Small Finance Bank has seen a flat performance in the quarter, with a score of -1 compared to 16 in the previous quarter. However, there are some positive aspects to the bank’s performance. The interest earned on a half-yearly basis has grown by 25.17% year on year, indicating a positive sales trend in the near term.

On the other hand, there are some areas that need improvement for Jana Small Finance Bank. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -297.0% compared to the average PBT of the previous four quarters. This shows a very negative trend in the near term. Similarly, the Profit After Tax (PAT) for the quarter has also fallen by -48.4% compared to the average PAT of the previous four quarters. The Gross NPA for the quarter is at its highest in the last five quarters, indicating an increase in the proportion of stressed loans given by the bank.

Moreover, the Non Operating Income for the quarter is 198.64% of the Profit Before Tax (PBT), which suggests that the bank’s income from non-business activities is high and may not be a sustainable business model. The Earnings per Share (EPS) for the quarter is also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. Additionally, the Net NPA for the quarter is also at its highest in the last five quarters, further highlighting the increasing proportion of stressed loans given by the bank.

Overall, Jana Small Finance Bank’s financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors are advised to hold their stock and closely monitor the bank’s performance in the coming quarters.