JANA SMALL FINANCE BANK LTD. 2023-24 Annual Report Analysis

Wed, 29 May

JANA SMALL FINANCE BANK LTD. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the bank during the year 2023-24.

JANA SMALL FINANCE BANK LTD. Income Statement Analysis

• Interest income during the year rose 30.5% on a year-on-year (YoY) basis.
• Interest expenses were up by 33.3% YoY during the same period.
• Operating expenses increased by 24.9% YoY during the year.
• The bank's net interest income (NII) increased by 28.1% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 7.1% in FY24 as against 7.2% in FY23.
• Other income increased by 7.4% YoY during the year.
• Net profit for the year increased by 161.6% YoY.
• Net profit margins during the year increased to 16.7% in FY24 from 8.3% in FY23.

JANA SMALL FINANCE BANK LTD. Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	30,750	40,130	30.5%
Other Income	Rs m	6,249	6,710	7.4%
Interest Expense	Rs m	14,150	18,859	33.3%
Net Interest Income	Rs m	16,600	21,271	28.1%
Operating Expense	Rs m	12,845	16,048	24.9%
Pre-provision Operating Profit	Rs m	10,004	11,933	19.3%
Provisions & Contingencies	Rs m	7,444	5,238	-29.6%
Profit before tax	Rs m	2,560	5,144	100.9%
Tax	Rs m	0	-1,552	0.0%
Profit after tax	Rs m	2,560	6,695	161.6%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	7.2	7.1
Net profit margin	%	8.3	16.7

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JANA SMALL FINANCE BANK LTD. Balance Sheet Analysis

• The bank's deposits during FY24 stood at Rs 225.7 bn as compared to Rs 163.3 bn in FY23, thereby witnessing an increase of 38.2%.
• Advances for the year stood at Rs 231.1 bn as compared to Rs 177.6 bn during FY23, a rise of 30.1%.
• Cost of deposits for JANA SMALL FINANCE BANK LTD. rose 5.3% and stood at 6.5%, while yield on advances rose to 15.6%.
• The lender's investments rose to Rs 67.4 bn during the year from Rs 52.2 bn in FY23.
• Borrowing stood at Rs 52.1 bn, a fall of 17.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 327.1 bn as against Rs 256.4 bn during FY23, thereby witnessing a rise of 27.6%.

JANA SMALL FINANCE BANK LTD. Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,771	35,665	100.7%
Advances	Rs m	177,596	231,113	30.1%
Deposits	Rs m	163,340	225,712	38.2%
Yield on advances	%	15.3	15.6
Cost of Deposits	%	6.1	6.5
Investments	Rs m	52,212	67,377	29.0%
Borrowings	Rs m	62,775	52,115	-17.0%
Total Assets	Rs m	256,437	327,098	27.6%

Current Valuations for JANA SMALL FINANCE BANK LTD.

• The trailing twelve-month earnings per share (EPS) of the bank stands at Rs 64.0, an improvement from the EPS of Rs 46.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 583.0, stands at 6.6 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.7 times, while the price to income ratio stands at 1.1 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	559.3	383.7
Earnings per share (Unadj.)	Rs	46.6	64.0
Diluted earnings per share	Rs	24.5	64.0
Avg P/E ratio	Rs	0.0	6.6
Avg P/ABV ratio	Rs	0.0	1.7
Avg Market Cap	Rs	0	44,284
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for JANA SMALL FINANCE BANK LTD.

• Efficiency Ratios

  Credit/Deposit Ratio: The bank's credit/deposit ratio deteriorated and stood at 102.4x during FY24, from 108.7x during FY23. The credit/deposit ratio tells us how much money a bank has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The bank's debt to equity ratio decreased and stood at 7.79x during FY24, from 12.72x during FY23. The debt to equity ratio of a bank tells us how much debt a bank uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): JANA SMALL FINANCE BANK LTD.'s capital adequacy ratio (CAR) was at 0.0% as on 31 March 2024 as compared to 2.6% a year ago. This ratio helps measure the financial strength of the bank or any finance company to meet their obligations using their assets and capital.

  A bank that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the bank's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a bank sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the bank is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that banks hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the bank improved and stood at 18.8% during FY24, from 14.4% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the bank improved and stood at 2.05% during FY24, from 1.00% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the bank improved and stood at 11.18% during FY24, from 9.70% during FY23. The ROCE measures the ability of a bank to generate profits from its total capital (shareholder capital plus debt capital) employed in the bank.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a bank's gross NPAs to gross advances. JANA SMALL FINANCE BANK LTD.'s gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 3.9% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a bank's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the bank has made provisions.

  The net NPA ratio of JANA SMALL FINANCE BANK LTD. was 0.0% in financial year 2024. This compared with 2.6% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	108.7	102.4
Debt to Equity Ratio	x	12.7	7.8
Loans / Deposits	x	0.4	0.2
Capital Adequacy Ratio	%	2.6	0.0
Return on Equity	%	14.4	18.8
Return on Assets	%	1.0	2.0
Return on Capital Employed	%	9.7	11.2
% of Gross NPAs	%	3.9	0.0
% of Net NPAs	%	2.6	0.0
Yield on Advances	x	15.3	15.6
Yield on Investments	x	6.3	5.5

To see how JANA SMALL FINANCE BANK LTD. has performed over the last 5 years, please visit here.

JANA SMALL FINANCE BANK LTD. Share Price Performance

Over the last one year, JANA SMALL FINANCE BANK LTD. share price has moved up from Rs 0.0 to Rs 583.0, registering a gain of Rs 583.0 or around 0.0%.

Meanwhile, the S&P BSE BANKEX is trading at 55,408.2 (down 1.2%). Over the last one year it has moved up from 50,262.7 to 55,408.2, registering a gain of 5,145.5 points (up 10.2%).

Overall, the S&P BSE SENSEX is up 18.7% over the year.

(To know more, you can check out historical annual results for JANA SMALL FINANCE BANK LTD. here and quarterly results for JANA SMALL FINANCE BANK LTD. here)