Jana Small Finance Bank [NSE: JSFB], a leading player in India’s banking sector, reported its Q1 FY26 results on Tuesday, 22nd July 2025. The results showed an overall growth in total income but a significant decline in profitability. Investors have been closely watching the Jana Small Finance Bank share price as the bank navigates the challenges in the microfinance sector, making it a notable entity in the banking sector stocks.
For Q1 FY26, Jana Small Finance Bank reported a total income of ₹1516.2 crore, a rise of 11.8% from ₹1356.1 crore in Q1 FY25. However, its net profit saw a decline of 40.3%, dropping to ₹101.9 crore from ₹170.6 crore in the same period last year.
Key Financial Results for Jana Small Finance Bank Q1 FY26
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Growth (%) | QoQ Growth (%) |
| Total Income | 1516.2 | 1433.2 | 1356.1 | 11.8% | 5.8% |
| Net Profit/Loss | 101.9 | 123.5 | 170.6 | -40.3% | -17.5% |
| Basic EPS (₹) | 9.69 | 11.76 | 16.31 | -40.7% | -17.6% |
| Diluted EPS (₹) | 9.65 | 11.71 | 16.14 | -40.3% | -17.6% |
Important Updates from Jana Small Finance Bank’s Latest Financial Results
Net Interest Income (NII) Decline
Jana Small Finance Bank reported a net interest income (NII) of ₹610 crore for Q1 FY26, which is 2.5% lower than the ₹595 crore it reported in the same period last year. This decline in NII reflects the pressures on the bank’s core lending operations and net interest margins.
Decline in Profitability
Jana Small Finance Bank faced a significant challenge in Q1 FY26, as its net profit declined by 40.3% year-on-year, coming down to ₹101.9 crore from ₹170.6 crore in Q1 FY25. This drop was primarily driven by the contraction in Net Interest Margins (NIMs), which decreased by 50 basis points to 6.9% in Q1 FY26 from 7.4% in the previous quarter.
Strong Growth in Total Income
Despite the decline in profitability, Jana Small Finance Bank showed a healthy rise in its total income, which increased by 11.8% to ₹1516.2 crore, compared to ₹1356.1 crore in Q1 FY25. This growth reflects the bank’s resilience in driving higher revenue despite challenges in profit margins.
Asset Quality Concerns
The bank’s Gross Non-Performing Assets (GNPA) ratio increased to 2.91% in Q1 FY26, up from 2.71% in Q4 FY25. Net NPA remained unchanged at 0.94%, which is a key concern for investors. The rise in GNPAs has been attributed to increased stress in the microfinance segment. The bank has highlighted that improving asset quality will be a priority moving forward.
Growth in Advances
Jana Small Finance Bank reported a 14.9% increase in its advances, which grew to ₹27,825 crore from ₹24,207 crore in the same period last year. This rise in advances indicates the bank’s continued focus on expanding its lending business, particularly in the retail and MSME sectors.
Other Income Surge
The bank’s other income showed a strong growth of 40.7%, rising to ₹266 crore in Q1 FY26 from ₹189 crore in Q1 FY25. This increase is a positive development, indicating that Jana Small Finance Bank is diversifying its revenue streams and reducing reliance on traditional interest income.
Cost of Funds and Liquidity
Jana Small Finance Bank’s cost of funds remained unchanged at 8%, signalling stability in its funding costs. However, its yield on advances contracted by 10 basis points sequentially to 16.5% in Q1 FY26 from 16.6% in the previous quarter, reflecting slight pressure on lending margins.
Stock Market Reaction
Following the release of its Q1 results, shares of Jana Small Finance Bank declined by 7% on the stock market, primarily due to the profit decline and concerns over asset quality. This drop in share price reflects investor concerns about the bank’s profitability and asset quality in the near term.
Looking Forward
Despite the challenges faced in Q1 FY26, Jana Small Finance Bank remains a key player in India’s banking sector. The bank’s management is focused on improving asset quality, driving advanced growth, and maintaining its liquidity position. With the continuing pressures on margins and rising NPAs, investors will need to monitor the bank’s efforts to stabilise its asset quality and improve profitability in the coming quarters.
To stay updated with daily financial results, market insights, and developments, make sure to follow Torus Digital!
