Jana Small Finance Bank third quarter results: Profit falls 91% to Rs 10 crore

Jana Small Finance Bank reported a 91% decline in third quarter net profit at Rs 10 crore compared to Rs 111 crore in the same period last year, due to higher provisioning and other operating expenses.The bank has projected fourth-quarter net profit at Rs 140-160 crore, with the help of lower credit costs.

Meanwhile, it said it is updating the application for the universal banking license and will resubmit it at an appropriate time. The Reserve Bank of India returned the application in October citing several shortcomings.”The worst is behind us. The third quarter was the bottom of all our problems,” Kanwal told ET.

The bank estimated credit costs at Rs 170-190 crore in the fourth quarter.

It has set aside Rs 277 crore as bad loan provisions for the third quarter, compared to Rs 174 crore earlier, leading to a sharp decline in net profit.

High operating expenses of Rs 633 crore against Rs 491 crore due to customer acquisition spend and stressed loan recovery offset the increase in operating profit of Rs 920 crore against Rs 770 crore. Operating profit was slightly higher at Rs 289 crore versus Rs 279 crore.

The bank’s gross non-performing asset ratio fell to 2.59% at the end of December from R2.80 a year ago.

Kanwal said the loan disbursement is back on track. Gross loan book grew 19% year-on-year to Rs 33,324 crore, with secured assets growing 27% and unsecured loans 2%.