Jana Small Finance Bank Share Price Surged Over 18% after Q3FY25 Results. Here’s Why

Market Movement

Jana Small Finance Bank's share price surged over 18% on January 22 following the announcement of its Q3FY25 financial results. The stock climbed to a high of ₹434.50 on the BSE, demonstrating strong investor interest despite a year-on-year (YoY) decline in net profit.

Q3FY25 Financial Performance

Jana Small Finance Bank reported a standalone net profit of ₹110.6 crore, down 17.91% YoY from ₹134.6 crore in Q3FY24. Sequentially, net profit increased by 14.60% from ₹96 crore in the September 2024 quarter.

Net interest income (NII) rose by 8% YoY to ₹593 crore, compared to ₹549 crore in Q3FY24. However, pre-provisioning operating profit declined to ₹279 crore from ₹295 crore in the same period last year.

Asset quality reflected some pressure, as gross non-performing assets (GNPA) increased to 2.8% from 2.19% a year ago, while net non-performing assets (NNPA) rose to 0.94% from 0.71% in Q3FY24.

The bank's assets under management (AUM) reached ₹27,984 crore, a 19% year-over-year growth. Of these assets, 68% were secured in nature.

Stock Price Performance

Jana Small Finance Bank's stock has gained over 12% in the past month but experienced a 39% decline over six months. On January 21, 2025, the stock hit it’s 52-week low of ₹364 while it was listed at ₹396 per share on February 14, 2024 and hit it’s All-Time High of ₹760.85 on June 19, 2024..

On January 22, the shares were trading at ₹419.10 apiece on the BSE, 14.37% higher at 10:05 AM.

On January 21, 2025, the stock hit it’s 52-week low of ₹364 while it was listed at ₹396 per share on February 14, 2024 and hit it’s All-Time High of ₹760.85 on June 19, 2024.

Summary

Jana Small Finance Bank's Q3FY25 results reflect a mixed financial performance, with growth in NII and AUM offset by declines in net profit and dropping asset quality concerns. Despite these challenges, the stock's recent surge indicates a positive sentiment among investors.