Jana Small Finance Bank's NCDs, FDs rated 'IND A/Stable'

Jana Small Finance Bank (JSFB) received an affirmation of 'IND A/Stable' for its non-convertible debentures (NCDs) and fixed deposits (FDs) from India Ratings and Research as of October 7, 2025. This rating applies to fixed deposits totaling INR200,000 million and NCDs amounting to INR1,250 million, a reduction from the previous INR3,500 million. The bank’s credit profile benefits from a diversified portfolio with a growing share of secured products, adequate capitalisation (CAR at 20.5% as of June 2025), and a moderation in asset quality during FY25, with GNPA and NNPA at 2.5% and 0.9% respectively.

However, the rating remains constrained by elevated refinancing risks at its holding companies, Jana Capital Limited and Jana Holdings Limited, which have outstanding debt of INR34 billion as of June 2025. JSFB's ability to mobilize low-cost deposits also remains a key monitorable, with the CASA ratio declining to 17.8% as of June 2025 and the cost of funds increasing to 8.0% in 1QFY26.

JSFB reported a profit after tax (PAT) of INR1.02 billion in 1QFY26, with a return on assets (RoA) of 1.05%. The bank's total assets stood at INR393.66 billion and total equity at INR42.31 billion as of 1QFY26. The bank's liquidity coverage ratio was 171% as of June 30, 2025, well above the regulatory requirement.