Jana Small Finance Bank Share

Jana Small Finance Bank Limited Pre-IPO/ Unlisted Share - Company Overview

JANA SMALL FINANCE BANK LIMITED is a scheduled commercial bank. It was first started as Janalakshmi Financial Services Limited in 2016 as an Indian Micro Finance Institution (MFI) to provide finances for India’s low-income and under-banked population. Later in 2017, Janalakshmi Financial Services Limited got a Small Finance Bank license. Therefore in 2018, it rebranded its name to Jana Small Finance Bank Limited and started operations as a Small Finance Bank.

The Jana Small Finance Bank was established in Bengaluru. Today, it is recognized globally as one of the most innovative financial institutions working on financial inclusion.

The bank delivers its products through Branches, business correspondents, ATMs, ATM cum debit cards, mobile banking platforms (including unified payment interface facilities), internet banking portals, and SMS alerts.

On February 28, 2021, Jana Small Finance Bank Limited had 611 Branches, of which 197 were metro Branches, 178 were urban Branches, 70 were semi-urban Branches and 166 were rural Branches as on February 28, 2021, the bank had operations in 19 states and 3 union territories.

Bajaj Alliance, Enam Holdings, Havells, ICICI Lombard, Morgan Stanley Private Equity Asia, and Tata Capital Growth Fund are some of Jana Small Finance Bank’s prominent shareholders.

Jana Small Finance Bank Unlisted Share Details as of March 31, 2022

Jana Small Finance Bank Limited Incorporation Details

Jana Small Finance Bank Limited Particulars of Subsidiary and Associate Companies

Jana Small Finance Bank Limited does not have any subsidiary or associate company.

Jana Small Finance Bank Limited Board of Directors

Ramesh Ramanathan (Non-executive Chairman)

Ajay Kanwal (MD & CEO)

Ramalingam Ramaseshan (Non-Executive Independent Director)

Vikram Gandhi (Non-Executive Independent Director)

Chitra Talwar (Independent Director)

Eugene Emmanuel Karthak (Non-Executive Independent Director)

P R Seshadri (Non-Executive Independent Director)

Rahul Khosla (Non-Independent & Non-Executive Director)

Vijayalatha Reddy (Non-Executive Independent Director)

Jana Small Finance Bank Limited Principal Business Activities

Jana Small Finance Bank Limited Shareholding Pattern (As of 31-03-2022)

Industry Outlook

Small  Finance  Banks shall perform basic banking functions like acceptance of all types of deposits and lending loans to unbanked areas of the country. Small Finance Banks have to follow all the norms and regulations applicable to commercial banks like maintenance of  Cash  Reserve  Ratio and Statutory Liquidity Ratio.

Small Finance Banks are required to give 75% of their loan to the priority sector and 50% of their loan portfolio constitutes loans and advances of a maximum of up to Rs. 25 lakhs. The minimum paid-up equity capital is 100 crores. The promoter’s stakes should be 40% minimum which must be brought down to 26% in 12 Years. The basic objectives for the setting up of SFBs are to provide credit facilities to small business units, small farmers,  micro and small industries, and unorganized sectors and reform to improve financial inclusion in the country. Small Finance Banks cannot perform non-banking financial services and are not allowed to lend to big industries.

2020 was a year mainly dominated and impacted by COVID-19. Small Finance Banks are beginning to feel the effect of local and state-wise lockdowns. However, Small finance banks are better prepared this year (2021) in the second wave of the COVID-19 pandemic. Rural customers of Small Finance Banks are less affected by the second wave of COVID-19. There have been delays in collections, but collections have been hit only 1-3% in this second wave of COVID.

According to ICRA, a rating agency, the microfinance industry is likely to face asset quality pressure in the short term. However, the majority of the microfinance industry will withstand any stress as their collection capacity is improving. Moreover, their balance sheets mention that they are maintaining sufficient liquidity for tackling emergencies.

The collection capacity of the small finance bank industry improved to around 102%. The Indian microfinance market is expected to grow at a CAGR of more than 40% through 2025. South India accounts for more than one-third of the market share of the Microfinance industry.

The advances and deposits in the Small Finance Bank industry have increased with a CAGR of 75.3% and 155.3% respectively during the period FY16-FY20. It is expected to grow with a CAGR of 23.0-24.0% during the period FY20-FY23. SFBs’ share in the total banking industry has increased from 0.3% in FY19 to 0.5% in FY20 in the case of credit, and deposits share has increased from 0.6% in FY19 to 0.9% in FY20, and reporting office's share has increased from 1.5% in FY19 to 2.8% in FY20.

FAQS ON JANA SMALL FINANCE BANK UNLISTED STOCK 

Q1) Jana Small Finance Bank is listed on BSE and NSE.

NO, Jana Small Finance Bank is not listed on BSE and NSE

Q2) Which segment of the economy does Jana Small Finance Bank focus on?

Jana Small Finance Bank focuses on India's low-income and under-banked population.

Q3) which type of bank is Jana small finance bank?

Jana Small Finance Bank Limited is a scheduled commercial bank.

Q4) Can I buy Jana small finance bank shares?

Yes, you can buy Jana small finance bank share, for more information visit us at wwipl.com or contact us. 

Q5) Is Jana Small Finance Bank Limited profitable?

Yes, Jana Small Finance Bank is profitable