ABOUT JANA SMALL FINANCE BANK LIMITED
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 institution working on financial inclusion.
The bank deliver 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 And 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, Tata Capital Growth Fund are some of Jana Small Finance Bank’s prominent shareholders.
26 July 2006
Category / Sub-Category of the Company
Public Company Limited by Shares
Address of the Registered office and contact details
The Fairway Business Park, First Floor,
Survey No.10/1, 11/2 & 12/2B,
Off Domlur, Koramangala Inner Ring Road,
Next to EGL Business Park Challaghatta,
Bengaluru – 560071
Name, Address and Contact details of Registrar and Transfer Agent, if any
KFin Technologies Private Limited, Selenium, Tower B, Plot No. 31 and 32 Financial District Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032 Telangana, India.
Tel: +91 40 6716 222
PARTICULARS OF SUBSIDIARY AND ASSOCIATECOMPANIES
JANA SMALL FINANCE BANK LIMITED does not have any subsidiary or associate company.
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)
PRINCIPAL BUSINESS ACTIVITES OF THE COMPANY
Name and Description of main products/services
NIC Code of the product/service
Banking & Financial Services
(As on 28-02-2021)
Category of Shareholders
No. of Shares
% of total Shares of the company
JANA SMALL FINANCE BANK LIMITED UNLISTED SHARE DETAILS
Total Available Shares:
Rs. 10 Per Equity Share
Last Traded Price
Rs. 380.45 Crore
Small Finance Banks shall perform basic banking function 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 priority sector and 50% of its loan portfolio constitutes loans and advances of maximum up to Rs. 25 lakhs. The minimum paid up equity capital is 100 crores. The promoter’s stakes should be 40% minimum that must be brought down to 26% in 12 Years. The basic objectives for the setting up of SFBs are 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 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 to local and state wise lockdowns. However, Small finance banks are better prepared this year (2021) in second wave of 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, microfinance industry is likely to face asset quality pressure in the short term. However, the majority of microfinance industry will withstand the 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 CAGR of more than 40% through 2025. South India accounts for more than one third of the market share of Microfinance industry.
The advances and depositsin the Small Finance Bank industry has increased with the CAGR of 75.3% and 155.3% respectively during the period FY16-FY20. It is expected to grow with the CAGR of 23.0-24.0% during the period FY20-FY23. SFBs’ share in total banking industry has increased from 0.3% in FY19 to 0.5% in FY20 in case of credit, and deposits share has increased from 0.6% in FY19 to 0.9% in FY20 and reporting offices share has increased from 1.5% in FY19 to 2.8% in FY20.
KEY FINANCIALS OF JANA SMALL FINANCE BANK LIMITED (In Rs. Crores)
Provisions and Contingencies
NET PROFIT/(LOSS) FOR THE YEAR
Balance in P&L account brought forward
SOME OTHER IMPORTANT FINANCIAL PARAMETERS
Asset Under Management (In Rs. Crores)
Credit to deposit ratio
Net interest margin
Net worth (In Rs. Crore)
Number of active customers
BALANCE SHEET OF JANA SMALL FINANCE BANK LIMITED(In Rs. Crores)
CAPITAL AND LIABILITIES
Reserves and Surplus
Other liabilities and provisions
TOTAL CAPITAL AND LIABILITIES
Cash and balances with Reserve Bank of India
Balances with banks and money at call and short notice
Bills for Collection
PERFORMANCE OF THE COMPANY
Interest Income of Jana Small Finance Bank Limited has increased by 59% from Rs. 1,250.54 Crores in FY 2019 to Rs. 1,991.52 Crores in FY 2020.
Interest Expended increased 20% in FY 2020 to Rs. 980.16 Crores from Rs. 813.63 Crores in FY 2019.
Provisions and Contingencies has decreased significantly by 81.76% in FY 2020 to Rs. 250.4 Crores from Rs. 1,372.51 Crores in FY 2019.
The bank has turn profitable in FY 2020. In FY 2019, Jana small finance bank registered the loss of Rs. 1,949.06 Crores. In FY 2020, the bank made profits of Rs. 30.13 Crores.
Jana Small Finance Bank has reduced its borrowings from Rs. 4,086.47 Crores in FY 2019 to Rs. 2,898.74 Crores in FY 2020, a reduction of29%.
The banks Advances has increased by 60% in FY 2020 to Rs. 9,959.24 Crores from Rs. 6,217.08 Crores in FY 2019. Moreover, Deposits with banks has seen a massive rise of 129.88% in FY 2020. Deposits in FY 2020 reached Rs. 9,651.95 Crores from Rs. 4,198.70 Crores in FY 2019.
The bank’s capital adequacy ratio for FY 2020 was 13.12%, as against 12.27% in FY 2019.
Net NPAs of the bank has come down to 1.41% in FY 2020 from 4.39% in FY 2019.
JANA SMALL FINANCE BANK IPO
Jana Small Finance Bank has filed the DRHP with SEBI to float an initial share sale. The IPO comprises of fresh issuance of equity shares worth Rs. 700 Crores and an offer for sale of up to 92,53,659 shares by existing shareholders.
The Jana small finance bank has proposed to utilize the net proceeds from the fresh issue towards augmenting its Tier – 1 capital base to meet future capital requirements.
The proceeds will also be used for meeting the expenses in relation to the offer.
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