On the secured business side, the bank is focusing on MSME loans, vehicle loans especially two-wheeler financing and gold loans which together contributed about 30% of the gross loan of Rs 37612 crore at the end of June.
“With TVS Venu group coming as a strategic investor, two-wheeler financing is likely to get a boost. The festive demand would also contribute to it,” Jana managing director Ajay Kanwal told ET.
The TVS Venu Group has agreed to acquire a 9.9% stake in the bank, creating financial synergies and cross-selling possibilities between TVS Motor Company and the bank’s mass retail loan products. The investment deal is yet to receive Reserve Bank of India’s approval.
Jana reported a 52% jump in its first quarter net profit at Rs 155 crore over Rs 102 crore in the year ago period, supported by a 33% rise in net interest income at Rs 782 crore.
Its net interest margin for the quarter improved to 7.5% from 6.6% in the corresponding quarter last year. Its gross non-performing asset ratio came down to 2.24% at the end of June from 2.76% a year prior.
The bank gave a guidance of 80% rise in annual net profit to Rs 600 crore in FY27 from Rs 333 crore in the last fiscal. The guidance for loan growth is 19-21% while deposit growth is 23-25%.
At the end of June, the bank witnessed a 26% year-on-year gross loan growth while deposits grew 22% to Rs 35756 crore.