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Jana Small Finance Bank IPO
Jana Small Finance Bank Limited
₹14,148 /36 sharesMinimum Investment
Jana Small Finance Bank IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 7 Feb ‘24 - 9 Feb ‘24 | ₹14,148 | 36 | ₹393 - ₹414 |
| Issue Size | IPO Doc |
|---|---|
| 570.00Cr | RHP PDF |
Subscription rate
| Qualified Institutional Buyers | 38.75x |
| Non-Institutional Investor | 25.05x |
| Retail Individual Investor | 5.46x |
| Employees | 1.95x |
| Total | 18.50x |
About Jana Small Finance Bank
Founded in
2006
Managing director
Mr. Ajay Kanwal
Parent organisation
Jana Small Finance Bank Limited
Strengths & Financials of Jana Small Finance Bank
Strengths
Risks
Jana Small Finance Bank has been operating since March 2018. Formerly an NBFC, it now offers a diverse range of deposit products, including current accounts, savings accounts, recurring deposits, and term deposits with competitive interest rates.
From March 31, 2021, to September 30, 2023, the bank experienced substantial deposit growth, reaching Rs. 18,936.724 crore by September 2023. This represents a CAGR of 15.16%, making it one of the top four Small Finance Banks in India in terms of deposit size.
The bank's deposits increased from nil in March 2018 to Rs. 18,936.72 crore by September 2023. Gross advances rose from Rs. 11,838.98 crore (March 31, 2021) to Rs. 21,347.13 crore (September 30, 2023), showcasing a CAGR of 23.31%.
In 2019, Jana Small Finance Bank introduced affordable housing loans, secured business loans, loans against fixed deposits, and two-wheeler loans. Gross secured advances surged from Rs. 5,076 crore (March 31, 2021) to Rs. 9,904.75 crore (March 31, 2023), boasting a CAGR of 39.69%.
The bank has established a pan-India presence with 771 banking outlets across 22 states and two union territories, including 278 outlets in unbanked rural centres.
The bank's Illiquidity Ratio, standing at 40.24% as of September 30, 2023, reflects a relatively high proportion of illiquid assets, impacting its ability to meet short-term obligations.
With a Gross NPA % of 2.44% and Net NPA % of 0.87% as of September 30, 2023, the bank has managed comparatively low non-performing assets, although changes in provisioning requirements or an inability to control NPAs could impact its financial standing.
The bank deals with unsecured loans, particularly Microfinance Loans with customers having limited income sources. This exposes the bank to a higher credit risk and failure to recover such loans could adversely affect the bank's financial condition.
Asset liability mismatches may impact the bank's liquidity, potentially leading to adverse effects on its financial condition, results of operations, and cash flows. As of September 30, 2023, there was a negative cumulative liquidity gap of Rs. 2,001.7 crore for the period spanning six months to one year, a negative cumulative liquidity gap of Rs. 5,662.82 crore for over one year to three years, and a negative cumulative liquidity gap of Rs. 4,072.99 crore for over three years to five years.
Concentrated customer bases in Tamil Nadu, Karnataka, Maharashtra, and West Bengal make the bank susceptible to adverse developments like economic downturns, political unrest, or natural disasters in these regions.
The bank’s promoters JCL and JHL incurred losses in recent years, potentially limiting their ability to infuse additional capital. JHL showed a loss of Rs. 129.34 crore for the six months ended September 30, 2023. This, coupled with uncertainties in obtaining capital from other sources, may adversely impact the bank's business.
There is an unresolved dispute between Jana Small Finance Bank and the Bank of Maharashtra over a pool of receivables amounting to Rs. 100 crore, along with associated interest payable.
Contingent liabilities not provided for as per AS 29 could have adverse implications for the bank's financial condition, results of operations, and cash flows. The total amount as of September 30, 2023 is Rs. 103.66 crore.
Jana Small Finance Bank Financials
*All values are in Rs. Cr
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Application Details of Jana Small Finance Bank IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹393 - 414 | Upto ₹2 Lakh |
| Employee | ₹393 - 414 | Upto ₹2 Lakh |
| High Networth Individual | ₹393 - 414 | ₹2 - 5 Lakh |
For Jana Small Finance Bank IPO, eligible investors can apply as Regular & Employee.