Jana Small Finance Bank IPO: The Good and The Bad

Published:  07th Feb 2024

About the bank

It is the fourth-largest small finance bank in deposit size and has 771 branches. It offers loans for agriculture, MSMEs, NBFCs, mortgage services, etc.

IPO details

Post IPO

Financial history

Key ratios

The positive

The bank has low regional dependence. The highest concentration of its business from a single state does not exceed 14 per cent.

The negative

High credit cost of 3.6 per cent, which reflects poor credit quality. It also has a historically low provision coverage ratio (three-year average) of 31.4 per cent.

Risk report

Is the bank's price-to-book ratio lower than its peers' average level? Yes. It is valued at a price-to-book ratio of 1.4, lower than its peers' average level of 2.3.