Jana Small Finance Bank
Book Building issueMainboard₹570 Cr issue
-4.35%
Listing gain over issue price
Issue size
₹570 Cr
1 lot at cut-off
₹14,904
Lot size
36shares
Open
07 Feb 2024
Close
09 Feb 2024
Allotment
12 Feb 2024
Listing
14 Feb 2024
Listing performance
Issue price
₹414
Listed at
₹396
Listing-day close
₹368.20
Latest price
₹383.15
Close on 23 Oct 2026
Listing gain
-4.35%
Return since issue
-7.45%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Feb 2024 – 09 Feb 2024
- Listing date
- 14 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹414 per share
- Lot size
- 36 shares
- Issue type
- Book Building issue
- Total issue size
- ₹570 Cr
- Market cap at offer price
- ₹4,330 Cr
- Promoter holding
- 25.20% → 22.52% pre-issue → post-issue
- ISIN
- INE953L01027
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- The Fairway Business Park, #10/1, 11/2, 12/2B, off Domlur, Koramangala Inner Ring Road, Next to EGL, Challaghatta, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 40,32,588 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 36 shares per lot, in multiples, at ₹414
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 36 | ₹14,904 |
| Retail (max) | 13 | 468 | ₹1,93,752 |
| S-HNI (min) | 14 | 504 | ₹2,08,656 |
| S-HNI (max) | 67 | 2,412 | ₹9,98,568 |
| B-HNI (min) | 68 | 2,448 | ₹10,13,472 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
40,32,588
Anchor portion
₹167 Cr
at ₹414 per share
Valuation and performance
Valuation at offer price
₹414 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 27.40 | 40.77 |
| P/E (×) | 15.11 | 10.15 |
| Price to book (×) | 1.28 | — |
| Market cap | — | ₹4,330 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 14.40%
- Debt / equity
- 3.49
- NAV per share
- ₹323.23
- Price to book
- 1.28
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Jana Small Finance Bank
Jana Small Finance Bank Limited was incorporated as Janalakshmi Financial Services Private Limited on July 24, 2006 in Bengaluru, Karnataka. It commenced business as a non-banking financial institution (NBFC-MFI) in 2008, converted to a public limited company in 2015, and received final approval from the RBI on April 28, 2017 to establish and carry on business as a small finance bank (SFB). The Bank commenced SFB operations on March 28, 2018. As of September 30, 2023, the Bank operated 771 banking outlets across 22 states and two union territories. Its primary revenue sources are deposits (demand, savings, and term deposits) and advances. The Bank offers secured loans including micro loans against property, affordable housing loans, term loans to NBFCs, loans against fixed deposits, two-wheeler loans, and gold loans, as well as unsecured loans including individual and micro business loans, agricultural loans, and joint liability group loans.
Company Analysis
from RHPJana Small Finance Bank Limited is a small finance bank offering secured and unsecured lending products and deposit services to underserved and unserved segments across India.
Jana Small Finance Bank Limited was incorporated as Janalakshmi Financial Services Private Limited on July 24, 2006 in Bengaluru, Karnataka. It commenced business as a non-banking financial institution (NBFC-MFI) in 2008, converted to a public limited company in 2015, and received final approval from the RBI on April 28, 2017 to establish and carry on business as a small finance bank (SFB). The Bank commenced SFB operations on March 28, 2018. As of September 30, 2023, the Bank operated 771 banking outlets across 22 states and two union territories. Its primary revenue sources are deposits (demand, savings, and term deposits) and advances. The Bank offers secured loans including micro loans against property, affordable housing loans, term loans to NBFCs, loans against fixed deposits, two-wheeler loans, and gold loans, as well as unsecured loans including individual and micro business loans, agricultural loans, and joint liability group loans.
BankingFinancial ServicesMicrofinance
Objects of the Issue
- For augmentation of our Bank's Tier – 1 capital base p.28
- Augment the Bank's Tier-I capital base to meet future capital requirements arising from growth in advances and investment portfolio, and ensure compliance with RBI regulations ₹4,620 million (Fresh Issue component) p.117
- Augmenting Tier-1 capital base and improving CRAR; meeting future capital requirements and regulatory compliance on capital adequacy p.189
- Fresh Issue ₹4,620 million p.552
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹[●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 4,620 million
- Offer for Sale
- Up to 2,608,629 Equity Shares aggregating up to ₹ [●] million
- Face Value
- ₹10 each
Business Model
The Bank generates revenue from the spread between interest earned on advances and interest expended on deposits and borrowings. It offers basic banking services focused on financial inclusion for small businesses, marginal farmers, micro and small enterprises, and the unorganized sector. The Bank maintains a portfolio of secured advances (57.42% of gross advances as of September 30, 2023) and unsecured advances.
Business Segments
Secured loans including micro loans against property, loans to micro, small and medium enterprises, affordable housing loans, term loans to non-banking finance companies, loans against fixed deposits, two-wheeler loans and gold loans
Unsecured loans including individual and micro business loans, agricultural and allied loans, and loans offered to groups of women as per the joint liability group model
Demand deposits, savings deposits and term deposits
Advances to farmers and agricultural enterprises
Advances to industrial enterprises
Advances to service sector businesses
Individual microfinance loans, micro business loans, and other consumer lending
Interest and dividend income from investments, profit/loss from sale of investments, and money market operations
Lending business providing advances to customers
Investment portfolio management
Deposit mobilization from customers
Includes secured business loans, micro loans against property (Micro LAP), MSME loans, affordable housing loans, term loans to NBFC, loans against fixed deposits, two-wheeler loans, and gold loans.
Includes individual and micro business loans, agricultural and allied loans, and group loans offered to groups of women as per the Joint Liability Group (JLG) model.
Current accounts, savings accounts, recurring deposits, and term deposits with multiple interest payment options and competitive interest rates, including higher rates for senior citizens.
Corporate agent for third-party life insurance products, general (non-life) insurance products and health insurance products, including COVID-19 insurance products; Point of Sales (POS) terminals and payment gateway services through merchant acquiring partners.
Secured lending products including micro housing loans, micro loans against property (Micro LAP), MSME loans, affordable housing loans, term loans to NBFCs, loans against fixed deposits, two-wheeler loans, and gold loans.
Unsecured microfinance loans offered under RBI guidelines to low-income households (annual income up to ₹300,000), including group loans, individual loans, agricultural and allied loans, structured for income generation, business expansion, home renovation and debt consolidation.
Acceptance of deposits through 23 variants of savings accounts, 18 variants of current accounts, and 28 variants of term deposits (fixed and recurring), with features including competitive interest rates, cheque books, digital account opening via DIGIGEN platform, and sweep facilities.
Distribution of life and health insurance products through partnerships with ICICI Prudential Life Insurance, Bajaj Allianz Life Insurance, ICICI Lombard, and Bajaj Allianz General Insurance; distribution of POS terminals through mSwipe partnership referral model.
Lending to individuals for affordable housing, two-wheeler finance, and other retail purposes
Lending to micro and small enterprises, supply chain financing, and financial institutions
Lending for affordable housing and micro housing purposes
Lending for two-wheeler purchases; launched in 2020
Core branch banking operations including deposits and lending
Includes all investment portfolios, Profit/Loss on sale of Investments, equities, income and expense from money market operations
Includes all advances to companies and statutory bodies, that are not included under Retail Banking
Includes lending to and deposits from retail customers and identified earnings and expenses of the segment
Includes all other operations not covered under Treasury, Corporate/Wholesale Banking and Retail Banking
The treasury segment primarily consists of entire investment portfolio of the Bank.
The retail banking segment serves retail customers through a branch network. Exposures are classified under retail banking taking into account the status of the borrower (orientation criterion), the nature of product, granularity of the exposure and the quantum thereof. Revenues of the retail banking segment are primarily derived from interest and fees earned on retail loans.
Wholesale Banking includes all advances to companies and statutory bodies, that are not included under Retail Banking.
Other Banking includes other items not attributable to any particular business segment.
Includes all investment portfolios, profit/loss on sale of investments, and income and expenses from money market operations.
Includes lending to and deposits from retail customers and identified earnings and expenses of the segment.
Includes all advances to companies and statutory bodies that are not included under Retail Banking.
Comprises all operations not covered under Treasury, Corporate/Wholesale Banking and Retail Banking.
SWOT Analysis
Strengths
- • Established small finance bank with growing branch network(p.27)
- • Strong asset under management growth trajectory(p.37)
- • Robust deposit growth(p.37)
- • Capital adequacy above regulatory requirements(p.37)
- • Established pan-India presence with strong brand recognition(p.193)
- • Professional and experienced management and Board(p.193)
- • Customer-centric organization with 16+ years serving underbanked customers(p.193)
- • Digitalised bank with majority services in digital form(p.193)
- • Integrated risk and governance framework(p.193)
- • Fast growing retail deposits base and diversified deposit franchise(p.193)
- • Proven execution ability(p.193)
- • Digitalised bank with integrated multi-channel operations(p.267)
- • Fourth largest SFB by AUM and deposit size(p.262)
- • Pan-India presence across 22 states and 2 UTs with 771 banking outlets(p.262)
- • Fast growing retail deposits with CAGR of 15.16%(p.272)
- • Proven execution ability with significant scale-up of deposits from nil to ₹189.4bn(p.274)
- • Experienced management with average 27 years in financial services(p.269)
- • Strong secured advances growth at CAGR of 39.69%(p.274)
- • Lower Cost of Funds at 7.55% due to retail deposit base(p.272)
- • Digitized operations and technology-driven business model(p.278)
- • Robotic process automation reducing manual work and errors(p.278)
- • Diversified asset product portfolio across secured and unsecured segments(p.279)
- • Substantial rural branch network in unbanked areas(p.305)
- • Strong focus on financial inclusion and underserved segments(p.281)
- • Experienced leadership with stable management team structure(p.371)
- • Strong capital adequacy ratio exceeding regulatory requirements(p.387)
- • Rapid growth in advances and AUM(p.382)
- • Strong deposit mobilization and growth(p.382)
- • Fourth largest Small Finance Bank by AUM and deposits as of September 2023(p.470)
- • Significant portfolio diversification into secured advances(p.470)
- • Strong growth in agricultural lending segment(p.470)
- • Significant NPA improvement over period(p.475)
- • High capital adequacy ratio(p.472)
- • Broad geographic presence in underserved markets(p.470)
- • Strong deposit growth with retail focus(p.504)
- • Improved profitability and net interest margin(p.473)
Weaknesses
- • Failure to meet listing deadline stipulation(p.51)
- • Non-compliance with sole promoter requirement(p.51)
- • High proportion of unsecured advances(p.46)
- • Missing statutory and regulatory records(p.51)
- • Irregular regulatory filings with RoC(p.51)
- • High gross NPA ratio historically(p.37)
- • Regulatory filing delays and incomplete disclosures with RBI and RoC(p.51)
- • High illiquidity ratio relative to industry benchmark(p.53)
- • Core deposit ratio below industry average indicating unstable funding base(p.54)
- • High illiquid assets ratio embedded in balance sheet(p.54)
- • Lending to microfinance NPA borrowers with earlier NPAs netted off creates asset quality deterioration risk(p.55)
- • Lowest Tier 1 capital ratio among peer banks(p.66)
- • Negative cash flows from operating activities(p.84)
- • High employee attrition rates impacting operational stability(p.89)
- • Promoter JHL (Non-Operating Financial Holding Company) in significant regulatory non-compliance with CAR and net owned funds deficits(p.101)
- • Promoter regulatory non-compliance – persistent CAR and leverage breaches(p.106)
- • Promoter going concern qualification – accumulated losses eroding net worth(p.107)
- • Promoter JCL capital adequacy severely breached – negative CAR(p.104)
- • Promoter JHL leverage severely out of compliance – over 100x regulatory limit(p.102)
- • Bank dependent on promoters' ability to infuse capital – promoters incurring consecutive losses(p.107)
- • Promoters subject to RBI sanctions and enforcement risk(p.106)
- • Promoter pledged all shareholding to debenture trustees(p.171)
- • Irregularities in regulatory filings with potential legal consequences(p.171)
- • Promoter share dilution through planned mandatory shareholding reduction(p.172)
- • Elevated GNPA ratio of 2.44% compared to industry peers(p.265)
- • Lower retail deposits share at 67.21% vs SFB industry leaders(p.272)
- • Concentration risk with top 3 states at 38.24% of gross advances(p.271)
- • High credit-to-deposit ratio of 110.94% indicating liquidity pressure(p.274)
- • Microfinance portfolio vulnerability to socio-political risks and concentration(p.234)
- • Capital adequacy ratio of 17.50% modest compared to some peers(p.265)
- • Concentration of advances in microfinance and personal loans(p.292)
- • Elevated non-performing advances in individual and micro business loans(p.296)
- • High employee attrition affecting operational capacity(p.318)
- • Declining mobile banking adoption among customer base(p.279)
- • Dependence on third-party technology platforms and service providers(p.314)
- • Accumulated losses carried forward on balance sheet(p.407)
- • Rising NPA ratio indicating credit quality challenges(p.391)
- • High reliance on borrowed funds for growth(p.400)
- • High credit cost impacting profitability(p.394)
- • Substantial concentration in unsecured advances(p.409)
- • High proportion of unsecured lending exposures default risk(p.476)
- • Heavy dependence on deposit funding cost sensitivity(p.493)
- • Significant operating expense burden relative to income(p.479)
- • Past NPA crisis and elevated provisions requirement(p.474)
- • Litigation against employees for collection practices(p.519)
- • Substantial recovery litigation with 2,051 SARFAESI matters involving ₹3,295.04 million(p.521)
- • Multiple direct tax assessments with significant disallowances and pending appeals across several years(p.521)
- • Large outstanding tax demand of ₹441.16 million from assessment for FY 2016-17(p.522)
- • Criminal litigation involving 259 FIRs registered by the Bank against employees and third parties(p.521)
- • 6,307 cases pending for alleged dishonoured cheques involving ₹4,757.78 million(p.521)
- • Failure to comply with SFB licensing requirement for mandatory listing by deadline(p.531)
Opportunities
- • Financial inclusion focus in underserved market segments(p.27)
- • Strong industry growth and market expansion potential(p.27)
- • Expansion of secured advances portfolio(p.37)
- • Priority sector lending requirement creates targeted growth in underserved segments(p.68)
- • Significant growth in microfinance loan portfolio with increasing focus on secured loans(p.58)
- • Expansion of product offerings including affordable housing and micro LAP loans(p.82)
- • Rapid deposit growth with retail focus providing stable funding base(p.76)
- • Listing on stock exchanges to enhance funding and liquidity(p.189)
- • Augment Tier-1 capital base to fuel business growth(p.189)
- • Expand lending business through improved capital adequacy(p.189)
- • Expansion of secured advances business with multiple new products(p.275)
- • Growth of agricultural and allied loans in underserved rural areas(p.276)
- • Rural credit penetration opportunity with only 7.76% share currently(p.224)
- • Microfinance industry growth at CAGR of 18-20% to Rs 5.7tn by FY26(p.253)
- • Affordable housing market growing at 17% CAGR to Rs 17.6tn by FY26(p.256)
- • MSME credit exposure growing at 15% CAGR to Rs 38.6tn by FY26(p.255)
- • India GDP growth momentum with 7.2% growth in FY23(p.222)
- • Expansion of retail deposit base and NRI customer segment(p.277)
- • Cross-selling multiple loan and insurance products to existing customers(p.278)
- • Expand transaction banking services to corporate and fintech partners(p.278)
- • Enhance digital onboarding and service capabilities through API integrations(p.314)
- • Expand affordable housing loans across more states and geographies(p.282)
- • Scale agricultural and allied loans with digitized sourcing and disbursement(p.288)
- • Expansion in retail and micro-housing lending segments(p.371)
- • Growth in priority sector lending with PSLC sales(p.410)
- • Improving operational efficiency metrics(p.382)
- • Rising net interest margins indicating pricing power(p.381)
- • Expansion of secured loan products including housing(p.470)
- • Growing adoption of digital platforms and direct sourcing(p.470)
- • Expansion of new product lines including NBFC lending(p.483)
- • Growing retail deposits base supporting lower cost of funds(p.505)
- • Integration of digital technology for customer onboarding(p.472)
- • Approval to open 415 banking outlets in Tier 1 and Tier 2-6 centres including rural areas(p.525)
- • RBI approval to participate in RTGS and NEFT payment systems(p.525)
- • Authorization to distribute life, general, and pension insurance products and mutual funds(p.526)
- • RBI approval for mobile banking services with flexible registration channels(p.526)
Threats
- • Regulatory inspection findings and compliance requirements(p.44)
- • RBI observations on capital adequacy and asset quality(p.44)
- • Risk of RBI penalties or license revocation(p.39)
- • Higher PSL requirements compared to other scheduled commercial banks(p.58)
- • Potential regulatory action due to past non-compliances(p.51)
- • Intense competition from other small finance banks, NBFCs, and informal lenders(p.96)
- • High delinquency rates in LAP segment pose collateral and recovery risks(p.97)
- • RBI regulatory requirements for CRR and SLR reduce lending capacity(p.64)
- • Non-compliance with financing covenants could trigger default provisions and acceleration(p.73)
- • Significant geographic concentration in Tamil Nadu, Karnataka, Maharashtra and West Bengal(p.86)
- • COVID-19 pandemic impact on collection and disbursement activities and borrower credit quality(p.98)
- • Rising interest rates could reduce loan demand and increase cost of funds(p.60)
- • Regulatory discretion on NPA classification and provisioning requirements(p.57)
- • Accounting standards transition risk – Ind AS implementation could worsen financial metrics(p.108)
- • RBI investment portfolio fair value measurement – increased provisioning and volatility(p.108)
- • Expected Credit Loss framework introduction – potential provision increase(p.109)
- • Rapid shareholder sale could materially decrease equity price post-lock-in(p.172)
- • Regulatory requirement to maintain minimum 15% CRAR continuously(p.189)
- • Regulatory changes and RBI capital requirement increases for SFBs(p.229)
- • Microfinance asset quality deterioration with PAR>30 at 11.4% for SFBs(p.251)
- • Competition from larger banks and NBFCs in MSME and gold loan segments(p.230)
- • Socio-political risks in microfinance segment impacting operations(p.234)
- • Interest rate volatility and deposit cost inflation(p.264)
- • Geopolitical uncertainty affecting credit growth and economic recovery(p.222)
- • Priority sector lending requirement of 75% constraining business flexibility(p.230)
- • Collection efficiency risks from seasonal and weather-related disruptions(p.251)
- • Intense competition from other small finance banks and traditional banks(p.315)
- • Increasing consolidation creating larger competitors through bank mergers(p.315)
- • Stringent regulatory requirements and compliance obligations for SFBs(p.315)
- • Priority sector lending mandate constraints(p.294)
- • Exposure to informal lending competition in microfinance(p.315)
- • RBI dividend restrictions limiting capital conservation(p.377)
- • COVID-19 related regulatory constraints on NPA classification(p.388)
- • Regulatory capital requirements limiting dividend payouts(p.377)
- • Interest rate sensitivity on deposit costs(p.381)
- • RBI regulatory pressure on lending ratios and capital requirements(p.484)
- • Intensifying competition from larger banks and consolidation(p.484)
- • Interest rate sensitivity and RBI monetary policy changes(p.477)
- • Economic downturn impacts on loan portfolio quality(p.480)
- • COVID-19 pandemic ongoing impacts on collection and disbursement(p.480)
- • Potential RBI regulatory action for non-compliance with SFB licensing guidelines(p.39)
- • Restriction on shareholding acquisition: No person can hold 5% or more without RBI approval(p.535)
- • Pending indirect tax assessments with aggregate demands of ₹186.41 million across three states(p.523)
- • 5,022 police complaints filed against bank employees for alleged criminal violations(p.521)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jana Capital Limited | Promoter | — | — |
| Jana Holdings Limited | Promoter | 25.23% | — |
| JHL (Jana Holding Limited) | Promoter | 25.20% (fully diluted basis pre-Offer) | — |
| Jana Holdings Limited (JHL) | Promoter | 25.20% | — |
| Jana Capital Limited (JCL) | Promoter | — | — |
| Jana Capital Limited | Promoter | — | — |
| Jana Holdings Limited | Promoter | 25.23% | — |
| TPG | Shareholder | — | — |
| HarbourVest Group | Shareholder | — | — |
| Amansa Capital | Shareholder | — | — |
| Morgan Stanley | Shareholder | — | — |
| Hero Ventures | Shareholder | — | — |
| Ramesh Ramanathan | Erstwhile Promoter / Non-Executive Non-Independent Director | — | — |
| Jana Urban Foundation | Erstwhile Promoter | — | — |
| Jana Capital Limited (JCL) | Promoter | 25.20% | — |
| Jana Holdings Limited (JHL) | Promoter | 25.20% | — |
| Jana Holding Limited | Promoter Group | — | — |
| TPG | Shareholder | — | — |
| HarbourVest Group | Shareholder | — | — |
| Amansa Capital | Shareholder | — | — |
| Morgan Stanley | Shareholder | — | — |
| Hero Ventures | Shareholder | — | — |
| Janalakshmi Urban Foundation (JUF) | Promoter Group | — | — |
Leadership
Ajay Kanwal · Managing Director and Chief Executive Officer
Abhilash Sandur · Chief Financial Officer
Lakshmi R N · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Jana Small Finance Bank IPO FAQs
What is the lot size of Jana Small Finance Bank IPO?
The minimum lot size of Jana Small Finance Bank IPO is 36 shares. One lot costs ₹14,904 at the cut-off price.
When does Jana Small Finance Bank IPO open and close?
Jana Small Finance Bank IPO opened for subscription on 07 Feb 2024 and closed on 09 Feb 2024.
What is the listing date of Jana Small Finance Bank IPO?
Jana Small Finance Bank IPO listed on 14 Feb 2024.