Jana SFB targets 20:80 secured-unsecured loan mix; expects TVS partnership to boost two-wheeler financing

Kolkata: is aiming to bring down its share of in total gross advances to 22-23% in the next two years from about 27% at present, while its long-term objective is to have a 20:80 unsecured-secured mix.

On the secured business side, the bank is focusing on , vehicle loans especially and gold loans which together contributed about 30% of the gross loan of Rs 37612 crore at the end of June.

“With 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 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 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.