Jana Small Finance Bank (SFB) on Thursday filed a draft red herring prospectus (DRHP) for a fresh challenge of shares worth Rs 700 crore, accompanied by a sale of shares by current investors.
The investors seeking to sell shares by way of the present for sale (OFS) route include things like Alpha TC Holdings, Bajaj Allianz General Insurance Company, ICICI Prudential Life Insurance Company and Vallabh Bhanshali. “We intend to utilise the Net Proceeds to augment our Bank’s Tier -I capital base to meet our Bank’s future capital requirements, which are expected to arise out of growth in our Bank’s assets, primarily our Bank’s advances and investment portfolio, and to ensure compliance with applicable RBI regulations and guidelines,” the SFB mentioned in the DRHP.
Jana SFB’s deposits grew at an annual price of 129.9% and stood at Rs 9,650 crore on March 31, 2020, up from Rs 4,200 crore in the earlier year. It claimed to have witnessed the highest disbursement development price and assets below management (AUM) development in FY20 amongst SFBs. “The asset book of Jana SFB continued to diversify with 25.0% of the book being secured in FY20 as compared to 15.0% in FY19,” the bank mentioned. Its total secured advances rose to Rs 2,860 crore in FY20 from Rs 1,000 crore in FY19.
Its capital adequacy ratio stood at 19.3%, with the tier-I ratio at 13.1%, in FY20.
The bank’s net interest margin (NIM) stood at 9.36% at the finish of September 2020, down from 9.81% as on March 31, 2020. As on September 30, 2020, Jana SFB’s gross non-performing assets (NPAs) stood at 2.72%, down from from 42.21% as on March 31, 2018.
The bank attributed the reduction in negative loans to a concentrate on rising secured advances to minimize the danger of loan losses and development in its agricultural and allied loans advances inside the unsecured advances.
As on September 30, 2020, of a total of Rs 10,419 crore of gross advances outstanding, Rs 44.37 crore, or .43%, have been restructured below the Reserve Bank of India’s (RBI) MSME scheme. The actual create-offs for the six months ended September 30, 2020, stood at Rs 12.34 crore, when that for the year ended March 31, 2020 stood at Rs 49.85 crore.