Analysts/Institutional Investor Meet/Con. Call Updates

JSFB/SEC/2026-27/101 29th October 2026 BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai 400001, Bandra (East), Mumbai 400051, Maharashtra Maharashtra. Dear Sir/ Madam, Subject: Transcript of earnings conference call for the quarter ended 30th September 2026 Ref: Regulations 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 In continuation to our earlier intimation regarding the earnings conference call with the investors/ analysts meet for the quarter ended 30th September 2026. Please find enclosed the transcript for the Q2 & HY1 of FY26 earnings conference call conducted after the meeting of Board of Directors held on 23rd October 2026. Thanking you Yours faithfully, For Jana Small Finance Bank Limited Lakshmi R. N Company Secretary and Compliance Officer JAMA KARO, JANA KARO. Registered Office: Jana Small Finance Bank Limited The Fairway Business Park, # 10/1, 11/2 & 12/2B, Telephone : 080-46020100 E-mail : customercare@jana.bank.in Off Domlur, Koramangla Inner Ring Road, Next to 080-37620100 Website : www.jana.bank.in Embassy Golf Links, Challaghatta, Bengaluru -560071. Toll-free No. : 1800 2080 CIN: L65923KA2006PLC040028 “Jana Small Finance Bank Limited Q2 & H1 FY27 Earnings Conference Call” October 23, 2026 MANAGEMENT: MR. AJAY KANWAL – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER MR. K. S. RAMAN – EXECUTIVE DIRECTOR AND HEAD – RETAIL FINANCIAL SERVICES MR. ABHILASH SANDUR – CHIEF FINANCIAL OFFICER MODERATOR: MR. GAURAV PUROHIT – SYSTEMATIX GROUP Page 1 of 15 Jana Small Finance Bank Limited October 23, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Q2 & H1 FY27 Earnings Call of Jana Small Finance Bank hosted by Systematix Group. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference call over to Mr. Gaurav Purohit from Systematix Group. Thank you, and over to you, sir. Gaurav Purohit: Thank you, Iqra. Good afternoon, everyone, and welcome to Jana Small Finance Bank's Q2 & H1 FY27 Earnings Call. On behalf of Systematix Group, I would like to thank the Jana management team for giving us the opportunity to host this call. We are pleased to have with us today the bank's senior management team led by Mr. Ajay Kanwal, Managing Director and CEO; Mr. K. S. Raman, Executive Director; Mr. Abhilash Sandur, Chief Financial Officer; along with other members of the senior management team. With that, I would like to hand over the call to Ajay sir for his opening remarks, following which we will open the floor for questions. Over to you, sir. Ajay Kanwal: Thank you so much, and good evening to everyone. As always, we will refer to the investor deck, which you have loaded on, and we will talk through a few specific slides, and then we would welcome Q&A, rather questions from all of you. Let's move to Slide number 3. In Slide number 3, there are a very important few points to note. Q2 has been the highest ever PBT we had in our history. Having seen our Q2 performance, which now if you add the Q1, it reaches INR326 crores, which is equal to the PAT of last year of INR326 crores. Hence, we would like to take our guidance up, which was originally increase of 80% in PAT to 100% of PAT. So we should double our PAT this year versus last year. A few of the key drivers which are getting us there. First is our net interest margins at 7.54% for Q2 up from 6.5% last Q2. And one of the contributors to this net interest margin improvement, other than the various components which have gone into build the asset book, we've obviously seen a growth of MFI, which was a negative growth till last year. That has helped improve the NIMs. And of course, cost of funds is down from 7.9% to 7.4%. So a good combination of slightly better mix on the loan side and drop in cost of funds. I'm very glad to report that our best ever PBT is accompanied by growth in secured assets, which has seen a secular improvement year-on-year, and now we stand at 73.7%. For folks who are joining this call the first time, we have several times said that our intention is to be around 80% of secured assets, and that we consider as a good answer. I must say, while secured assets, improvement in NIMs, our operating costs has seen a 15% year-on-year increase. On the right side, you can see a graph which explains that how the jaws is widening, which is cost run rate is much lower than the revenue run rate. And that has become very healthy this quarter because the net interest income is up 35%, cost up 15%. Page 2 of 15 Jana Small Finance Bank Limited October 23, 2026 So, you've got a positive jaws of 20%. But very importantly, absolute cost in Q2 is lower than Q1, marginally so, but yet we have been able to arrest cost. I can also tell you with great certainty that the likelihood of cost remaining muted and us getting more operating leverage for our business is a fairly highly likely expectation that you should have. So cost under control, NIMs are getting better, secured assets are growing. Finally, we should talk about how the quality of the book is, which is in terms of portfolio health. Gross NPA is down to 2.17%. Our net NPA is up at 1.08%. We normally do extra provision to drop net NPA below 1%. But this time, we have chosen to wait because we have lodged our claims for the guarantee program, which is about INR68 crores. That will comfortably get us below 1% moment the claims are realized. So rather than provision now and then work around the whole accounting system next quarter again once this claim comes, we have chosen that we will go to 1.08%. And then once the claim is received, which we already lodged, I think we will anyway come below 1%. So all-in-all, a very, very healthy quarter. But importantly, when it comes to cost, when it comes to NPA, when it comes to NIMs, it is signalling that we're going to have a very good year. I will now move to the next page, Page number 4. I've already mentioned the gross NPA and how that has moderated. I want to draw your attention on this page to the chart below, which is on the SMA and slippages. So in quarter 1, we had a marginal increase in SMA growth. It led to a slight increase in slippages, and we had two one-offs one is a secured loan, which has gone into NPA where we have collateral, which covers it and a small impact in the MFI book of drought, both in Assam, Maharashtra and Karnataka, which impacted 0.3% of slippages. Given that Q2 SMA has dropped over Q1, you should naturally expect that slippages will be lower in Q3. Secondly, with these one-offs not being there, it will certainly be lower than Q2. So that's something that I did want to give you a heads up on how the book is looking and what we expect. And what it translates in terms of credit cost, I would probably ask you to wait for Page number 6, but let me first cover Page 5, and this is an important page. Yes. Good evening again, folks. So I'm on Page number 5, very important page. You can see our total unsecured book gross NPA is INR673 crores. The provisions we have against is INR377 crores, leaving uncovered book of INR296 crores. But this INR296 crores is completely under the guarantee program. In fact, the guarantee program is at INR319 crores, of which I had mentioned earlier that we have already lodged INR68 crores as claims and the balance INR251 crores, we would lodge next year in Q3 again. So from a variety of perspectives, I think one is, obviously, the collection efficiencies have gone up and has been at 99%, which we will talk of when we go to the asset page. More importantly, the old slippages for which we have been paying guarantee commission over the last, I would s [Showing first 8,000 characters — download PDF for full document]