ICICI Securities has issued a buy rating on Jana Small Finance Bank with a revised target price of ₹600, up from the earlier target of ₹535. According to the research report dated July 16, 2026, the brokerage maintains its positive outlook on the stock, valuing it at 1.2x Sep'27E P/B (earlier: 1.1x FY27E P/B).
Jana Small Finance Bank delivered another robust quarter with Return on Assets (RoA) of 1.4% and Return on Equity (RoE) of 13.6%. As reported by ICICI Securities, the recovery in the unsecured portfolio helped the bank regain lost ground on the fee and revenue front, thereby recouping profitability. The bank's credit costs also receded due to a decline in the stress portfolio, benefiting from sectoral recovery in the microfinance institution segment.
ICICI Securities forecasts strong growth momentum for Jana Small Finance Bank in FY27. The brokerage expects PAT growth of >90% in FY27E (on a low base), with calculated RoA of 1.2% and calculated RoE of 13%. According to the report, the bank is moving towards its guidance of >80% FY27 PAT growth, positioning for a strong financial year ahead after a challenging FY26.
The brokerage expects Jana Small Finance Bank's return ratios to remain upbeat in FY27 following the tough FY26 performance. As reported by ICICI Securities, the bank's strong quarterly results and improving fundamentals support the positive investment thesis, with the revised target price reflecting confidence in the bank's ability to maintain its growth trajectory in the coming fiscal year.
