Jana Small Finance Bank Ltd (NSE: JSFB) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
R.J. kanwal — Management director
Abhilaz Sandur — CFO
Raman — NA
Analysts:
Chintan Shah — Analyst
Amanpartle — Analyst
Smith Shah — Analyst
Chia — Analyst
Harshit Javeri — Analyst
Suraj Chinde — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Jenna Small Finance Bank Ltd. Q3FY26 earnings conference call hosted by ICICI Securities Ltd. As a reminder, all participant lines will be in the lesson 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chintan Shah from ICICI Securities. Thank you. And over to you sir.
Chintan Shah — Analyst
Yeah, thank you Bhumi. Good evening everyone and welcome to the Q3FY26 results conference call of Jenna Small Finance Bank. We would like to thank Jenna Small Finance bank for giving us the opportunity to host the account call from the management. We have Mr. R.J. kanwal, our Managing Director and Chief Executive Officer, Mr. K.S. raman, Executive Director, Mr. Abhilaz Sandur, Chief Financial Officer and other senior management team members. Now without further ado, I would now like to hand over the floor to Mr. MD sir who will give his opening remarks and then post which we can open the floor for questions.
Thank you. And over to you sir.
R.J. kanwal — Management director
Thank you very much Chintan. And good evening to everyone. I would like to talk through Jana’s quarter three and nine months performance through the presentation that we uploaded on the stock exchanges. I’ll be referring to the specific pages and I’ll start with page number three. What we were hoping to see in quarter two we have finally seen in quarter three. So we are a quarter late in what we thought would be a bottoming out of all issues, specifically the slippages in SMA trend. But we have seen that decisively happen in quarter three.
I’m happy to report that we have seen not just slippage in SMA trend which had peaked in the first quarter of this year now has shown a sustainable and strong drop. To make sure that we are very comfortable with the direction the bank is taking. I’ve also done March 2026 expected high level guidances and I must tell you that the SMA and Slipperjee is for March 26 will be lower than March 24. And the significance of that is in March 24 is when the MFIS flows post that began. So we will go back to where we were in terms of slippage in sma as of March 26th.
Of course when I show you the details you will see that the trend has already begun in a serious way. We’ve also had our highest disbursal both in secured and unsecured since quarter one of FY25. So the highest disbursal quarter in 18 months including higher than quarter four of last year while secured has been a strong performance all through. What has made this specifically interesting is that the unsecured also the dispersals have been our highest ever in the last 18 months our NIM which has been on a decline has first time shown a modest growth of 10 pips.
We think this is a start because as unsecured businesses started growing and the cost of funds continue the decline, we will see further NIM improvement even in quarter four. After seeing the stress of last year and figuring out that it’s very difficult for a single lender to assume that his lending criteria and policies will hold him in good stead, we started putting our unsecured book under the guarantee program. Our total outstanding under the guarantee program is now 62% though the meaningful claims from this will only start from next year. I have a small slide to share with you later.
Our deposit book continues to show a robust growth of 30% year on year while our cost of fund comes down in quarter three which is last quarter the RBI returned our application for universal bank. We are updating the universal bank application now on the shortages and we will be resubmitting at an appropriate time. I now move to quarter four. Sorry page four. Now what did we not do? Well and I do think when we introspect it does seem to us that we under judge the velocity of the NPF lows in Q1 and were overtly bullish on the improvement that we thought will happen in Q2.
The Q2 expectation actually came through in Q3 so we quarter early in judging of how we would turn around the book. I’ve also explained in detail of where were the challenges and the reason of showing that is when you look forward on what to expect from the bank, this will be a good things to kind of focus on on what to expect. First is our unsecured book had a slow growth. It costed us a nimi compression of 20bps. Now the growth is back we should expect positive contribution on nims. Our secured brook has grown faster than we anticipated.
It gave us a positive of 40 crores on income line. But because we book all the costs upfront, whether it is a valuation or a legal or a sourcing or an incentive, the impact on cost is 54 crores. It is positive for the future but certainly for the first nine months has dragged us by 14 crores down. We had an increase collection and recovery cost that costed us 40 crores in the nine months. Now that things have ebbed out this should also be lowering itself. There has been a change in the labor code which is not just for the bank but for all companies.
That impacted us by 12 crores and of course the high Q1 slippages which gave us 110 crore drop. And the reason for showing this less to for anything else. But to give a good understanding of how things are now expected to change I move on to Slide 5. Here’s the credit cost as you can see Quarter 1 was 196. Quarter 2 204, Quarter 3 277. We are already on early fabric. We have seen the January numbers. It’s fair to say that we should expect the lowest credit cost for the year coming up in quarter four which I have stated here as 170 to 190 crores.
As a range our closing gross NP as of quarter three has also gone down to 829. We expect that to remain flat that is between 830 to 850 crores in the coming quarter now. So it’s pretty evident if you read the numbers that we have peaked out on our credit cost. We will see significant reduction next quarter itself and so also our GNP balances. And I now take you to quarter page six. This is a new slide we are giving which basically shows SMA book which is SMA012 of the bank. Here again you can see that our peak in the overall SMA book was at 6.2 in June which was end of first quarter has come down to 4.6 and we expect it to be at 4% when we finish the year.
Unsecured peaked at 7.3% which on the right hand side as of June down to 4.2 expected to be around 3.8% when we finish the year. Similarly secured which went up to 5.7 is down to 4.8. Expected to come down to 4% when we finish the year. The SMA trend is a clear indication of why the credit cost will now be ebbed out. I did speak of strategic move made by the bank which is to ensure that event risk out of our control should not be a source of significant challenge for us in the future. We started putting our MFI book under the guarantee program.
I have shown here which is on slide 7 how the unsecured book will give us the returns in terms of recoveries from the guarantee program in the future. So let me explain this this is only disbursal that we expect till March 2026. So I’m taking a point of time P and L for how the guarantee program that we have spent money on will impact. So we expect to close the unsecured book around 9667 as of March 26th it will take up the covered under guaranteed about 7000 crores. Currently we are 62% of outstanding under the guarantee program.
By March it will become 72%. This has costed us this year roughly about 51 crores with about 12 crores of eligible claims which we should receive money in quarter four next year we expect for the same 7,000 crores as the book starts paying down another 70 crores is premium to be paid. But we do expect based on the flows because the claim ratios are claims are given 18 months after the close of the financial year. That means we should expect 120 crores which is largely from the 200535 crores under the guarantee program that you see under FY25.
Similarly in FY28 we should expect around 300 crores which largely is from the 7014 crores of outstanding which is under FY26. So yes we’ve had a year where we’ve had to pay out guarantee commission but the next two years it will benefit in terms of returns coming out from the NPA that we have seen. I have not put FY27 and 28 because all depends on how much disbursals you do and what kind of flows you have. But I’ve just kept it to a point of time of FY26 and given you a clear indication of what you should expect in terms of reversals to our credit cost both next year and the year after.
This is purely based on outstanding and guarantee program of March 2026 and 2025. I want to take you the P and l summary. Quarter three PAT is at 10 crores. It is the bottom quarter for us. We are giving an expectation of quarter four 26 paat off between 140 to 160 crores. We are hoping to have the meeting and the results by the 30th of April. I now move on to slide number 9 where you can see that we’ve had a very strong growth in CASA year to date. Year to date growth is 29%. Quarter on quarter is 13%.
So has been a very strong CASA. CASA has now moved to 20%. This year we have grown on term deposit 13%. Our total deposits now stand at 33,733 crores with growth this year of 16. For people who remember our guidance was to be at 20% and we should be meeting our guidance for the same. While we have grown our deposits in a very strong way, our cost of deposits have now fallen to 7.7. Given that we already finished nearly 38 days of this quarter, we expect based on what we see our cost to come down further to 7.5% on the cost of funds.
Unsecured book continues to grow strongly mainly led by affordable housing, gold loans and vehicle loans. On the unsecured side we’ve had our best quarter for the last 18 months. We continue to see the same strong trend. Even in Jan. Our BC book which has been a drag has stabilized and we will start seeing growth. We can also see that the DC book collections are now at closer to 99% which you have seen only after a very long time. I now move on to slide number 12 because I do know there will be a lot of questions so that we can all have a look at the bank’s book in a fair amount of granularity.
Our affordable housing which is the largest secured Asset book at 7500 year on year of 35.3% micro at 6201 at 14.5% year on year growth. MSME at 4830 which is a 24% year on year growth. NBFC is at 2145. Vehicle loans at 1554 which is 83% growth. Cold loan continues to grow very strongly at now it’s at 1752 with 194% growth and what has been a big drag on a P and L which is unsecured advances has actually seen a quarter on quarter growth of 4.1 and has first time made the year on year growth positive to 2% which has been a big change for PNL.
I now move on to slide number 15. While we did get distracted and jostled a lot with collections, we never changed our core strategy. Our core strategy of becoming 80% secured, 20% unsecured remains very much intact. We are at 73% secured. The only change to the strategy is we said we’ll be 20% unsecured. Now out of that 20% unsecured roughly about 62% and by March 72% will be under a guarantee program. So we are in a way much more secured as a bank than we originally began when we thought of it. As we look back at April 2025 and you know, this is the time where we decided that given the way the MFI business behaves, it’s better to make sure that we start buying guarantee for any event risk.
Having said that, our idea of becoming an anchor bank for our customers which we regularly show on this slide you can see is showing an all round growth compared to last year. The average relationship is up to 4 gold penetration up from 2 to 2.6. CASA continues to be at the same levels. Our business loan program is up at 21%. Two Wheeler has moved up to 1.2, time deposit at 21. So the whole idea that we are creating operating leverage by doing multiple product with the same customer very much holds true for us and hasn’t been an area that has got weakened in all the slowdown at MFI or the collection challenges.
I will now just do the last slide so that we have enough time for questions and I will move to slide number 18. As you can see, CASA first now stands at 6,742 crores. Year on year growth rate of 41.4%. A time deposit at 26,991. Year on year growth rate at 27.9%. CASA ratio moves up to 20 while cost of funds dropped to a 7.7. For folks who want to know more details about it, our LCR has normalized to 120 and we continue to be a bank which focuses on long tenant deposits with 90.8% of our bulk deposit one year and above and 90.4% of our retail deposits with one year and above.
I think that should give you a good sense of what we missed as a management team. The high slippage is in Q1. Less recovery than we anticipate Q2, but happy to report that Q3 has kind of paid for all of that and we are back to our growth path both on profitability as well our unsecured business and secured business and of course deposits. Drink very strongly. I’ll stop here and I will give it back to you Chintan and we can open up for questions.
Questions and Answers:
Chintan Shah
The line for Chintan has been disconnected. Give me a moment. Meanwhile we’ll start the Q and A session. Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Amanpartle from Invest4Edu. Please go ahead.
Amanpartle
Hello.
R.J. kanwal
Hi.
Amanpartle
Yes, I have two questions. First one is has the credit cost bottom out and what is the outlook on the credit cost ratio for the next year? Second one is.
R.J. kanwal
Yeah, yeah, sure, go ahead, go ahead. Please go ahead, finish it.
Amanpartle
Okay. And second one is, did your universal bank application stop you from kitchen thinking earlier and you choose to take quarterly approach to provisioning. And the last one is, with your signal of credit cost normalizing, increasing means and healthy asset growth, what should we accept from ROI and ROA for the next year? Yeah.
R.J. kanwal
Okay, so let me first answer the question. Credit cost question. Yeah, yeah. So as, as you can see. So one is, we’ve given a clear signal that our credit cost in quarter four will be down in a significant way from quarter three. And since our estimate book, if you can see in page, page six, is also on a decline, so we do expect our cost to be on a sustainable downtrend. If you ask me. Where is it rough and ready on credit cost anticipation? I think that close to about 2.6 odd percent or maybe 2.7% for this financial year.
That’s how we see it. In the coming year we expect the credit cost, given where our SMA book is and given the amount of provisioning we have done, to be the 1.7 to 1.8 range. So that is in the credit cost which will come down to 1.7 to 1.8, which will probably be one of our best credit costs in the last few years. Now from there I will then link it to the ROA RV question you have and come to Universal bank next. Yes, ROA roe. If you assume that our credit cost does come the 1.7 to 1.8 range.
If you see our NIMS, which we anticipate will cross 7% given our unsecured growth is now back. Unsecured growth back. AMAN has two possibilities there. One is of course the book is growing, so better income. Second, reduction in slippages, so lower interest. In suspense, I’ve already spoken of reduction of provision cost when I spoke about reduction of credit cost. Yes. If I, if I then add up, even if I assume the cost of funds to remain flat to Q4, which is about roughly seven and a half, our security is growing very well, so I don’t see a challenge there.
I would expect next year our ROE to be around 14 to 15%. Our NIMS would be about 7 to 7.1 and the ROA should be about 1.5 to 1.6%. So I think we will go back to a good performing year next year with ROAS of 1.5 to 1.6, ROE of 14 to 15 and the NIMS will be the 7 to 7.1% range. So that should give you a good sense of credit cost roas and roes on the universal bank application, did it stop us from kitchen sinking earlier? See listen, there was always a possibility that you take a large amount of provision and then after that you really have quarters which kind of take away the challenges of higher provisioning.
But honestly with us it was slightly different. Like I said, we were a bit more ambitious on what quarter two will do to quarter one slippages and hence did not go in for a big provision in quarter one. We also didn’t anticipate Q1 to be so not good for us. If you remember last year we had a PAT of 500 crores and accident provision of 300. You could have very well kept another 100 crores for additional provisioning last year itself out of the PAT of 500. But I think we kind of misjudged the flows of Q1 and the expected recovery of Q2.
So really our kitchen sinking was never a thought for us because we didn’t expect us to be so challenged in Q1 and Q2. That’s. It has got nothing to do with our universal bank application. Having said that, given clear intent that we are going to resubmit, we continue to maintain the GNP is below 3 and net NPS below 1.
Amanpartle
Thank you sir. Thank you. Thanks.
operator
Thank you. Our next question comes from the line of Smith Shah from Nirmal Bank. Please go ahead.
Smith Shah
Good evening sir. First of all, congratulations to you and your team for the good set of numbers. So I have two questions. My first question is that on the guarantee program we do understand that the cost is upfront and the claim is subsequent. But can you please explain if you have any indication from the corporation on the claims next year.
R.J. kanwal
So listen, we the way we work with them is the same corporation does work with us on ECMDs and we have seen a very transparent, efficient and clear way of how they operate and what the conditions are. So our expectation is that they certainly will be giving us our necessary NPA values when they are due as per their process. Unfortunately, you know, the process is that you get paid 18 months after closure of the financial year, which means everything that I put under the program in March 2025. I will be able to raise the claim only after September 2026 and what I have guaranteed up between March 25 and March 26.
I’ll be able to raise the claim only in after September2027. So I think that time period is where we have to carry the provision. Make sure we meet the three and the one and when some money comes and we will do reverse it. I’m also aware from public disclosure that one of our SFB peers have received a significant amount from the same Guarantee Commission Guarantee Corporation. So I do expect that we will also be able to realize our NPA value in the same process. So we are confident that we’ll get the money. It’s just for us is a harder year because this year we are spending the money and our first sign of any recovery will come next year.
Smith Shah
Okay, got it. And should we expect about the cost to incomes to normalize given your unsecured collection and loan is coming back strongly and if so then by when we should be able to expect this.
Abhilaz Sandur
I’ll take that Ajay. So for the cost income ratio to normalize I think the unsecured book is growing now. So like we have indicated last quarter there’s a growth in unsecured book and also slippages have reduced so that will have a positive impact on the interest income. So having seen this for the previous quarter and the quarter which is coming up, I think cost to income ratio should normalize by Q2 or Q3 in next financial year. So the cost income ratio estimate we are having around considering all the factors which as I also mentioned earlier cost income ratio should be around 60 to 62% when it normalizes.
So that’s where it should stand. So just to add to that, you know the single biggest factor in our cost income has been really a drop of our income led by if you go back to March 24th we were at 9800 crores of unsecured. We’re down to a 9000 odd now that 800 crores of income disappearing had a big impact. And second of course is slippage is causing interest in suspense. But the fact is that once we are this trajectory is back we certainly will see the cost income around 60% and it should not be a surprise because March 24th we were at 57% cost income.
So getting to 60 by quarter two I think should be a reasonable expectation from all.
Smith Shah
Understood? Understood sir. I have one last question please. So like your affordable housing loan booking is like loan book is growing at a twice the pace of your micro lab books. So is this a design or do you see stress in the Micro Lab books?
Abhilaz Sandur
So first is you’re right, our affordable housing by design is moving faster than Microlab. And when we saw the challenges come through beginning April 2025, we decided that we will tighten up some of the Micro Lab conditions. Because there was a lot of noise in the market on small ticket Lab. How it was not looking as good as it should have. That’s been our bias. We also found that our ability to do anchor business which is multi product tends to be much better when we do affordable housing. So consciously we move the incentives and the focus towards affordable housing.
And that will be our strategy going forward too where we will see affordable housing at a faster rate than Microlab. We do expect Micro Lab also to pick up because if you go back to March 24th this would be around a 25% number. We are down to a 1415% number now. Given everything is becoming more clearer in terms of environment. I do see Micro Lab to reach the 20% growth rate in the following year here.
Smith Shah
Got it. Got it sir. Thank you so much.
Abhilaz Sandur
Thank you.
operator
Thank you. Our next question comes from the line of Chia from Incred Equities. Please go ahead.
Chia
Hello. Thank you sir. For the opportunity. I have couple had just couple of questions. The first one is. So the slippages have declined by 25% from 591 crores to 440 crores. Can you elaborate on how this reduction is split between the secured and unsecured portfolios?
Abhilaz Sandur
Sure. Why don’t I let Raban Udar Ad answer this question? Hi. Hi. The slippages of. I mean we had 438 crores as compared to 590 crores. So if I look at the split between unsecured and secured, my secured slippage was about 196 crores and the unsecured slippage was 242 crores.
Chia
Okay. Okay. The next question is.
Abhilaz Sandur
I just want to add. So previous to previous quarter was 360. It fell down 240. Sorry, I should have said that. No worries at all.
Chia
Okay.
Abhilaz Sandur
And similarly, similarly we have seen a drop in the secured secured one also to 196. Yeah.
Chia
Okay. The next question is like with respect to the resubmission of the Universal bank application, do you expect any impact on the P and L in the coming financial year? If you can just highlight some things on that.
R.J. kanwal
Yeah. So listen, we never ever used Universal bank approval in our projections for P and L. We always assume that if we get Universal bank then it will Be a positive on top of whatever we are doing so in our P and L projection in the past and even currently we are not assuming that universal bank coming at what time frame and at what speed do we get what advantage? I just want to state that yes, universal bank will be a big advantage especially on velocity of deposit collection, which is good today. But I guess that will continue with the same velocity with a lower cost of funds.
So that was the primary reason we thought a universal bank will be an advantage. It would also be an advantage for doing more supply chain and trade receivables, etc. Because as you move up the MSME chain, not having a small finance stack does help you with a lot of large MSMEs. And so that would be the second benefit that we would have got. I don’t. We have not put that in the numbers saying universal bank is coming to so much advantage. But yes, if it does come through, then we will certainly like to move very quickly and gain the two advantages that we expect to see.
Chia
Okay, so last question. How is the collection efficiency trending as we see the shrinking SMA book projection? Have you seen any trends for collection efficiency improvement in Q4?
Raman
Yeah, this is Raman here. Let me answer this question. Yes, indeed, collection efficiencies have been steadily improving in Q3 and we have the early reads for Q4 based on January. And what we are seeing is for bucket zero, for example, we are looking at well over 99% and we’ve continued to achieve that for the last few months. And overall collection efficiencies has also been steadily going up for the unsecured book.
Chia
Okay, thank you. Thank you so much.
operator
Thank you. Our next question comes from the line of Harshit Javeri from CBA Asset Managers llp. Please go ahead.
Harshit Javeri
Yeah, hi, can you hear me?
Abhilaz Sandur
Yes, very well. Please go ahead.
Harshit Javeri
Yeah, so my first question is that our cost of deposits I think that have been sliding down. So do we know what is the incremental cost of deposit for the quarter given the tightness in liquidity and how do you intend to sustain the trend?
R.J. kanwal
So it’s fair to say that quarter four looks tight on liquidity. Though I must say that today the liquidity in the system has really improved and costs have started coming down from today. And I think there is a lot of good work done by the regulator on managing liquidity in the system. But January was fairly tight. Cross fresh money coming into the bank is at around 7% which is why we know that when we reprice our existing deposits in the quarter four that our cost of funds will come down to 7.5 because incremental money we are getting is at 7%.
We are just hoping that we continue the strong growth rate that we have seen up to quarter three. But seeing today’s experience I think looks more likely now though January was very tight on liquidity and certainly on deposit growth.
Harshit Javeri
Okay, my second question was like what is your view on the BC book and what will be the strategy around it over the coming years?
R.J. kanwal
So first is our BC book. We had 17 bcs. 14 were did very well. The three large ones didn’t do well. They in fact had significant amount of NPAs and did cause us a challenge. I must say that all three of them continue to be RBCs. They’re working hard on the recoveries. All three continue to have stabilized their selection collections. Two of them are back to growing, one is still focused on collection, not growing. Also, we find a lot of gap in liquidity and capital in the MFI entities. We have seen a lot of MFIs come to us to become our BCS, except the three BCs.
We have had a good experience in the past and so we don’t distrust the model. We think the model holds very well. So we continue to grow our BC business. You will see the BC business in a positive growth first time in quarter four. Also I must add that our BC book has crossed the 99% collection mark first time in January. So we are very comfortable with what we see. And finally I must add that we continue to put even our BC book under the guarantee program. So we are making sure that whatever we do within the bank, both in terms of what we apply as credit criteria, we apply the same to the BC book.
Secondly, what we are doing in the bank of putting it under the guarantee program, we continue doing that for our BC book also. So in substance, yes, our BC business will start showing positive growth and we do expect that it will give us additional tailwind as we go to next financial year because we do expect good recoveries to come from them.
Harshit Javeri
Got it. And so any reason for change in board members? And are you planning to add more board members?
R.J. kanwal
So I guess you’re referring to our presentation deck. So let me go there. Give me a second. It will be valuable for everybody else listening. It’s on slide 27 is what I guess you are referring to. So it’s very simplistic which is, you know, two of our board members are finishing the eight year term which is maximum allowed. And so they have to Step off the board. One is our founder Mr. Ramesh Ramanathan who will have to step off purely because the eight years is over. And second is our current chairman Mr. Ramsheshin will also be stepping down.
So that’s the reason why two board members, one is independent. Mr. Ramsheshan. Ramesh Ramanathan is a non executive, non independent director. They’ll be stepping down the board. We’ve already inducted Mr. Ajay Roti who’s a chartered accountant and has that as his primary background on the board. He joined us on 2nd of Feb. He was inducted. And Mr. Pankaj Razan who’s had a very long and successful financial service assistant joining the board. Our existing independent board member Ms. Chitra Talwar. She will take over the position as part time chairperson which has already received the RBA approval for the same.
So really the board is seeing two veterans come off the board because they have been completely completed the eight years on the board. And with God’s grace we’ve got very solid new board members, both independent ajay Roti and Mr. Pankaj Razdan to come and fill up the board.
Harshit Javeri
Got it. Thank you so much sir for answering my question.
R.J. kanwal
Thank you. Thank you for the questions.
operator
Thank you. Our next question comes from the line of Suraj Chinde from yes, securities. Please go ahead.
Suraj Chinde
Hello. Am I audible, sir? Yes, go ahead. Hello sir. So my first question is on the credit line on UPI. So given your strategy on 80% secured and 20% unsecured seems to be an odd product for your launch as it will be unsecured in nature. So can you explain the rational behind it, sir?
R.J. kanwal
That’s a difficult question, Suraj. But yes, let me. So one is our basic going in position was that we will be a anchor bank for our customers which means full suite of all asset and liability products which will give us operating leverage, will give us customer stickiness.
And that was a going in position as a strategy when we began the bank in 2018. Now the one product we did not have really in our arsenal. So we did all the products. What I would classify as middle India wanted, which is we had unsecured in terms of mfi. We brought in affordable housing, brought microlab, two wheelers, used cars, gold loans. But we never had a solution if somebody wanted to buy a consumer durable or somebody wanted to do a small education loan. Very difficult to administer that kind of a loan if you do it non electronically.
We felt that the card business was too much of a P and L drag in the formative years for us to launch. Thankfully RBI approved small finance banks to do credit line at upi. We think it is a great solution for us to then bring this last mile, the durable finance education loan, the last minute money that you want and it will deliver digitally which is why credit was a very important is a very important launch for us. Will it change our unsecured secured mix? Well I can say the way we are growing and given that credlan UPI will be a small ticket short term approach for customers where they’ll borrow 15,000, 20,000, 30,000, 40,000 it will not change our 80:20 ratio in any significant way.
We don’t expect that to be a challenge and I guess the answer to the question really is and you can see and even this year our secured book is running much faster than what we anticipated. And with the launch of used car, with more products coming around on MSME I still think we’ll meet the 8020 in spite of launching Treadline on UPI. But we’re very conscious that our commitment to do 8020 doesn’t change.
Suraj Chinde
Okay, got it, got it sir. And second question is on the gold line. Gold on Sorry. So given that we have a very small book on the golden side and we have a vast network or branch of network, so do you see sustained high growth rate in the next few years and how do you plan to manage the volatility in the gold prices?
R.J. kanwal
So the first one is, you know live branches for Jenna bank is about roughly 550 branches.
I would expect even if you assume 8 or 10 crore average per branch with this branch network we should be able to deliver close to 4000 odd crores as a outstanding. I do know that large gold companies per branch exposures are like 15 crores. But I am assuming that since we are not a dedicated golden branch business, even if we reach half the number which is about 8 crores we should be a 4000 crore book. I think that should give you a comfort that yes we should see our gold loan book growing at a fast pace for the next two, three years for sure nothing stops us from increasing our gold loan branches because our total branch Network is now 820.
And even if you minus our unbanked rural branches where not many of them tend to gold loans, we still have another 100 odd branches to grow. So some in substance is yes, our gold loans will continue growing faster. Second on how do you manage the volatility? See somehow you know I must tell you that our LTV rates for gold loan is about 52.3%. That’s average LTV rate. We are very clear in our heads that we are making sure, especially when it comes to large ticket gold loans, we are looking at who the customer is and not just making sure that the gold is equal to a loan, but we are making sure that he has ability to repay or sustain any margin calls in case the gold prices do drop.
We don’t see unless there is something completely unexpected happens in terms of gold price halving or something like that. I can’t see why we should have any challenge in the gold loan. It has behaved very well as a business that I must tell you.
Suraj Chinde
Okay, okay, great. Sir, and sir, last question. If may I ask. So your CASA growth has been 40% year on year. So how sustainable is that growth?
R.J. kanwal
So I guess 40 is a very, very strong number. I think frankly if we continue doing the 25 to 30% as we go ahead, I think it will keep us probably at 2 and a half, 3x of the industry growth rate. That would be a fair estimation. It is not to say that we will not try to grow 40%, but I’m conscious that it’s been a very strong growth and committing to that kind of a number would be a very difficult one for us.
But fair to say that we will be growing at multiple times industry growth rate, function of our new segment launches, function of our branch launches, RMs coming in and of course our CASA ratio is just 20%. So I guess we still have enough and more room to grow for the next few years.
Suraj Chinde
Okay. Okay, sir, thank you sir for your detailed response and all the best for your future endeavor.
R.J. kanwal
Thank you so much.
operator
Thank you. Ladies and gentlemen, we take that as the last question for today. I would now like to hand the conference over to management for closing comments.
R.J. kanwal
Thank you. So first I must tell all our investors and analysts on the call that while we are conscious that we could have probably worked harder and better or at least seen the read the tea leaves better in the last two quarters and I think we missed doing that. We were more bullish than what the numbers finally turned out to be. But I’m glad that quarter three has kind of solved all of that. It’s our job now to ensure that we get to the ROAS of 1.5 ROEs of 15 and we are very committed to do so.
Everything that looked as a challenge, I think at least in our mind is addressed and we continue on the strategic path of 80:20. And I thank you all for your patience and support. Thank you very much.
operator
Thank you on behalf of ICICI Securities Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.