Jana Small Finance Bank Share Price Surges on Applying for Universal Bank Status

Jana Small Finance Bank has submitted an application to the Reserve Bank of India (RBI) to transition from a small finance bank to a universal bank. The application was filed on June 9 under RBI’s “on tap” licensing guidelines issued in December 2019 and the April 2024 circular for voluntary transition.

Requirements for Universal Bank Status

To be considered for universal bank status, a small finance bank must meet several regulatory conditions. These include a minimum net worth of ₹1,000 crore, listing on a recognised stock exchange, compliance with capital adequacy norms, and a track record of net profit in the last two financial years. The bank must also maintain gross and net non-performing asset (GNPA and NNPA) ratios within the RBI’s prescribed limits.

Jana SFB stated that it meets the criteria and has submitted the application accordingly. The RBI will conduct an initial screening of eligibility before passing the application to a 5-member external advisory committee for further review.

About Jana Small Finance Bank

Jana Small Finance Bank received its small finance bank licence in 2017. Since then, it has built operations focused on retail and MSME banking. The bank operates through both digital platforms and physical branches across India. Its services include deposits, loans, and other financial products targeted at individuals and small businesses.

According to the bank, it has expanded its national presence over the years and has developed systems for digital banking and customer acquisition across segments.

Read more: Jana Small Finance Bank Q4 FY25 Results: Net Profit Declines 62% YoY, Interest Income Grows 8%!

Jana Small Finance Bank Market Performance 

As of 9:30 AM on June 10, Jana Small Finance Bank share price was at ₹539, up 3.60% for the day. Over the past 6 months, the stock has gained 27.74%, but it remains down by 22.38% over the past year.

Conclusion

The application is currently under RBI review. If approved, Jana SFB would join other small finance banks that have made the shift to universal banking in recent years, gaining access to a broader set of banking permissions and market operations.

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