RBI Returns Jana Small Finance Bank’s Universal Bank Application Over Eligibility Gaps
Mumbai: Jana Small Finance Bank (SFB) on Tuesday said the Reserve Bank of India (RBI) has returned its application to transition into a universal bank, citing non-fulfilment of certain eligibility requirements.
The Bengaluru-based lender had filed the application earlier in FY26 after meeting one of the key criteria under the RBI framework — maintaining gross non-performing assets (NPAs) below 3% and net NPAs under 1% for two consecutive years.
However, the central bank noted that other mandatory conditions were not met, prompting the return of the application.
“In continuation to our letter dated June 9, we wish to inform that the RBI has returned our application for voluntary transition to a universal bank due to non-fulfilment of criteria mentioned in the relevant RBI circular,” Jana SFB said in a filing to the stock exchanges.
Following the announcement, the bank’s shares declined 2.14% to ₹446.4 on the BSE. Over the last five days, the stock had gained ₹9.40 or 2.14%, but it has fallen ₹7.05 or 1.55% in the past month. In the past six months, the shares have slipped ₹68.95 or 13.35%, though they remain up ₹43.90 or 10.87% on a year-to-date basis.
Founded in 2018, Jana SFB is India’s fourth-largest small finance bank, catering to over 12 million customers across 23 states and two Union Territories through 802 branches.
In Q2 FY26, the bank reported a net profit of ₹75 crore, taking its first-half profit to ₹177 crore. Its net interest margin (NIM) stood at 6.6%, while gross NPAs were 2.8% and net NPAs were 0.9%.
