Jana Small Finance To Transition From Small Finance Bank To Universal Bank; Submits Application To RBI

On Monday, June 9, Jana Small Finance Bank said it has submitted an application to the Reserve Bank of India seeking approval for a voluntary transition from a small finance bank to a universal bank.

June 9 was when the application was filed, according to the bank. It was in line with the RBI's 'on tap' licensing guidelines for small finance banks, issued on December 5,2019, and the circular dated April 26,2024 on voluntary transition to universal banks.

The bank has to meet several eligibility criteria to qualify for a universal banking license. It includes being listed on a recognised stock exchange. It maintains a minimum net worth of ₹1,000 crore, and fulfills minimum capital requirements.

On the BSE, shares of Jana Small Finance Bank Ltd ended at ₹517.85, up by ₹30.65, or 6.29%, on the BSE.

It must have ensured its gross and net non-performing asset (GNPA,NNPA) ratios remain within prescribed limits. It must have also posted a net profit in the last two financial years.

An initial screening will be conducted to verify the bank's eligibility by the RBI, before forwarding the application to a five-member standing external advisory committee for further evaluation. If the committee approves, Jana Small Finance Bank will join the ranks of other small finance banks that have transitioned to full-service lenders in recent years.