Jana Small Finance Bank offers overdraft facility against fixed deposits

Incorporated in 2006, Jana SFB began functioning as a scheduled commercial bank in 2019.

In a bid to extend credit support to its customers who have been financially affected by the COVID-19 pandemic, Jana Small Finance Bank (Jana SFB) is offering a pan-India overdraft (OD) facility at an interest rate of 0.25 percent against fixed deposits (FD). Under this, 90 percent of the value of FD can be availed as an overdraft. 

While customers will continue to earn pertinent rates on their FDs, this move has been introduced to discourage people from liquidating their FDs to meet their immediate monetary needs. The minimum OD amount, which has been set at Rs 10,000 can be availed against FDs that have a duration of 180 days or more and can be withdrawn by any means with simple documentation. This facility will be available till December 30, 2021, with applications closing by June 30, 2021. 

Incorporated in 2006, Jana SFB began functioning as a scheduled commercial bank in 2019. The bank also filed a draft red herring prospectus in 2021, for fresh equity issuance of Rs 700 crore and an offer for sale of around 92,00,000 shares by existing shareholders. 

As of March 31, 2020, the bank also saw a 130 percent rise in its amount of deposits, which rose to around Rs 9,600 crore, as per its financial statements.