Jana Small Finance Bank shares up 5% on seeking RBI nod for universal bank

Shares of Jana Small Finance Bank jumped over 5 percent on June 10 to test the highest level in nearly 8 months after the lender announced it has submitted application before the Reserve Bank of India (RBI) to transition into a universal bank.

In an exchange filing released post market hours of June 9, Jana Small Finance Bank said that it is seeking approval from the RBI for a voluntary transition, in accordance with the 'on tap' licensing guidelines for small finance banks.

According to the latest amended guidelines published by the RBI, here are some of the eligibility criteria for a small finance bank to transition into a universal one:

• The bank has a scheduled status with a satisfactory track record of performance for a minimum period of five years;


• Shares of the bank are listed on a recognised stock exchange;


• The bank has a minimum net worth of Rs 1,000 crore as at the end of the previous quarter;


• It meets the prescribed CRAR requirements for SFBs;


• The lender has reported a net profit in the last two financial years;


• It has gross non-performing assets (GNPA) and net non-performing assets (NNPA) of less than or equal to 3 percent and 1 percent respectively in the last two financial years.

Jana Small Finance Bank had a net worth of Rs 3,874.31 crore at the end of the previous quarter (Q4 FY25), higher than the required Rs 1,000 crore net worth prescribed by RBI.

The shares of the lender are already listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The small finance bank reported a net profit of Rs 501 crore in FY25 and Rs 669 crore in FY24. Its NPA ratios also meet RBI's requirements. The bank reported a GNPA and NNPA of 2.71 percent and 0.94 percent in FY25 and 2.11 percent and 0.56 percent in FY24 respectively.