Jana Small Finance Bank

Jana Small Finance Bank disclosed that the Reserve Bank of India has returned its application for transitioning to a universal bank, citing non-fulfilment of eligibility requirements. The bank had submitted its application in June 2025. The bank's board approved raising Rs 250 crore through non-convertible debentures on a private placement basis, which will be listed on BSE and form part of Lower Tier II capital under Basel II norms. In quarterly results, net profit declined 40% to Rs 102 crore compared to Rs 171 crore in the same period last year, primarily due to a 22% increase in total expenses to Rs 1,218 crore. Total income rose to Rs 1,516 crore from Rs 1,356 crore year-on-year. Shares closed at Rs 454 on NSE, up 2% for the session and have gained 12% year-to-date.

The Reserve Bank of India returned Jana Small Finance Bank's application for voluntary transition to a universal bank due to non-fulfilment of criteria. The Bengaluru-based lender had applied for the transition in June following RBI guidelines. To qualify for a universal banking licence, banks must meet multiple requirements including stock exchange listing, minimum net worth of Rs 1,000 crore, minimum capital requirements, net profit in the previous two fiscal years, and non-performing asset ratios within prescribed limits. Jana Small Finance Bank, which launched in March 2018 after starting as a microfinance-focused non-bank finance company, failed to meet these criteria. AU Small Finance Bank recently received RBI approval for universal banking transition, while Ujjivan SFB's approval remains pending.

Jana Small Finance Bank reported quarterly results with CASA growing 14% year-to-date and term deposits growing 11% year-to-date, crossing ₹30,000 crore milestone at ₹32,532 crore. Cost of deposits decreased to 7.88% in Q2 FY26 from higher levels. The bank's secured assets showed strong growth of 35-40% with notable performance in Affordable Housing (34.4% year-on-year), MSME (27% year-on-year), Gold Loans (17.5% quarter-on-quarter), and Two-Wheelers (12.8% quarter-on-quarter). Unsecured assets stabilized with 0.3% growth after previous declines. The bank raised ₹250 crore in Tier 2 capital, improving CAR by 1.25%. Net Interest Margin stood at 6.6% for Q2, down from 6.7% in Q1. The bank reported PAT of ₹75 crore for Q2 and ₹177 crore for first half. Gross loan portfolio reached ₹31,655 crore with 72.5% secured assets, 13.5% unsecured under guarantee programs, and 14% unsecured outside guarantee programs. The bank has expanded its guarantee program coverage, expecting 96% of unsecured portfolio to be under guarantee by March 2027. Management revised PAT growth guidance to 0-2% for the year while maintaining 20% growth targets for loans and deposits.