Jana Small Finance Bank has announced a significant leadership change, with Mrs. Chitra Talwar set to assume the role of Part-Time Chairperson effective February 8, 2026. This appointment, approved by the Reserve Bank of India (RBI), marks a new chapter in the bank's governance structure.

Key Appointment Details

Transition in Leadership

The appointment comes as the current chairperson, Mr. R Ramaseshan, is set to retire after completing the maximum permissible tenure of eight years on February 7, 2026. This transition aligns with the regulatory requirements outlined in Section 10A of the Banking Regulation Act, 1949, and the RBI circular dated April 26, 2021.

Mrs. Talwar's Background

Mrs. Chitra Talwar brings a wealth of experience to her new role:

• Serving as an Independent Director of Jana Small Finance Bank since January 31, 2020
• Over three decades of corporate experience in leading consumer products companies, including Britannia and PepsiCo
• Expertise in sales, marketing, strategy, and general management
• Experience in both Indian and international markets, including a stint in New York
• Led global teams in developing and implementing sales best practices across international markets

Educational Background

• Bachelor of Arts in Economics from Madras University
• MBA from XLRI

Additional Engagements

• Active in non-profit sectors focusing on education and women and child safety
• Keen interest in startups within the Retail and Skill Development spaces
• Previously served as an Independent Director on the board of NourishCo, a joint venture between Tata Consumer Products and PepsiCo India

The bank has confirmed that Mrs. Talwar meets the Fit & Proper criteria prescribed by the RBI and is not disqualified from directorship by any statutory authority. This appointment represents a continuation of Jana Small Finance Bank's commitment to strong corporate governance and experienced leadership.

As the banking sector continues to evolve, Mrs. Talwar's diverse experience in consumer-focused industries and her strategic insights are expected to contribute significantly to Jana Small Finance Bank's future direction and growth strategies.

The Reserve Bank of India (RBI) has returned Jana Small Finance Bank 's application for voluntary transition to a universal bank, citing non-fulfilment of necessary criteria. This development marks a setback for the Bengaluru-based lender in its ambitions to expand its banking operations.

Application and Criteria

Jana Small Finance Bank had submitted its application for the transition to a universal bank, following RBI guidelines. To qualify for a universal banking licence, banks must meet several requirements, including:

• Stock exchange listing
• Minimum net worth of ₹1,000 crore
• Compliance with minimum capital requirements
• Net profit in the previous two fiscal years
• Non-performing asset ratios within prescribed limits

Reasons for Rejection

The bank, which launched operations in March 2018 after starting as a microfinance-focused non-bank finance company, failed to meet these criteria. The specific reasons for the rejection were not disclosed in detail.

Financial Updates

In recent financial developments:

• The bank's board has approved raising ₹250.00 crore through non-convertible debentures on a private placement basis. These debentures will be listed on BSE and form part of Lower Tier II capital under Basel II norms.
• In its quarterly results, Jana Small Finance Bank reported a 40% decline in net profit to ₹102.00 crore, compared to ₹171.00 crore in the same period last year. This decrease was primarily attributed to a 22% increase in total expenses, which rose to ₹1,218.00 crore.
• Total income for the quarter increased to ₹1,516.00 crore from ₹1,356.00 crore year-on-year.

Market Performance

Despite the setback in its universal banking aspirations, Jana Small Finance Bank's shares closed at ₹454.00 on NSE, up 2% for the session. The stock has gained 12% year-to-date.

Implications and Future Outlook

The rejection of Jana Small Finance Bank's application may have several implications:

1. Delayed expansion plans: The bank may need to reassess its growth strategy and timeline for becoming a universal bank.
2. Regulatory compliance focus: The bank might need to concentrate on meeting all RBI criteria before reapplying.
3. Competitive positioning: This setback could affect the bank's competitive stance in the evolving banking landscape.

While this rejection is a temporary setback, it does not preclude Jana Small Finance Bank from reapplying once it meets all the necessary criteria set by the RBI. The bank's future steps and strategy to address the shortcomings will be crucial for its growth aspirations in the Indian banking sector.