Jana Small Finance Bank Limited has announced a significant addition to its leadership team with the appointment of Mr. Rakesh Joshi as an Additional Director in the capacity of an Independent Director. The appointment, effective August 27, 2025, marks a strategic move for the bank as it brings on board a seasoned professional with over four decades of experience in the banking and financial services sector.

Appointment Details

The bank's board has approved Mr. Joshi's appointment for a term of five years, subject to the approval of shareholders. This decision was disclosed in a regulatory filing to the National Stock Exchange of India and BSE Limited, in compliance with SEBI regulations.

Rakesh Joshi's Extensive Experience

Mr. Rakesh Joshi brings a wealth of experience to Jana Small Finance Bank, with a career spanning 41 years across various facets of the financial industry:

• Diverse Expertise: His experience covers wholesale banking, retail banking, investment banking, and insurance sectors.
• Regulatory Background: Prior to this appointment, Joshi served as a Whole Time Member (Finance and Investments) at the Insurance Regulatory and Development Authority of India (IRDAI), retiring in December 2023.
• Market Insights: With 15 years in front office roles, Joshi has held positions from Junior Trader to Chief Dealer, gaining deep insights into markets and Asset-Liability Management (ALM) organizations.
• Strategic Leadership: Throughout his career, Joshi has been instrumental in designing and restructuring systems and procedures, contributing to growth and profitability improvements across institutions.

Professional Profile

Mr. Joshi's appointment brings several key strengths to Jana Small Finance Bank:

• Financial Acumen: His extensive experience in trading and treasury operations provides a nuanced understanding of financial instruments, risk dynamics, and market behavior.
• Regulatory Expertise: His recent role at IRDAI involved overseeing critical financial and investment frameworks within the insurance sector, contributing to policy formulation and sectoral stability.
• Strategic Vision: Joshi's track record includes delivering measurable improvements in operational efficiency and financial performance across various institutions.

Compliance and Governance

Jana Small Finance Bank has confirmed that Mr. Rakesh Joshi is not related to any existing directors of the bank. Furthermore, the bank stated that Joshi has not been debarred from holding the office of director by any regulatory authority, including SEBI.

The appointment of Rakesh Joshi as an Independent Director is expected to bring valuable insights and strategic direction to Jana Small Finance Bank, leveraging his extensive experience in the financial services sector. This move aligns with the bank's commitment to strengthening its governance and expanding its expertise in navigating the evolving landscape of banking and finance.

Jana Small Finance Bank , a prominent player in India's small finance banking sector, is making strategic moves to optimize its corporate structure while pursuing growth opportunities. The bank has announced plans to merge its non-operative financial holding company into its core investment company, a move aimed at creating a more streamlined and efficient organizational framework.

Merger Details and Rationale

Jana Capital, the core investment company, currently holds a 100% stake in Jana Holdings, which in turn owns a significant 21.88% stake in Jana Small Finance Bank. The proposed merger is designed to simplify this three-tier structure, which was initially established to comply with Reserve Bank of India (RBI) regulations for small finance bank licensing. However, with the RBI having since relaxed these requirements, the bank is seizing the opportunity to consolidate its corporate structure.

Ajay Kanwal, CEO of Jana Small Finance Bank, emphasized that the merger is primarily driven by efficiency considerations. He stated, "This merger is unrelated to our universal banking license application and is focused on improving our operational efficiency." The bank had previously considered a similar merger before its Initial Public Offering (IPO) but had decided against it at the time due to commercial considerations.

Universal Banking Aspirations

In a parallel development, Jana Small Finance Bank has set its sights on expanding its banking capabilities. The institution applied for voluntary transformation to universal banking status on June 9, signaling its ambition to broaden its range of financial services and compete with larger, more established banks.

This move comes in the wake of AU Small Finance Bank's recent success in obtaining an in-principle universal banking license from the RBI, marking it as the first small finance bank to receive such an upgrade approval. Jana's application underscores the growing trend of small finance banks seeking to evolve and expand their service offerings in India's dynamic banking landscape.

Strategic Focus and Future Outlook

Unlike some of its competitors in the small finance banking space, Jana's management has indicated no immediate plans to diversify into insurance or mutual fund product manufacturing. This stance suggests a focused approach on core banking services and the potential expansion of these services through the universal banking route.

The bank's strategic decisions, including the proposed merger and the universal banking application, reflect its commitment to growth and operational optimization. These moves are likely to position Jana Small Finance Bank more competitively in the evolving Indian financial services sector.

Regulatory Compliance and Disclosure

In adherence to regulatory requirements, Jana Small Finance Bank has also disclosed recent communications with tax authorities. According to a filing, the bank received an order from the Additional Commissioner of Central Tax GST, Bengaluru East Commissionerate, Karnataka. The order pertains to a demand of ₹14,32,50,552 plus applicable interest, along with an equivalent penalty.

The bank has stated that the order relates to its treatment of input tax credit on capital goods under the Goods and Services Tax (GST) regime. While the tax authorities have questioned the bank's interpretation of certain GST provisions, Jana Small Finance Bank maintains that its approach is in line with the Central Goods and Services Tax Act, 2017.

The bank's management has expressed confidence in its position, stating, "Based on the assessment and advice of our tax advisors, the Bank does not expect the order to have any material financial impact as the adjustments are not sustainable in law and are wholly defendable on the facts of the case." Jana Small Finance Bank plans to file an appeal against the order with the appropriate Commissioner (Appeals).

As Jana Small Finance Bank navigates these corporate and regulatory developments, stakeholders will be keenly watching how these strategic moves unfold and impact the bank's growth trajectory in the competitive Indian banking sector.