Jana Small Finance Bank Limited has announced a significant addition to its leadership team, appointing Sudhir Madhavan as President & Head Strategic Alliance, effective September 25, 2025. This move marks Madhavan's return to the bank, where he previously served from December 10, 2018, to April 30, 2025.

A Seasoned Banker Returns

Sudhir Madhavan brings over two decades of experience in the banking sector to his new role at Jana Small Finance Bank. His expertise spans retail banking, MSME, consumer portfolio management, and collections. Madhavan's career includes notable stints at several prominent financial institutions:

• Over 7 years at Jana Small Finance Bank (previous tenure)
• A brief period at Kinara Capital from April 2025
• Prior experience with Bajaj Finance Limited, ABN Amro, and HDFC Bank

Strategic Appointment

The bank's decision to bring Madhavan back into its fold as President & Head Strategic Alliance underscores the importance of his role in the organization's future plans. His extensive experience and familiarity with Jana Small Finance Bank's operations are likely to be valuable assets as the bank navigates the competitive landscape of small finance banking in India.

Regulatory Compliance

In line with regulatory requirements, Jana Small Finance Bank has made the necessary disclosures regarding Madhavan's appointment to the National Stock Exchange of India Ltd. and BSE Limited. The bank has complied with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing detailed information about the appointment.

Looking Ahead

As Jana Small Finance Bank strengthens its leadership team, the addition of Sudhir Madhavan is expected to contribute to the bank's strategic initiatives and growth plans. His return to the bank after a brief stint elsewhere suggests a strong alignment between Madhavan's expertise and the bank's vision for its future direction in the small finance banking sector.

The appointment of Sudhir Madhavan comes at a time when Jana Small Finance Bank is preparing for its upcoming board meeting on October 17, 2025, where the bank will consider and approve its unaudited financial results for the quarter and half-year ended September 30, 2025. This timing indicates that Madhavan may play a crucial role in shaping the bank's strategies as it moves into the latter half of the fiscal year.

Jana Small Finance Bank and Ujjivan Small Finance Bank are poised for a smoother transition to universal banks, potentially avoiding the need to ring-fence promoters, unlike their counterpart AU Small Finance Bank.

Contrasting Ownership Structures

Jana Small Finance Bank already operates through a listed holding company structure, which aligns with regulatory preferences. On the other hand, Ujjivan Small Finance Bank has achieved full public ownership with zero promoter stake following a reverse merger of its holding company last year.

This stands in contrast to AU Small Finance Bank, which received in-principle approval from the Reserve Bank of India (RBI) with specific conditions. The RBI directed AU SFB to set up a holding company and transfer promoter shares, as promoter Sanjay Agarwal and associates currently hold a 22.85% stake in the bank.

Timeline of Universal Banking License Applications

The race for universal banking licenses among small finance banks is gaining momentum:

• Jana Small Finance Bank applied for the license in June
• Ujjivan Small Finance Bank submitted its application in February
• AU Small Finance Bank is set to apply in September 2024

Benefits of Transitioning to Universal Banks

The transition from small finance banks to universal banks comes with several advantages:

1. Reduced Capital Adequacy Requirements: Capital adequacy requirements will decrease from 15.00% to 11.50%, potentially freeing up capital for growth and expansion.

2. Lower Priority Sector Lending Targets: The mandatory priority sector lending targets will be reduced from 60.00% to 40.00%, offering more flexibility in loan portfolio management.

3. Removal of Loan Size Restrictions: The requirement for 50.00% of loans to be under ₹25 lakh will be eliminated, allowing for a more diverse loan book.

These changes are expected to provide the banks with greater operational flexibility and the ability to serve a broader range of customers and business segments.

As Jana and Ujjivan progress towards universal banking status, their existing ownership structures may prove advantageous in navigating regulatory requirements. This development highlights the evolving landscape of India's banking sector and the ongoing transformation of small finance banks into full-fledged universal banks.