Jana Small Finance Bank applies for transition to universal bank

Jana Small Finance Bank Ltd on Monday (June 9) said it has submitted an application to the Reserve Bank of India (RBI) seeking approval for a voluntary transition from a small finance bank to a universal bank.

The bank said the application was filed today, June 9, in line with the RBI’s ‘on tap’ licensing guidelines for small finance banks, issued on December 5, 2019, and the circular on voluntary transition to universal banks, dated April 26, 2024.

To qualify for a universal banking licence, the bank has to meet several eligibility criteria, including being listed on a recognised stock exchange, maintaining a minimum net worth of ₹1,000 crore, and fulfilling minimum capital requirements.

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Additionally, it must have posted a net profit in the last two financial years and ensure its gross and net non-performing asset (GNPA, NNPA) ratios remain within prescribed limits.

The RBI will conduct an initial screening to verify the bank’s eligibility before forwarding the application to a five-member standing external advisory committee for further evaluation. If approved, Jana Small Finance Bank will join the ranks of other small finance banks that have transitioned to full-service lenders in recent years.

Shares of Jana Small Finance Bank Ltd ended at ₹517.85, up by ₹30.65, or 6.29%, on the BSE.

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