Jana Small Finance Bank shares fall 5% after RBI returns application for Universal Bank plan

Shares of Jana Small Finance Bank Ltd. opened lower on Tuesday, October 28, after the lender said that the Reserve Bank of India (RBI) has returned its application for voluntary transition to a Universal Bank.

The central bank returned the application citing non-fulfilment of the eligibility criteria, Jana Small Finance Bank said in its exchange filing.

The bank had submitted the application in June 2025, seeking approval to transition from a small finance bank to a full-fledged universal bank.

"Applying for a Universal Banking license is a natural progression for Jana," Ajay Kanwal, Managing Director & CEO of Jana Small Finance Bank, had said at the time. "Our mission has always been to serve the underserved and build a bank that’s inclusive, agile, digital, and forward-looking. Becoming a Universal Bank will enable us to offer a broader range of services and become the anchor bank to a rising and Atmanirbhar India."

What were guidelines?

The RBI issued guidelines for voluntary transition of Small Finance Banks to Universal Bank.

- Satisfactory track record of performance for a minimum period of five years

- Minimum net worth of rs 1,000 crore at the end of previous quarter

- Meeting the prescribed CRAR requirements for SFBs

- Having a net profit in the last two financial years

- Having GNPA and NNPA of less than or equal to 3% and 1%, respectively, in the last two financial years

- The eligible SFBs having diversified loan portfolio will be preferred

Jana SFB became eligible to apply for a Universal Banking licence at the end of FY25 and submitted its application soon after becoming eligible.

Earlier, AU Small Finance Bank had received the RBI's approval to transition into a Universal Bank. It had applied on September 3, 2024, and received the final approval after about 11 months.

Ujjivan SFB applied for a Universal Banking licence on February 4, 2025.

Shares of Jana Small Finance Bank ended Monday's trade 1.74% higher at ₹453.60. The stock has gained nearly 12% so far in 2025.