According to the bank’s exchange filing on October 28, the RBI declined the proposal citing non-fulfilment of eligibility requirements. Jana Small Finance Bank had initially submitted its application in June 2025, seeking approval to convert from a small finance bank into a full-fledged universal bank.
Earlier this month, the lender’s board approved a capital raise of Rs 250 crore through the issue of non-convertible debentures (NCDs). The proposed securities will be rated, listed, unsecured, subordinated, and redeemable, forming part of the bank’s Lower Tier II capital under Basel II norms. The issue will be made on a private placement basis to one or more eligible investors.
The NCDs are proposed to be listed on the BSE, with details such as tenure, coupon rate, interest payment schedule, and maturity date to be decided by the board. As unsecured instruments, no charge will be created on the bank’s assets, and the lender clarified that no special rights or privileges are attached to these debentures.
In financial terms, Jana Small Finance Bank’s net profit fell 40% year-on-year to Rs 102 crore in the June 2025 quarter, compared with Rs 171 crore in the same period last year, mainly due to higher expenses. Total expenses rose 22% to Rs 1,218 crore from Rs 1,000 crore a year ago, driven by increased interest and operating costs. Meanwhile, total income improved to Rs 1,516 crore from Rs 1,356 crore in the year-ago period.
Shares of the lender ended the previous session at Rs 454 on the NSE, up 2% from the last close. Jana SFB shares have gained 12% so far this year.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)