Jana Small Finance Bank shares rose 4% in early trade on June 10 after the bank announced it had submitted an application to the Reserve Bank of India (RBI) to voluntarily transition into a universal bank. As of 9:27 AM, the shares were trading 4.08% higher at Rs 541.50.
The application, filed on June 9, aligns with the RBI’s ‘on tap’ licensing guidelines for small finance banks issued in December 2019, and the circular on voluntary transition released in April 2024.
To qualify, a small finance bank must meet several eligibility conditions, including listing on a recognised stock exchange, a minimum net worth of ₹1,000 crore, and compliance with capital norms. The applicant must also have reported profits in the last two financial years and maintain non-performing asset (NPA) levels within regulatory limits.
The RBI will first assess the bank’s eligibility before forwarding the application to a five-member standing external advisory committee for detailed evaluation.
If approved, Jana will join the growing list of small finance banks that have transitioned to full-service universal banks, expanding their ability to offer a wider range of financial services across customer segments.
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