RBI returns Jana SFB's application seeking universal banking licence

Jana Small Finance Bank's bid to transition into a universal bank was returned by the RBI for not meeting the eligibility criteria under the 2024 framework for small finance banks.

Jana Small Finance Bank (SFB) on Tuesday said that the Reserve Bank of India (RBI) has returned its application seeking voluntary transition into a universal bank due to non-fulfilment of the criteria prescribed by the central bank.

 

Jana SFB had applied for transition into a universal bank earlier this year (FY26), after it closed the financial year 2025 (FY25) with gross non-performing assets (NPAs) and net NPA ratio of below 3 per cent and 1 per cent respectively for two consecutive years.

 

Shares of the lender were trading at ₹448.85, down 1.72 per cent on the BSE on Tuesday morning.

 

Jana SFB joined AU SFB, and Ujjivan SFB in the list of the small finance banks who are seeking a universal banking license from the RBI, after the central bank in 2024 announced new rules for small finance banks’ conversion into universal banks.

 

While AU SFB applied in September last year, Ujjivan SFB applied in February.

 

AU SFB became the first SFB to get RBI’s nod to transition into a universal bank this year.

 

Ujjivan SFB is yet to hear back from the RBI.

 

According to RBI guidelines, only listed SFBs are eligible to apply for a universal banking license. To qualify, they must have a minimum net worth of ₹1,000 crore, scheduled bank status, and a satisfactory operational track record of at least five years.

 

Additionally, they should have been consistently profitable, with gross non-performing assets below 3 per cent and net NPAs under 1 per cent over the past two financial years.

 

Launched in 2018, Jana SFB is the fourth largest SFB in the country with 12 million customers across 23 states and 2 Union Territories, spread across 802 branches.

 

Jana SFB reported a net profit of ₹75 crore in the second quarter of FY26, and ₹177 crore in the first half of the financial year. Its net interest margin (NIM) for the quarter stood at 6.6 per cent. Meanwhile, the lender’s gross NPAs stood at 2.8 per cent, while net NPAs stood at 0.9 per cent.