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.
