The application has been filed in line with the RBI's guidelines for 'on tap' licensing of Small Finance Banks issued on 5 December 2019, and the subsequent circular on voluntary transition to universal banks dated 26 April 2024.
Universal banks provide a comprehensive range of financial services that go beyond traditional commercial and investment banking, often including offerings like insurance. Until now, small finance banks (SFBs) have largely been focused on basic banking activities such as accepting deposits and lending to underserved and unserved segments of the population.
In 2016, the Reserve Bank of India introduced the concept of on-tap licensing, allowing banks to apply for licenses throughout the year instead of waiting for a specific invitation from the central bank. This made the licensing process more flexible and accessible to eligible financial institutions.
For an SFB to transition into a universal bank, it must meet a series of eligibility requirements laid out by the RBI. The bank should have a minimum net worth of Rs 1,000 crore and be operating as a scheduled bank with a satisfactory performance record for at least five years. Financially, it must have posted net profits in the past two financial years, with gross non-performing assets not exceeding 3% and net NPAs capped at 1% over the same period. The bank’s shares also need to be listed on a recognized stock exchange.
Additionally, the RBI does not allow the introduction of new promoters or changes to existing promoter structures during the transition process. Any previously approved promoter shareholding dilution plan must remain unchanged. Preference is generally given to SFBs that have a well-diversified loan portfolio, signaling stability and reduced risk.
Jana Small Finance Bank was launched in March 2018. It has national presence across 23
states and 2 union territories, spread across 802 branches.
On a standalone basis, Jana Small Finance Bank's net profit fell 61.61% to Rs 123.48 crore while total income rose 11.02% to Rs 1,433.16 crore in Q4 March 2025 over Q4 March 2024.