Jana Small Finance Bank shares fall nearly 6% as RBI returns application to become universal bank

Shares of Jana Small Finance Bank declined as much as 5.79% to an intra-day low of ₹431 apiece on the National Stock Exchange (NSE) on Tuesday, October 28, after the Reserve Bank of India (RBI) returned its application to become a universal bank.

As of 11:20 am, the stock was trading 2.21% lower at ₹447.40 per equity share.

In a regulatory filing, the bank said that RBI has returned its application for voluntary transition to a universal bank due to non-fulfillment of the criteria as mentioned in the apex bank’s circular regarding the transition.

"We will soon figure out what the answer really is, and we will rectify as per the expectations. We have to keep in mind that this is a return and not a rejection," Kanwal said.

Kanwal added that he will discuss the exact reasons for returning its universal bank application with the RBI top brass later this week and then rectify them before the bank reapplies.

However, he did not give a timeline for a new application.

Kanwal said from an asset perspective, nothing changes for Jana Small Finance Bank, as even now, it is allowed to carry out nearly all the activities like a universal bank.

Inability to do co-lending is one of the restrictions, Kanwal stated, adding that Jana Small Finance Bank does not view it as an impediment to its business plan.

However, from a liability perspective, bagging the universal bank license would have helped reduce the cost of funds, and those plans have now been postponed, he admitted.

Kanwal said Jana Small Finance Bank's recent realignment of its parent company structure was not linked to its aspirations to become a universal bank.

The central bank had earlier this year granted an in-principle nod to Jana Small Finance Bank's larger peer, AU Small Finance Bank, to become a universal bank over a defined timeline. Jana Small Finance Bank's application for the coveted license had also excited investors, which had led to a surge in the stock price.

Jana Small Finance Bank share performance

The stock has gained nearly 2% over the past five days but lost more than 2% over the month. It has slipped about 14% in the last six months. On a year-to-date basis, however, it has surged more than 10%.

While the scrip touched a 52-week high of ₹552.50 on June 10, 2025, it reached a year’s low of ₹363.80 per equity share on January 21, 2025. Jana Small Finance Bank has a total market capitalisation of ₹4,689.89 crore, as of October 28, 2025, according to data on the NSE.