Federal Bank Shares Decline Following Merger Discussions

Jana Small Finance Bank has formally requested a universal banking license from the Reserve Bank of India (RBI). The banks initial application was returned by the RBI in June 2025, allowing the lender the option to submit a revised application in the future.

Jana Small Finance Bank was one of several microfinance institutions that were granted specialized banking licenses under the RBIs framework in 2017. The bank commenced operations as a small finance bank in March 2023 and transitioned to a public company in February 2024.

A universal banking license would enable Jana Small Finance Bank to expand its range of banking services, potentially including investment banking and foreign exchange services, while positioning it to compete with larger commercial banks in India. The move is significant in a rapidly evolving banking sector that aims to improve financial inclusion and diversify service offerings to meet the growing demands of customers.