Jana Small Finance Bank's Universal Dream Deferred

Jana Small Finance Bank's application for a universal bank license was returned by the RBI due to unmet criteria. Managing Director Ajay Kanwal plans to address the issues and reapply. The bank continues operating as a small finance bank, with slight impacts on funding costs and investor interest.

The Reserve Bank of India (RBI) has returned Jana Small Finance Bank's application for a universal bank license, citing non-fulfilment of criteria.

Ajay Kanwal, Managing Director and CEO, acknowledged this setback but clarified that it was a return, not a rejection. He intends to consult the RBI and rectify issues before reapplying.

The bank's current activities remain largely unaffected, though universal status would lower funding costs. Recent stock volatility reflects investor response to the application decision.

(With inputs from agencies.)