Why Jana Small Finance Bank's shares are down today
Jana Small Finance Bank just had its application for a universal bank license returned by the Reserve Bank of India (RBI) because it didn't meet all the requirements.
Managing Director Ajay Kanwal was quick to clarify this isn't an outright rejection—they'll work on RBI's concerns and try again.
Still, the news hit hard, with shares dropping almost 6% today.
Universal bank status would have been a game-changer
If Jana had gotten universal bank status, it could have lowered its funding costs—a big deal for any growing bank.
To qualify, banks need to be listed on the stock exchange, have a net worth of at least ₹1,000 crore, and show profits for two straight years.
Earlier in 2025, AU Small Finance Bank got a green light from RBI for universal status, showing how competitive things are and how strict RBI is about these upgrades.