Jana Small Finance Bank to apply for universal bank license in May
Kolkata:
Jana Small Finance Bank
has ticked all the boxes to become eligible to seek a universal banking license, making it the third lender in this space to earn this tag.
#Pahalgam Terrorist Attack
The groundwork before India mounts a strike at Pakistan
India considers closing airspace to Pakistani carriers amid rising tensions
Cold Start: India's answer to Pakistan's nuclear threats
The bank would submit the application in May, Jana managing director Ajay Kanwal told ET.
"It's a defining year for us. We have created a more stable and diversified book amid the ongoing
microfinance crisis
. We have raised the share of the secured portfolio to 70% now from 60% a year back," Kanwal said.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Co-Founder of Google Brain, Andrew Ng, Is Reported To Have Read Every...
Blinkist: Andrew Ng's Reading List
Undo
The bank made an accelerated provision of Rs 305 crore in this fiscal against Rs 73 crore in the preceding one, besides regulatory provision of Rs 448 crore as against Rs 606 crore, to bring down the
net non-performing assets ratio
below 1%, which is one of the key eligibility criteria for become eligible to apply for universal bank licence.
Its net NPA stood at 0.94% at the end of FY25 as compared with 0.56% in the preceding fiscal. Its gross NPA ratio stood at 2.71% against 2.11%, below the 3% threshold as per the eligibility criteria.
Live Events
The
Reserve Bank of India
regulation says that a small finance bank needs to be listed, profitable, have a minimum Rs 1000 crore net worth and a diversified portfolio and have gross NPA and net NPA ratios below 3% and 1% respectively for the two fiscals in a row to apply for the license.
AU Small Finance Bank
and
Ujjivan Small Finance Bank
have already applied for the universal bank licence.
An upgraded licence for small finance banks would ease regulations. If granted the coveted licence, their
capital adequacy requirement
would come down from 15% while the priority sector lending target would be lower at 40% instead of 75%. The norm for having at least 50% of the loan portfolio in loans less than Rs 25 lakh would not apply anymore. A universal tag would invariably improve the branding as well.
Jana on Tuesday reported a net profit of Rs 123 crore for the fourth quarter which was 62% lower than the net profit of Rs 322 crore seen in the year ago period. Its annual profit stood at Rs 501 crore for FY25 against Rs 670 crore in the preceding fiscal.
Its operating profit for the fourth quarter was 14.3% lower at Rs 293 crore.
Its assets under management grew 19% year-on-year to Rs 29,545 crore, with secured assets growing 40% to Rs 20663 crore. Deposits grew 29% to Rs 29120 crore at the end of the last fiscal.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
15 minutes ago
- Indian Express
UP govt revises SOP to boost financial autonomy of urban local bodies
The Uttar Pradesh Urban Development Department has revised the Standard Operating Procedure (SOP) outlining financial and administrative powers of urban local bodies (ULBs) in the state. Under the new guidelines, Nagar Panchayats will now be empowered to independently sanction development projects up to Rs 1 crore, while municipal Councils can undertake projects worth up to Rs 2 crore. This marks a significant jump from the earlier limit of Rs 40 lakh set in the 2021 SOP. Officials said the updated SOP is part of a broader set of reforms aimed at promoting decentralisation, improving transparency, and strengthening urban governance. One of the key changes allows the use of interlocking tiles on roads up to 3.75 metres in width, an infrastructure upgrade that aligns with modern urban planning needs. In addition to enhancing financial autonomy, the revised SOP has also introduced stronger accountability mechanisms. If a construction project is found to be substandard, 50% of the cost recovery will be borne by the contractor, while the remaining 50% will be recovered from the concerned engineers and administrative officials of the respective ULB. The district magistrate will oversee this recovery process. Urban local bodies have also been instructed to maintain ward-wise road directories and conduct GIS mapping of existing infrastructure to aid in more efficient future planning. 'It is a step towards reforms and would improve the quality and effectiveness of urban governance and at the same time increase transparency. These revised SOP norms also aim to promote decentralization,' claimed Amrit Abhijat, Principal Secretary, Urban Development Department.
Time of India
17 minutes ago
- Time of India
Prayagraj's women lead the way with 46.71% workdays under MNREGA
1 2 Prayagraj: The state government's relentless efforts towards women's empowerment and employment have yielded impressive results in Sangam City. Under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), women's participation in total workdays generated has reached an encouraging 46.71 per cent. A total of 1.60 crore jobs (manav diwas) have so far been created under the MNREGA scheme across the state in the financial year 2025-26, out of which women contributed to the creation of more than 72 lakh jobs. The contribution of about 45 per cent is the highest so far. Interestingly, women are also proving helpful for MNREGA management and supervision. The number of women mates employed under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) has increased in the current financial year. Over 5,500 women mates have been employed, marking a 3 percent rise from 41.87 per cent in 2024-25. Deputy commissioner (MNREGA) Gulab Chandra said, "As many as 6,112,887 jobs (manav diwas) have so far been created in the Prayagraj district during the financial year 2024-25. The percentage of workdays of women workers in the total workdays created has been 46.71%, which is more than the state average." He said, "The responsibility of rozgar sevak (women mate) given to rural women under MNREGA is bringing a big change in their lives." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Chandra said as many as 852 women mates were employed in the district in the financial year 2024-25. The govt provides an honorarium of Rs 325 per day to these women mates. In this way, it turned out to be a source of additional income for them along with their household work. Namrata Devi, a resident of Arjun Patti Gram Panchayat of Handia development block of the district, says that her husband Akhilesh works in a rubber factory, but the basic needs of the house were not met. After being appointed to the job of a mahila mate in MNREGA, she is able to get extra money every month and manages the house smoothly. Sushila Devi, a resident of Jagua Sodha Gram Panchayat of Handia development Khand, claims, "Despite her work as a welder, the education of two children and household expenses were not met with this amount." She said that with the income she gets from MNREGA mate, she is able to cover the education expenses of her children.
Time of India
17 minutes ago
- Time of India
Restaurants & hotels cheer move that was ‘much awaited'
New Delhi: The restaurant and hotel industry of Delhi was overjoyed when Delhi CM posted on social media that the requirement for Delhi Police Eating House License has been scrapped. Various restaurant bodies welcomed LG and Delhi CM's decision and stressed that this long-awaited reform will offer significant relief and boost to the capital's restaurant and hospitality industry. The move, hailed as a milestone for ease of doing business by industry, is expected to unlock fresh growth and investment in the food and beverage sector. National Restaurant Association of India (NRAI), which had been advocating the removal of this license for over a decade, termed the decision as a progressive step. Sagar Daryani, president of NRAI, said: "This reform will not only save time and resources but also foster a more vibrant, business-friendly environment for both existing and aspiring entrepreneurs in the F&B sector." Highlighting the burdens of the earlier system, Manpreet Singh, treasurer of NRAI, noted that entrepreneurs already have to obtain several approvals—including from DPCC, fire department, MCD/NDMC, FSSAI, and excise department. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 1 Bite Daily On An Empty Stomach Can Transform Your Health Gundry MD Learn More Undo "Despite this, police still required documents like rent agreements and fresh verification every year—even for the same owner running multiple outlets. This duplicative process was time-consuming and burdensome. " Garish Oberoi, chairman of Delhi State Committee and Treasurer of HRANI said: "Many projects ready to open were delayed solely due to this license. Now, time and money won't be wasted, and restaurants won't have to wait to offer full F&B services even after paying excise fees." Pranay Aneja, executive committee Member of FHRAI, agreed, "Every hotelier in Delhi has a big smile today. We've had to run from one department to another for this one license. Now that energy can go into running our businesses." Sandeep Anand Goyle, Delhi Chapter Head of NRAI, said the association had submitted this demand to CM on May 13. "Delhi and West Bengal were the only places where this license still existed. Its removal will reduce hurdles for restaurateurs, attract outside investment, and lead to new projects, more jobs and higher revenue for the state," he said. "Many big chains had stopped coming to Delhi. This decision changes that and the entire industry is enthused," Goyle added.
