Jana Small Finance Bank shares rally 6% after applying for universal banking licence

Jana Small Finance Bank shares rallied 6.4% to their day’s high of Rs 552.9 on the BSE on Tuesday after the lender announced it has submitted an application to the Reserve Bank of India (RBI) seeking a universal banking licence.

“This strategic move marks a major milestone in our growth journey and reflects our commitment to financial inclusion, innovation, and sustainable banking,” the bank said in a statement.

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Since receiving its small finance bank licence in 2017, Jana has built a strong presence in retail and MSME segments, expanded its digital and physical footprint across India, and maintained solid financial and governance performance. The bank said it has developed a robust portfolio of deposits, loans, and financial services tailored to individuals, MSMEs, and institutions.

“With a growing deposit base, national presence, digital capabilities, and a strong asset quality track record, the bank is well-positioned to take the next step in its evolution,” it added.

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Jana Small Finance Bank share price target and performance

According to Trendlyne, the average target price for Jana Small Finance Bank is Rs 540, indicating a potential upside of around 4% from current levels. Both analysts tracking the stock have a ‘Buy’ rating.

On the technical front, the stock’s Relative Strength Index (RSI) stands at 64.1, suggesting neither overbought nor oversold conditions. The MACD is at 2.0, above both its centerline and signal line, indicating a bullish trend.

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Shares of Jana Small Finance Bank closed 6.7% higher at Rs 519.7 on the BSE in the previous session, outperforming the Sensex, which rose 0.31%. The stock is up 29% year-to-date but down 20% over the past 12 months.

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