Jana Small Finance Bank has approved raising ₹728 crore through equity share sales, representing 7.31% of the fully diluted share capital. According to reports from The Economic Times, the bank board approved this capital infusion on Monday. The fundraising will be executed through a combination of primary and secondary share sales, with multiple investors participating in the transaction. The capital raise values Jana Small Finance Bank at about ₹9,959 crore after the investment, representing a significant jump from its valuation of around ₹5,500 crore in early 2025, signaling the bank's growth ambitions.
Shruti Lohia's firm will acquire approximately 4% stake in the bank, while TVS Venu Group led by industrialist Srinivasan Venu will take a 9.9% stake on a fully diluted basis. As reported by The Economic Times, TVS Venu will acquire 5% through Singapore-based GWC Family Fund Investments Pte. Ltd. in a primary deal, with the remaining 4.9% owned by TVS Motor Company purchasing shares from Jana Holdings Ltd, which currently holds 21.85% as of March 31. Other participants include Singularity Large Value Fund III, ICM Finance Private Ltd, Capri Global Ventures Private Ltd, and Utpal Hemendra Sheth. The latest development shows TVS Motor Company's Investment Committee approved the acquisition of 4.90% stake for ₹193.31 crore on May 18, 2026, with the transaction expected to complete within 3 months.
The investment marks TVS Venu Group's first investment in the banking sector. According to The Economic Times, Jana Bank is planning to upgrade to a universal bank, which will enable easier regulations for capital adequacy requirements and priority sector lending targets. The bank initially applied for a universal banking license in June 2025, but RBI returned the application in October due to some gaps while keeping the window open for a fresh application. The new capital is vital for meeting the higher capital requirements needed for a universal banking license, though investors buying over 4.99% must pass strict 'fit and proper' checks, a process that can take months.
Jana Bank reported a net profit of ₹326 crore for FY26, declining from ₹474 crore in the preceding fiscal year. As reported by The Economic Times, the bank's gross loan portfolio stood at ₹36,289 crore, showing a 23% year-on-year growth. The bank requires RBI approval for the TVS Venu Group investment, which would examine fit and proper criteria of the investor, with no approval required for investments up to 4.99%. For comparison, most listed small finance banks trade between 20x-35x P/E, with AU Small Finance Bank valued around ₹40,000 crore (P/E 28x) and Ujjivan Small Finance Bank at ₹10,000 crore (P/E 18x). The bank's total income has shown consistent growth over the past three fiscal years, with FY2025-26 total income reaching ₹6,374.76 crore.
