As per RBI norms, SFBs should full 5 years of operations, preserve a internet value of a minimum of ₹1,000 crore, put up earnings for the previous two monetary years, and preserve dangerous loans beneath 3% gross and 1% internet.
The Reserve Financial institution of India (RBI) has ‘returned’ the applying of Jana Small Finance Financial institution (Jana SFB) to transform right into a common financial institution, in line with an trade submitting.
“…we want to convey that the RBI has returned the applying made for Voluntary Transition to Common Financial institution because of non-fulfilment of the factors talked about within the RBI round on this regard…,” Jana SFB stated.
Earlier this 12 months, AU SFB grew to become the primary lender to get an in-principle approval to transform to a common financial institution. Other than Jana SFB, Ujjivan SFB has additionally utilized to transition to a common financial institution, whereas Fino Funds Financial institution has utilized to transform into an SFB.
Eligibility guidelines for SFBs
SFBs are allowed to use for a common financial institution license after profitable completion of 5 years of operations, topic to assembly the minimal paid-up voting fairness capital and internet value necessities relevant to common banks.
Based on RBI’s tips, to ensure that an SFB to transition to a common financial institution, it should be listed on a recognised inventory trade, have a minimal internet value of ₹1,000 crore as on the finish of the earlier quarter, meet the minimal capital necessities of SFBs and should put up a internet revenue within the final two monetary years.
The SFBs should even have gross and internet non-performing asset ratios (GNPA, NNPA) of no more than 3% and 1%, respectively, over the past two monetary years.
“There isn’t a obligatory requirement for an eligible SFB to have an recognized promoter. Nonetheless, the present promoters of the eligible SFB, if any, shall proceed because the promoters on transition to Common Financial institution,” the RBI stated, including that eligible SFBs having a diversified mortgage portfolio can be most popular for the common financial institution license.
(This can be a creating story, please examine again for updates)
Revealed on October 28, 2025
