Federal Bank in Talks to Acquire Jana SFB; Shares Dip
By Business Desk
Federal Bank shares fell as talks for a controlling stake in Jana Small Finance Bank advanced. Jana SFB’s promoter may sell entire holding. RBI previously rejected Jana SFB’s universal bank application.
Shares of Federal Bank and Jana Small Finance Bank recorded declines of up to 4.5% and 3.5% respectively on August 25, 2026. This downward movement followed a CNBC-TV18 report indicating Federal Bank was in advanced discussions to acquire a controlling stake in Jana Small Finance Bank.
Market Reaction Details
- Federal Bank’s shares fell to Rs 341.80.
- Jana Small Finance Bank’s shares dropped to Rs 560.95.
The report further suggested that Jana Small Finance Bank’s promoter was considering selling its entire 16.94% holding as part of the proposed transaction.
Background on Jana SFB
This development occurs as Jana Small Finance Bank has previously sought to change its status. The bank applied for voluntary conversion into a universal bank in June 2025.
However, the Reserve Bank of India returned this application in October 2025, citing unmet eligibility criteria for the conversion.
Federal Bank’s Response
In response to the acquisition report, Federal Bank released an exchange filing. The bank acknowledged its routine evaluation of opportunities for business growth and expansion.
Federal Bank clarified that, at the time of the filing, there was no material event or information that required disclosure under SEBI’s listing regulations.