/
•
•
Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
Turning into a full-service bank could help the Bengaluru-based niche lender unlock its share value, but the transition will come with its own set of challenges.
Shareholders of Jana Small Finance Bank may have reason to hope.
The Bengaluru-based lender had a rather disappointing year at the bourses. The stock dropped 27% over the past year. Despite being among India’s best-performing small finance banks, Jana’s shares currently trade at a sharp 50% discount compared to its peers. Blame it on the microfinance sector—Jana’s key lending area—facing a lot of stress lately. Today, nothing is more important for the SFB than restoring investor confidence.
There’s good news on that front now. Just last month, Jana sought the Reserve Bank of India’s nod to become a universal bank. …
The acquisition of IDBI Bank puts his Fairfax smack dab in the middle of the RBI’s rules on bank ownership. It must now decide whether to sell CSB Bank or merge the two lenders, neither of which will be easy.
Lenders stand to gain a lot more than borrowers in the current challenging market environment
The central bank’s shift to a 100% collateral requirement threatens to erode leverage, reduce volumes and force a consolidation across prop desks.
