Jana Small Finance Bank set to merge investment and financial holding firms

Jana Small Finance Bank has initiated a process to merge its nonoperative financial holding company into core investment company to create a leaner structure even as the bank is awaiting Reserve Bank of India's decision on its universal bank licence application.

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Jana Capital is the core investment company, which promoted Jana Holdings as the nonoperative holding company to hold the promoter stake in the small finance bank. Jana Capital holds 100% in Jana Holdings, which in turn, holds 21.88% in the bank.

The decision to merge the two holding companies into one is not related to Jana's universal banking aspirations while this would only help improving efficiency through a leaner structure, managing director and chief executive officer Ajay Kanwal said.

Jana Capital would continue to be operational and will hold shares in the bank.