MUMBAI: Shares of Federal Bank closed 3% lower on Tuesday after reports that the lender was pursuing a merger with Jana Small Finance Bank, while Jana SFB fell 2% as sensex closed flat. Both banks later told stock exchanges that they evaluate business opportunities in the ordinary course, without confirming or denying whether merger discussions were underway.Jana Small Finance Bank has sought a universal banking licence from RBI. RBI returned its initial application in June 2025, leaving the lender open to making a future submission.Jana was among the microfinance lenders that received a specialised banking licence in 2017. It began operations as a small finance bank in March and went public in Feb 2024.In its clarification, Federal Bank said it evaluates opportunities for growth and expansion in the ordinary course of business. It said, “there is no material event/ information that requires disclosure under Regulation 30” of Sebi’s Listing Obligations and Disclosure Requirements regulations.Jana Small Finance Bank, responding to a request for clarification from BSE and NSE, said it evaluates “all opportunities in the ordinary course of business, from time to time”.It said that going ahead, it would continue to make disclosures required under Regulation 30.
