TVS Group and Others Eye Investment in Jana Small Finance Bank
TVS, other investors keen to buy into Jana Small Finance Bank
The Economic Times
Image: The Economic Times
TVS Venu Group, led by Venu Srinivasan, plans to acquire a 10% stake in Jana Small Finance Bank for approximately ₹450 crore as part of a larger fundraising effort of up to ₹700 crore. This marks a significant development for the bank, which is seeking long-term capital from corporate investors while TPG Capital may reduce its stake.
- 01The total fundraising for Jana Small Finance Bank is expected to reach ₹700 crore through primary and secondary deals.
- 02TPG Capital, currently holding 8.11% of Jana, is considering selling up to 5% of its stake.
- 03Jana Small Finance Bank is the fourth largest small finance bank in India by gross loan portfolio.
- 04The bank's capital adequacy ratio stands at 19.4%, exceeding the regulatory minimum of 15%.
- 05TVS Venu Group's investment would be its first in the banking sector and requires approval from the Reserve Bank of India.
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Jana Small Finance Bank is set to attract new investments, including a 10% stake acquisition by the TVS Venu Group for around ₹450 crore as part of a broader fundraising initiative potentially reaching ₹700 crore. This investment reflects a shift towards long-term capital from corporate entities, contrasting with private equity firms that typically seek quicker exits. TPG Capital, which has been a partner since Jana's inception as Janalakshmi Financial Services in 2014, may reduce its stake from 8.11% to around 5%. Jana, currently the fourth largest small finance bank in India, boasts a robust capital adequacy ratio of 19.4%, well above the regulatory requirement of 15%. The interest from the TVS Group marks its entry into the banking sector, pending approval from the Reserve Bank of India. Jana is expected to announce these equity deals soon, indicating a significant step in its growth trajectory.
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The investment could enhance Jana Small Finance Bank's capacity to lend, potentially benefiting customers seeking loans. It may also stabilize the bank's financial foundation, fostering confidence among depositors and investors.
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