TVS Venu Group plans to acquire a 9.99% stake in Bengaluru-based Jana Small Finance Bank through a Rs 450-500 crore infusion, sources familiar with the matter said. The move aligns with RBI rules capping non-financial corporate ownership in banks at 10% and comes as Jana's board meets Monday to approve fundraising via equity shares, warrants or other securities. Jana shares rose nearly 3% to Rs 502.80 on the NSE following the news.
Jana Bank Signals Expansion with Strong Capital Position
Jana Small Finance Bank maintains a capital to risk-weighted assets ratio of 19.4% for FY26, exceeding the RBI's 15% minimum for small finance banks. This buffer supports aggressive growth, and the proposed fundraise aims to bolster the balance sheet further. Promoters control 21.85% through entities like Jana Holdings and Jana Capital, while investors such as TPG Asia (8.11%) and Morgan Stanley-backed North Haven (3.18%) hold significant positions.
TVS Venu Deepens Financial Services Push
The investment fits TVS Venu Group's expanding role in finance. Last month, the group bought Prudential Financial's stake in their Indian asset management joint venture, which manages over Rs 30,000 crore in assets as of December 31, 2025. TVS Credit, the group's NBFC, posted Rs 30,639 crore in assets under management as of March 2026, up 15% year-on-year, with net profit climbing 19% to Rs 913 crore in FY26.
Regulatory Guardrails Shape Strategic Stake
RBI norms limit non-bank corporate stakes to 9.99% in this deal, preserving control while allowing capital inflows. Small finance banks like Jana target underserved markets, blending retail lending with deposit mobilization under strict oversight. TVS Venu's entry reflects corporate interest in fintech-adjacent banking amid India's push for financial inclusion, though no response came from a TVS representative by press time.