Federal Bank Shares Fall 4% On Jana Small Finance Bank Acquisition Reports
· Free Press Journal
Federal Bank shares declined nearly 4% on August 25 after reports that the Kerala-based private lender is in advanced discussions to acquire a controlling stake in Jana Small Finance Bank (Jana SFB).
According to CNBC-TV18, Jana SFB’s promoter could sell its entire 16.9% stake to Federal Bank. The acquisition, if completed, may require Federal Bank to make an open offer for shares held by the remaining shareholders.
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At 1 pm, Federal Bank shares were trading 2.5% lower at Rs 349, while Jana SFB was down nearly 2.38% at Rs 568.
Federal Bank Q1 Net Profit Up 36.58% To ₹1,177 CroreFederal Bank reports strong June-quarter performance
The reported acquisition talks come shortly after Federal Bank posted a strong financial performance for the quarter ended June 2026.
The bank’s net profit rose 36.6% year-on-year to Rs 1,177 crore from Rs 862 crore in the corresponding period last year. However, the figure was slightly below the Bloomberg consensus estimate of Rs 1,186 crore.
Net interest income, a key measure of banking profitability, increased 26.1% to Rs 2,946 crore from Rs 2,337 crore a year earlier. The figure also exceeded the analyst estimate of Rs 2,851 crore.
Asset quality improves, provisions decline
Federal Bank’s provisions fell to Rs 317 crore during the quarter from Rs 400 crore in the year-ago period, although its tax expense increased to Rs 402.7 crore from Rs 294.4 crore.
The lender also reported an improvement in asset quality. Its gross non-performing asset ratio declined to 1.52% from 1.62% in March, while the net NPA ratio improved to 0.18% from 0.20%.
The potential Jana SFB acquisition could expand Federal Bank’s presence in the small finance banking segment, although details of the proposed transaction have yet to be formally announced.